EX-99.1 3 e16040ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Newmont Mining Announces Third Quarter Net Income of $114.4 Million ($0.28 per share) and Nine Month Net Income of $322.5 Million ($0.80 per share, basic) DENVER, Oct. 29 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (the Company) (NYSE: NEM) today announced third quarter net income applicable to common shares of $114.4 million ($0.28 per share), a 450% increase from the net income of $20.8 million ($0.05 per share) for the third quarter of 2002. Newmont earned net income of $322.5 million ($0.80 per share, basic) for the nine months ended September 30, 2003, a 307% increase from the $79.2 million ($0.22 per share) for the year-ago period. Third quarter highlights include: * Equity gold sales(1) of 2.06 million ounces at total cash costs of $201 per ounce;(2) * Net cash provided by operating activities of $209.5 million; and * Net debt to total capitalization reduced to approximately 13%, with cash and cash equivalents of $419.4 million at the end of the third quarter. Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont, said: "Newmont's outstanding third quarter results are further evidence of the strength of our portfolio of core operating assets. Higher gold prices and significantly higher margins are being reflected in strong bottom-line earnings per share growth. For the full year, we expect to be at the higher end of our previous gold sales forecast of between 7.2 million and 7.4 million ounces." Third Quarter Nine Months 2003 2002 2003 2002 Financial (in millions, except per share) Revenues $897.0 $720.1 $2,392.7 $1,859.1 Net cash provided by operating activities $209.5 $247.1 $434.4 $445.1 Net income applicable to common shares $114.4 $20.8 $322.5 $79.2 Net income per common share, basic $0.28 $0.05 $0.80 $0.22 Operating Equity gold sales (000 ounces)(1) 2,064 2,088 5,669 5,416 Average realized price ($/oz) $366 $315 $357 $308 Total cash costs ($/oz)(2) $201 $189 $205 $193 Total production costs ($/oz)(2) $265 $247 $268 $252 1. Equity gold sales ounces are those attributable to Newmont's ownership or economic interest. 2. For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. Financial & Operating Review Third quarter net income applicable to common shares was $114.4 million ($0.28 per share), compared with net income of $20.8 million ($0.05 per share) for the third quarter of 2002. For the first nine months, net income applicable to common shares was $322.5 million ($0.80 per share, basic) compared with net income of $79.2 million ($0.22 per share) for the first nine months of 2002. During the third quarter, the Company sold 2,064,100 equity ounces of gold, essentially unchanged from the 2,088,000 equity ounces sold a year ago. The quarter saw strong performance at the Company's core operations in Nevada, Australia, Yanacocha and Batu Hijau. In particular, Yanacocha had an exceptional quarter with equity gold sales of 451,200 ounces, a 37% increase over the year ago quarter, at total cash costs of $113 per ounce. At Batu Hijau, net cash costs were $0.10 per pound, a record low, as higher ore grades were processed (due to the planned mining sequence) and higher gold by-product credits were received. The average realized gold price for the third quarter was $366 per ounce, a 16% increase over the prior year period. During the first nine months, the Company sold 5,668,500 equity ounces of gold, 5% higher than the prior year period. The increase in ounces sold largely reflects the February 15, 2002 acquisition date of Franco-Nevada and Normandy Mining, as well as higher gold sales from Yanacocha. The average realized gold price for the first nine months was $357 per ounce, a 16% increase over the prior year period. The Company generated cash from operating activities of $209.5 million in the third quarter. For the first nine months, cash from operating activities totaled $555.4 million, before utilizing $121.0 million for the settlement of effective derivative instruments classified as cash flow hedges. The following items impacted net income for the third quarter of 2003: -- a net $13.6 million ($0.03 per share) after-tax loss on investments, primarily related to the sale of 28 million shares of Kinross Gold; -- a $32.8 million ($0.08 per share), after-tax loss for the change in fair value of gold derivative instruments that do not qualify as _effective hedges_ and are thus recognized in income; -- a $14.5 million ($0.04 per share) after-tax gain on the extinguishment of Newmont Yandal Operations Pty Ltd (NYOL) bonds; -- a $20.9 million ($0.05 per share) after-tax gain on the extinguishment of NYOL derivative liabilities; and -- other miscellaneous charges totaling $3.0 million, after-tax ($0.01 per share). These items had the net effect of reducing net income by $14.0 million ($0.03 per share). Operating Highlights - Third Quarter North America Q3 2003 Q3 2002 YTD 2003 YTD 2002 Equity gold sales (000 ozs) 786.2 836.4 2,170.7 2,292.0 Total cash costs ($/oz)(1) $239 $222 $238 $228 * At the North American operations, third quarter gold sales of 786,200 ounces were 6% lower than the year ago quarter due to marginally lower gold sales from Nevada and a 25% decline in gold sales from the Canadian operations. * The Nevada operations sold 696,900 ounces in the third quarter, a 3% decrease from the third quarter of 2002. Total cash costs of $240 per ounce were 7% higher than a year ago, primarily attributable to higher reagent costs and contractor costs, as well as higher cost production from the Deep Post underground mine due to the ongoing ground remediation efforts. Recoveries at the roaster and autoclaves were excellent, averaging 91% in the third quarter compared to 86% in the year ago quarter. * Golden Giant in Canada sold 42,800 ounces in the third quarter (-29%) as a result of fewer ore stopes. Total cash costs were 10% higher than a year ago at $238 per ounce due to a stronger Canadian dollar and a 41% decline in tons milled, partially offset by a 55% improvement in ore grades processed. * Holloway in Canada sold 17,400 equity ounces in the third quarter (-13%) due to an expected decline in ore grades (-20%). Total cash costs of $297 per ounce were 84% higher than a year ago. Cash costs were impacted by a stronger Canadian dollar, a 13% decrease in tons mined and lower sales due to lower ore grades processed. * La Herradura in Mexico sold 16,500 equity ounces in the third quarter (-7%) due to slower than anticipated leach recoveries. Total cash costs of $181 per ounce were 7% higher than a year ago due to lower gold sales. * Mesquite in California sold 12,600 ounces at total cash costs of $196 per ounce. An agreement to sell the Mesquite operations to Western Goldfields was entered into in July 2003 and this transaction is now expected to close in November. South America Q3 2003 Q3 2002 YTD 2003 YTD 2002 Equity gold sales (000 ozs) 495.0 394.5 1,274.5 1,015.0 Total cash costs ($/oz)(1) $121 $124 $125 $135 * Yanacocha in Peru had an exceptional quarter, selling a record 451,200 equity ounces (+37%) at total cash costs of $113 per ounce (-5%). Higher grade ores (+18%), quicker leach recoveries from the recently completed Carachugo leach pad expansion and the installation of additional carbon columns contributed to record gold sales in the third quarter. Equity gold sales are, however, likely to be lower in the fourth quarter. * Kori Kollo in Bolivia sold 43,800 equity ounces (-33%) as the mine approaches closure. Kori Kollo processed lower grade ores (-19%) and mined 71% less tons compared to the year ago quarter. As a result, total cash costs at $199 per ounce were 31% higher than a year ago. Australia Q3 2003 Q3 2002 YTD 2003 YTD 2002 Equity gold sales (000 ozs) 511.8 475.3 1,450.2 1,171.6 Total cash costs ($/oz)(1) $235 $201 $237 $192 * At the Australian operations, third quarter gold sales of 511,800 ounces were up 8% from the year ago quarter, with increased sales at Kalgoorlie, Pajingo and Tanami. Cash costs at $235 per ounce were up 17%, largely due to the impact of a stronger Australian dollar, which has risen approximately 25% against the U.S. dollar over the past 12 months. * Kalgoorlie sold 116,000 equity ounces (+23%) at total cash costs of $266 per ounce (+19%). Higher average ore grades (+12%), increased mill throughput (+11%) and improved recoveries helped mitigate the impact of a stronger Australian dollar. * Pajingo sold 90,900 ounces (+18%) at total cash costs of $128 per ounce (+31%). Higher sales were driven by higher mill throughput (+4%) and improved ore grades (+27%). Higher cash costs are attributable to a stronger Australian dollar and increased royalty payments. * Tanami sold 153,100 ounces (+15%) at total cash costs of $241 per ounce (+17%). Higher cash costs were primarily attributable to a stronger Australian dollar. * Yandal sold 151,800 ounces (-11%) at total cash costs of $269 per ounce (+16%). Lower sales were primarily the result of lower grade ores milled at the Bronzewing mine (-21%). Bronzewing is expected to complete mining at the end of the first quarter of 2004. Batu Hijau (Indonesia) Q3 2003 Q3 2002 YTD 2003 YTD 2002 Equity copper sales (M lbs) 103.2 114.5 264.3 271.4 Equity gold sales (000 ozs) 116.5 96.9 262.7 200.2 Net cash costs ($/lb Cu)(1) $0.10 $0.24 $0.19 $0.31 * Batu Hijau in Indonesia had an exceptional quarter. Net cash costs for the third quarter were a record $0.10 per pound, a 58% reduction from the year ago quarter, driven by significantly higher ore grades, higher gold by-product credits and lower treatment and refining charges. Higher ore grades in the third quarter are generally a function of the long-term mine plan, which accesses higher grade ores during the dry season. * Equity copper sales of 103.2 million pounds for the third quarter were 10% lower than the year ago quarter as tons processed decreased by 15% compared to the year ago quarter when softer ores were processed. * Batu Hijau contributed equity income of $36.0 million in the third quarter, benefiting from a 36% higher realized copper price of $0.84 per pound, compared to $0.62 for the year ago quarter. Other Operations Q3 2003 Q3 2002 YTD 2003 YTD 2002 Equity gold sales (000 ozs) 151.0 162.9 464.3 467.0 Total cash costs ($/oz)(1) $160 $149 $168 $151 * Zarafshan in Uzbekistan sold 50,200 equity ounces (-29%) at total cash costs of $153 per ounce (+25%). Decreased sales and higher unit cash costs were due to lower grade ores placed on the leach pads (-24%). * Ovacik in Turkey sold 51,500 ounces (+41%) due to increased throughput (+45%) as tons mined increased (+66%) due to a pit extension. Total cash costs were slightly higher than the year ago quarter at $128 per ounce (+4%). * Martha in New Zealand sold 26,200 equity ounces (-5%) at total cash costs of $217 per ounce (+57%). Lower sales were driven by lower grade ores processed (-27%). Higher total cash costs were driven by mill liner replacement costs, higher power and consumables as well as a stronger New Zealand dollar. * Minahasa in Indonesia sold 23,100 equity ounces (-18%). While mining ceased at Minahasa in October 2001, the processing of stockpiled ore is expected to continue through the second quarter of 2004. Total cash costs were $182 per ounce (-30%). 1. For a reconciliation of total cash costs per ounce or net cash costs per pound (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. Other Highlights Cash Position Cash and cash equivalents totaled $419.4 million at the end of the third quarter. During the third quarter, cash flow from operations plus the cash generated from the sale of Kinross Gold shares was utilized for: -- the extinguishment of the remaining NYOL derivative obligations ($26.2 million); -- net repayment of long-term debt ($138.7 million); -- capital expenditures on property, plant and mine development ($151.1 million); and -- payment of dividends ($16.4 million). Debt Reduction The Company's balance sheet continues to strengthen, with net repayment of $138.7 million of long-term debt during the quarter. The net debt to total capitalization ratio decreased to approximately 13% at the end of the third quarter, from 16% at the end of the second quarter and 20% at the end of 2002. On September 22, the Company announced the early redemption of the $100 million Battle Mountain Gold 6% Convertible Subordinated Debentures. Payment of approximately $104.9 million in principal and accrued interest will be made to bondholders on October 29. On October 10, the Company announced a tender offer for approximately $177 million of a subsidiary's 8.375% Senior Debentures due 2005. As of October 27, approximately $123.5 million had been irrevocably tendered. The offer is scheduled to expire on November 7, 2003, unless extended. On October 23, the Company announced a tender offer for $90 million of a subsidiary's 7.5% Notes due 2005. The offer is scheduled to expire on November 19, 2003, unless extended. Australian Gold Hedge Books The Company substantially eliminated the Australian gold hedge books during the quarter. Committed ounces were reduced by 195,000 ounces through the resolution of the NYOL insolvency process in Australia. NYOL was returned to the control of its Board of Directors on September 9. Newmont Capital Portfolio optimization efforts continue. During the quarter, Newmont Capital: -- reduced the Company's interest in Kinross Gold to approximately 4.9% through the sale of 28 million Kinross Gold shares, realizing pre-tax proceeds of $224.6 million; -- finalized a letter of intent with a subsidiary of Placer Dome America for a 25% interest in the Turquoise Ridge Joint Venture, as announced on September 24; -- advanced the acquisition of Moydow's 50% interest in the Ntotoroso property in the Ahafo project in Ghana; -- sold the Company's 24% stake in the Mt. Woods joint venture in Southern Australia for approximately 13% of Minotaur Resources Ltd.; -- secured a letter of intent with Southwestern Resources for a potential joint venture covering its Liam gold-silver project in south-central Peru. In addition, subscribed to a $5.0 million private placement in Southwestern Resources; -- entered into joint ventures with Adelaide Resources in South Australia, Andean American Mining in central Peru and with AXMIN in Mali; and -- obtained an agreement for the sale of Yandal's Wiluna mine to a management-led group of investors for approximately $2.8 million. Newmont Capital also manages the Company's royalty business. For the quarter, royalty revenues totaled $15.8 million, compared with $7.9 million for the year ago quarter. For the nine months, royalty revenues totaled $40.8 million, significantly higher than the $22.9 million for the first nine months of 2002. The increase is attributable to higher gold, oil and gas prices and a full year of revenues in 2003 compared to a partial year in 2002 due to the February 15, 2002 acquisition date of Franco-Nevada. Exploration & Project Development On September 24, the Company provided updated information on a number of projects that, if developed as currently anticipated, will increase annual gold sales from between 7.3 million and 7.4 million ounces in 2003 to approximately 7.7 million ounces in 2007. In addition, total cash costs are expected to decrease from the current 2003 forecast of between $202 and $208 per ounce to between $175 and $190 per ounce in 2007. In Nevada, gold production commenced at the Gold Quarry South Layback in Nevada. The Leeville project is proceeding well with surface facilities essentially complete. The sinking of the ventilation and production shafts is continuing on schedule. Leeville is expected to begin gold production in the fourth quarter of 2005. Engineering work for a bio-flotation circuit for Mill 5 is underway with an expected start-up in the fourth quarter of 2004. The Company expects bio-flotation, an $18 million capital investment, to increase the bio-milling process recovery rate from 55% to approximately 75% and, more importantly, to provide an economic process to treat mid-grade refractory material that would otherwise have been considered waste. At Twin Creeks, stripping commenced at the Section 30 Layback (south Mega Pit) in August. Gold production is expected in 2005. At the end of the third quarter, Newmont had 64 drill rigs operating around the world. Exploration highlights during the quarter include continuing positive results in Nevada and at the Ahafo and Akyem projects in Ghana. In Nevada, exploration and development drilling results continue to indicate excellent reserve addition potential at Gold Quarry and the Twin Creeks Sage Layback (north Mega Pit). At Midas, drilling continues to define a new vein of high grade gold mineralization discovered at a lower elevation than the main Midas veins. In Ghana, positive drill results across the trend at Ahafo and at the open pit at Akyem provide confidence that the Company will more than double existing reserves to 10 million equity ounces by year-end. The Company continues to update the feasibility studies for Ahafo and Akyem and expects to complete the Ahafo feasibility study update in November. Pending finalization of an acceptable foreign investment contract with the Ghanaian government, a development decision for the projects is expected by year-end 2003. Updated 2003 Forecast The Company has updated its 2003 Forecast (refer to Page 12 of 26). In summary, equity gold sales are projected to be between 7.3 million and 7.4 million ounces at total cash costs of between $202 and $208 per ounce. Changes to the previous forecast include: -- in Nevada, an expected $4 increase in total cash costs to $232 per ounce, largely reflecting the impact of the ground remediation efforts at Deep Post; -- at Yanacocha, a 7% increase in ounces sold to 1.47 million equity ounces, at slightly higher total cash costs of $120 per ounce; -- in Australia, marginally lower total cash costs of approximately $241 per ounce, at essentially unchanged forecasted sales of 1.9 million ounces; and -- at Batu Hijau, an expected 15% decrease in net cash costs of between $0.22 and $0.24 per pound. Forecasted copper sales are now between 340 million and 350 million equity pounds and equity gold sales increased from 290,000 ounces to 315,000 ounces. Statements of Consolidated Operations Three Months Ended September 30, 2003 2002 (unaudited, in thousands, except per share) Revenues Sales - gold $870,949 $697,829 Sales - base metals, net 10,211 14,339 Royalties 15,832 7,900 896,992 720,068 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 457,983 431,756 Base metals 4,881 10,611 Depreciation, depletion and amortization 151,443 133,649 Exploration, research and development 30,646 25,356 General and administrative 28,954 29,742 Write-down of long-lived assets 3,582 283 Other 5,498 6,756 682,987 638,153 Other income (expense) Loss on investments, net (3,322) -- Loss on gold commodity derivative instruments, net (46,927) (11,191) Gain on extinguishment of NYOL bonds, net 19,617 -- Gain on extinguishment of NYOL derivatives liability, net 29,928 -- Dividends, interest income, foreign currency exchange and other income 22,376 7,926 Interest expense, net (18,756) (33,082) 2,916 (36,347) Pre-tax income before minority interest, equity (loss) income and impairment of affiliates 216,921 45,568 Income tax expense (80,977) (10,756) Minority interest in income of subsidiaries (57,125) (32,495) Equity loss and impairment of Australian Magnesium Corporation (574) (486) Equity income of affiliates 36,189 18,929 Net income applicable to common shares $114,434 $20,760 Net income $114,434 $20,760 Other comprehensive income, net of tax 33,013 (75,443) Comprehensive income $147,447 $(54,683) Net income per common share, basic and diluted $0.28 $0.05 Basic weighted average common shares outstanding 408,379 401,422 Diluted weighted average common shares outstanding 412,922 402,960 Cash dividends declared per common share $0.04 $0.03 Statements of Consolidated Operations Nine Months Ended September 30, 2003 2002 (unaudited, in thousands, except per share) Revenues Sales - gold $2,309,531 $1,789,579 Sales - base metals, net 42,379 46,644 Royalties 40,773 22,902 2,392,683 1,859,125 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 1,280,692 1,143,806 Base metals 30,216 29,990 Depreciation, depletion and amortization 421,373 359,437 Exploration, research and development 82,365 55,711 General and administrative 86,656 78,709 Write-down of long-lived assets 5,376 283 Other 29,836 6,165 1,936,514 1,674,101 Other income (expense) Gain on investments, net 81,393 47,298 Gain (loss) on gold commodity derivative instruments, net 24,742 (14,338) Gain on extinguishment of NYOL bonds, net 114,031 -- Gain on extinguishment of NYOL derivatives liability, net 106,506 -- Loss on extinguishment of debt (19,530) -- Dividends, interest income, foreign currency exchange and other income 86,020 23,514 Interest expense, net (71,371) (99,320) 321,791 (42,846) Pre-tax income before minority interest, equity (loss) income and impairment of affiliates and cumulative effect of a change in accounting principle 777,960 142,178 Income tax expense (232,578) (41,765) Minority interest in income of subsidiaries (130,721) (62,329) Equity loss and impairment of Australian Magnesium Corporation (120,059) (1,174) Equity income of affiliates 62,467 38,341 Net income before cumulative effect of a change in accounting principle 357,069 75,251 Cumulative effect of a change in accounting principle, net of tax (34,533) 7,701 Net income 322,536 82,952 Preferred stock dividends -- (3,738) Net income applicable to common shares $322,536 $79,214 Net income $322,536 $82,952 Other comprehensive income, net of tax 93,172 (17,737) Comprehensive income $415,708 $65,215 Net income per common share before cumulative effect of a change in accounting principle, basic $0.88 $0.20 Cumulative effect of a change in accounting principle per common share, basic (0.08) 0.02 Net income per common share, basic $0.80 $0.22 Net income per common share before cumulative effect of a change in accounting principle, diluted $0.88 $0.20 Cumulative effect of a change in accounting principle per common share, diluted (0.09) 0.02 Net income per common share, diluted $0.79 $0.22 Basic weighted average common shares outstanding 405,243 360,577 Diluted weighted average common shares outstanding 407,941 362,023 Cash dividends declared per common share $0.12 $0.09 Consolidated Balance Sheets September 30, 2003 December 31, 2002 (unaudited, in thousands) ASSETS Cash and cash equivalents $419,411 $401,683 Marketable securities 124,774 13,188 Accounts receivable 52,802 44,510 Inventories 178,076 169,324 Stockpiles and ore on leach pads 242,139 328,993 Prepaid taxes 21,281 28,335 Deferred stripping costs - short-term 49,871 32,085 Deferred income tax assets 54,286 51,451 Newmont Australia infrastructure bonds 116,415 -- Other current assets 66,103 43,687 Current assets 1,325,158 1,113,256 Property, plant and mine development, net 2,378,020 2,287,030 Mineral interests and other intangible assets, net 1,373,457 1,415,348 Investments 727,134 1,206,705 Deferred stripping costs - long-term 33,724 23,302 Long-term stockpiles and ore on leach pads 297,069 199,761 Deferred income tax assets 887,994 761,428 Other long-term assets 95,457 123,112 Goodwill 3,037,201 3,024,576 Total assets $10,155,214 $10,154,518 LIABILITIES Current portion of long-term debt $175,927 $115,322 Accounts payable 148,890 105,277 Deferred income tax liabilities 3,793 28,469 Derivative instruments 5,093 74,999 Employee related benefits - short-term 143,038 100,936 Other current liabilities 347,190 268,460 Current liabilities 823,931 693,463 Long-term debt 1,198,126 1,701,282 Reclamation and remediation liabilities 418,340 288,536 Deferred revenue from sale of future production 53,841 53,841 Derivative instruments 8,563 388,659 Deferred income tax liabilities 802,938 656,452 Employee related benefits - long-term 205,121 234,103 Other long-term liabilities 312,189 364,376 Total liabilities 3,823,049 4,380,712 Minority interest in subsidiaries 368,238 354,558 STOCKHOLDERS' EQUITY Total stockholders' equity 5,963,927 5,419,248 Total liabilities and stockholders' equity $10,155,214 $10,154,518 Statement of Consolidated Cash Flows Three Months Ended September 30, 2003 2002 (unaudited, in thousands) Operating activities: Net income $114,434 $20,760 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 151,443 133,649 Accretion of accumulated reclamation obligations 5,799 -- Amortization of deferred stripping costs, net (15,599) 19,856 Deferred income taxes 6,346 (16,282) Foreign currency exchange gain (19,213) (20,494) Minority interest, net of dividends 6,042 31,195 Equity income of affiliates, net of dividends (35,615) (12,683) Write-downs of inventories, stockpiles and ore on leach pads 2,492 21,711 Write-down of long-lived assets 5,376 283 Loss on investments, net 3,322 -- Loss on gold commodity derivative instruments, net 46,927 11,191 Gain on extinguishment of NYOL bonds, net (19,617) -- Gain on extinguishment of NYOL derivatives liability, net (29,928) -- Gain on sale of assets and other (2,823) (10,549) (Increase) decrease in operating assets: Accounts receivable (3,220) 3,352 Inventories, stockpiles and ore on leach pads 6,450 (6,485) Other assets (4,429) 34,132 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 9,775 20,999 Derivative instruments (2,453) (29,242) Early settlement of derivative instruments classified as cash flow hedges -- (1,168) Other liabilities (16,042) 46,835 Net cash provided by operating activities 209,467 247,060 Investing activities: Additions to property, plant and mine development (151,099) (97,361) Advances to joint ventures and affiliates, net 6,190 -- Proceeds from sale of investments 230,537 712 Early settlement of ineffective derivative instruments (26,191) (11,857) Cash consideration for acquisition of Normandy and Franco-Nevada, net of cash received and transaction costs -- (229) Proceeds from asset sales and other 625 10,428 Net cash (used in) provided by investing activities 60,062 (98,307) Financing activities: Proceeds from long-term debt 377,478 4,240 Repayment of long-term debt (516,223) (115,041) Dividends paid on common and preferred stock (16,387) (12,060) Proceeds from stock issuance and other 29,997 5,066 Other -- 687 Net cash used in financing activities (125,135) (117,108) Effect of exchange rate changes on cash 276 (24,902) Net change in cash and cash equivalents 144,670 6,743 Cash and cash equivalents at beginning of period 274,741 285,405 Cash and cash equivalents at end of period $419,411 $292,148 Supplemental information: Interest paid, net of amounts capitalized $30,116 $33,956 Income taxes paid $34,690 $20,220 Statement of Consolidated Cash Flows Nine Months Ended September 30, 2003 2002 (unaudited, in thousands) Operating activities: Net income $322,536 $82,952 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 421,373 359,437 Accretion of accumulated reclamation obligations 17,119 -- Amortization of deferred stripping costs, net (29,713) 28,759 Deferred income taxes 15,091 (26,685) Foreign currency exchange gain (53,232) (9,990) Minority interest, net of dividends 50,448 58,329 Equity loss (income) and impairment of affiliates, net of dividends 63,694 (27,542) Write-downs of inventories, stockpiles and ore on leach pads 20,433 37,608 Write-down of long-lived assets 5,376 283 Cumulative effect of a change in accounting principle, net of tax 34,533 (7,701) Gain on investments, net (81,393) (47,298) (Gain) loss on gold commodity derivative instruments, net (24,742) 14,338 Gain on extinguishment of NYOL bonds, net (114,031) -- Gain on extinguishment of NYOL derivatives liability, net (106,506) -- Loss on extinguishment of debt 19,530 -- Gain on sale of assets and other (13,472) (20,253) (Increase) decrease in operating assets: Accounts receivable 4,780 17,765 Inventories, stockpiles and ore on leach pads (19,124) (11,926) Other assets 2,903 49,013 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 63,931 (25,474) Derivative instruments (15,388) (29,242) Early settlement of derivative instruments classified as cash flow hedges (120,993) (1,168) Other liabilities (28,740) 3,939 Net cash provided by operating activities 434,413 445,144 Investing activities: Additions to property, plant and mine development (366,400) (238,171) Advances to joint ventures and affiliates, net (40,013) (24,750) Proceeds from sale of investments 232,190 491,445 Proceeds from the sale of TVX Newmont Americas 180,000 -- Proceeds from sale of cross currency swaps -- 50,816 Early settlement of ineffective derivative instruments (55,339) (11,857) Cash consideration for acquisition of Newmont NFM minority interest and other acquisitions (11,195) -- Cash consideration for acquisition of Normandy and Franco-Nevada, net of cash received and transaction costs -- (88,114) Proceeds from asset sales and other 1,613 30,316 Net cash (used in) provided by investing activities (59,144) 209,685 Financing activities: Proceeds from long-term debt 492,478 493,371 Repayment of long-term debt (838,583) (1,026,858) Dividends paid on common and preferred stock (48,695) (37,931) Proceeds from stock issuance and other 54,848 67,964 Other -- (4) Net cash used in financing activities (339,952) (503,458) Effect of exchange rate changes on cash (17,589) (8,654) Net change in cash and cash equivalents 17,728 142,717 Cash and cash equivalents at beginning of period 401,683 149,431 Cash and cash equivalents at end of period $419,411 $292,148 Supplemental information: Interest paid, net of amounts capitalized $97,413 $95,624 Income taxes paid $145,157 $65,920 Operating Statistics Summary North America South America Australia Three months ended September 30, 2003 2002 2003 2002 2003 2002 Production Costs Per Ounce: Direct mining and production costs $254 $203 $120 $123 $228 $191 Capitalized mining & other (20) 12 (4) (3) (6) (1) Cash operating costs 234 215 116 120 222 190 Royalties and production taxes 5 7 5 4 13 11 Total cash costs(5) 239 222 121 124 235 201 Reclamation and mine closure costs 4 2 3 5 2 4 Total costs applicable to sales 243 224 124 129 237 205 Non-cash inventory adjustment -- -- -- -- -- -- Depreciation and amortization 57 49 58 42 61 50 Depreciation and amortization adjustment -- -- -- -- -- 18 Total production costs(5) $300 $273 $182 $171 $298 $273 Consolidated gold sales (000 ozs.) 786.2 836.4 928.5 715.7 511.8 497.2 Equity gold sales (000 ozs.) 786.2 836.4 495.0 394.5 511.8 475.3 Average realized price per equity ounce $362 $314 $364 $314 $365 $319 Equity Other(1) Investments Total and Other(2)(3) Three months ended September 30, 2003 2002 2003 2002 2003 2002 Production Costs Per Ounce: Direct mining and production costs $193 $155 -- -- $208 $179 Capitalized mining & other (38) (9) -- -- (14) 4 Cash operating costs 155 146 -- -- 194 183 Royalties and production taxes 5 3 -- -- 7 6 Total cash costs(5) 160 149 -- -- 201 189 Reclamation and mine closure costs 2 5 -- -- 3 4 Total costs applicable to sales 162 154 -- -- 204 193 Non-cash inventory adjustment -- -- -- -- -- -- Depreciation and amortization 82 48 -- -- 61 47 Depreciation and amortization adjustment -- 24 -- -- -- 7 Total production costs(5) $244 $226 -- -- $265 $247 Consolidated gold sales (000 ozs.) 152.5 164.8 3.6 1.2 2,382.6 2,215.3 Equity gold sales (000 ozs.) 151.0 162.9 120.1 218.9 2,064.1 2,088.0 Average realized price per equity ounce $364 $315 -- -- $366 $315 Copper Summary(4) Equity copper production (millions of lbs.) 125.5 138.6 Equity copper sales (millions of lbs.) 112.0 127.1 Net cash cost per equity pound $0.13 $0.25 Average realized price per pound $0.84 $0.67 North America South America Australia Nine Months ended September 30, 2003 2002 2003 2002 2003 2002 Production Costs Per Ounce: Direct mining and production costs $249 $215 $125 $134 $226 $180 Capitalized mining & other (18) 8 (4) (2) (2) 2 Cash operating costs 231 223 121 132 224 182 Royalties and production taxes 7 5 4 3 13 10 Total cash costs(5) 238 228 125 135 237 192 Reclamation and mine closure costs 3 3 4 3 2 4 Total costs applicable to sales 241 231 129 138 239 196 Non-cash inventory adjustment -- 1 -- -- -- 4 Depreciation and amortization 61 48 59 55 58 48 Depreciation and amortization adjustment -- (1) -- -- -- 14 Total production costs(5) $302 $279 $188 $193 $297 $262 Consolidated gold sales (000 ozs.) 2,170.7 2,292.0 2,364.8 1,821.0 1,467.6 1,223.9 Equity gold sales (000 ozs.) 2,170.7 2,292.0 1,274.5 1,015.0 1,450.2 1,171.6 Average realized price per equity ounce $353 $306 $355 $306 $354 $314 Equity Other(1) Investments Total and Other(2)(3) Nine Months ended September 30, 2003 2002 2003 2002 2003 2002 Production Costs Per Ounce: Direct mining and production costs $181 $156 -- -- $207 $185 Capitalized mining & other (17) (8) -- -- (10) 2 Cash operating costs 164 148 -- -- 197 187 Royalties and production taxes 4 3 -- -- 8 6 Total cash costs(5) 168 151 -- -- 205 193 Reclamation and mine closure costs 2 2 -- -- 2 3 Total costs applicable to sales 170 153 -- -- 207 196 Non-cash inventory adjustment -- 2 -- -- -- 1 Depreciation and amortization 71 51 -- -- 61 51 Depreciation and amortization adjustment -- 19 -- -- -- 4 Total production costs(5) $241 $225 -- -- $268 $252 Consolidated gold sales (000 ozs.) 470.8 474.3 10.4 10.3 6,484.3 5,821.5 Equity gold sales (000 ozs.) 464.3 467.0 308.8 470.4 5,668.5 5,416.0 Average realized price per equity ounce $355 $308 -- -- $357 $308 Copper Summary(4) Equity copper production (millions of lbs.) 321.6 327.2 Equity copper sales (millions of lbs.) 310.5 309.1 Net cash cost per equity pound $0.25 $0.34 Average realized price per pound $0.80 $0.72 (1) Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia) and Martha (New Zealand). (2) Equity investments comprise Batu Hijau (and TVX Newmont Americas and Echo Bay Mining Limited through January 31, 2003). (3) Includes 10,400 and 10,300 ounces from the wholly-owned Golden Grove zinc/copper mine in 2003 and 2002, respectively. (4) Represents both Batu Hijau and Golden Grove (5) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. Updated 2003 Forecast Equity Gold Total Sales Cash Costs (000 oz) ($/oz) North America Nevada 2,550 $232 Mesquite(1) 50 $144 Golden Giant 220 $233 Holloway 70 $286 La Herradura 70 $171 Sub-total 2,960 $230 South America Yanacocha 1,465 $120 Kori Kollo 155 $183 Sub-total 1,620 $126 Australia Kalgoorlie 400 $277 Pajingo 320 $130 Tanami(2) 600 $245 Yandal 575 $275 Sub-total 1,895 $241 Other Martha(2) 90 $236 Zarafshan 220 $150 Minahasa 90 $238 Ovacik 160 $129 Sub-total 560 $172 Equity Investments Batu Hijau 315 -- TOTAL 7,300 - 7,400 $202 - $208 Notes: (1) Assumes sale to Western Goldfields is completed by November 2003. (2) Effective April 2003, 100% interest. Equity Copper & Zinc Sales Net Cash Costs (million lbs) ($/lb) Batu Hijau - Copper 340-350 $0.22-$0.24 Golden Grove - Copper 75-85 $0.63-$0.66 Golden Grove - Zinc 110-120 $0.20-$0.24 Financial Projections (in millions, except tax rate) Royalty revenue $45-$50 Depreciation, depletion & amortization $550-$570 Exploration and research $100-$110 General and administrative $105-$110 Interest expense $90-$95 Tax rate (assuming $360/oz gold) ~30% Capital expenditures $525-$550 Sensitivity to Changes in the Gold Price An annualized $10 change in the gold price changes annual net income by approximately $50 million, assuming all other factors remain constant. An annualized $10 change in the gold price changes annual cash generated by operating activities by approximately $56 million, assuming all other factors remain constant. Supplemental Information 1. Gold Production Summary - Americas Nevada Canada Yanacocha, Peru Three months ended September 30, 2003 2002 2003 2002 2003 2002 Tons Mined (000 dry short tons): Open-Pit 43,475 35,808 n/a n/a 53,268 54,125 Underground 414 359 267 388 n/a n/a Tons Milled/Processed (000): Oxide 1,036 1,314 275 382 n/a n/a Refractory 2,355 2,511 n/a n/a n/a n/a Leach 5,016 3,822 n/a n/a 40,524 42,029 Average Ore Grade (oz/ton): Oxide 0.116 0.131 0.259 0.214 n/a n/a Refractory 0.221 0.222 n/a n/a n/a n/a Leach 0.029 0.035 n/a n/a 0.027 0.023 Average Mill Recovery Rate: Oxide 77.0% 76.2% 95.6% 94.7% n/a n/a Refractory 91.3% 86.2% n/a n/a n/a n/a Ounces Produced (000): 696.0 690.9 60.5 75.3 862.4 638.9 Equity Ounces Produced (000): Oxide 87.1 130.8 60.5 75.3 n/a n/a Refractory 514.7 466.6 n/a n/a n/a n/a Leach 94.2 93.5 n/a n/a 442.8 328.1 Total 696.0 690.9 60.5 75.3 442.8 328.1 Equity Ounces Sold (000) 696.9 722.0 60.2 80.4 451.2 329.6 Production Costs Per Ounce: Direct mining and production costs $258 $204 $244 $201 $111 $116 Capitalized mining & other (22) 14 5 1 (3) (2) Cash operating costs 236 218 249 202 108 114 Royalties and production taxes 4 7 6 1 5 5 Total cash costs 240 225 255 203 113 119 Reclamation and mine closure costs 3 2 9 6 2 4 Total costs applicable to sales 243 227 264 209 115 123 Non-cash inventory adjustment -- -- -- -- -- -- Depreciation and amortization 55 46 81 65 60 41 Depreciation and amortization adjustment -- -- -- -- -- -- Total production costs $298 $273 $345 $274 $175 $164 Kori Kollo, Bolivia Other(1) Three months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons): Open-Pit 1,425 4,894 3,042 2,918 Underground n/a n/a n/a n/a Tons Milled/Processed (000): Oxide n/a n/a n/a n/a Refractory 1,764 1,952 n/a n/a Leach 978 1,569 1,050 1,015 Average Ore Grade (oz/ton): Oxide n/a n/a n/a n/a Refractory 0.035 0.049 n/a n/a Leach 0.018 0.019 0.026 0.027 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory 60.9% 58.7% n/a n/a Ounces Produced (000): 48.4 72.0 29.1 34.0 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory 32.9 50.4 n/a n/a Leach 9.7 13.0 29.1 34.0 Total 42.6 63.4 29.1 34.0 Equity Ounces Sold (000) 43.8 64.9 29.1 34.0 Production Costs Per Ounce: Direct mining and production costs $216 $158 $183 $189 Capitalized mining & other (17) (6) (3) (5) Cash operating costs 199 152 180 184 Royalties and production taxes -- -- 7 7 Total cash costs 199 152 187 191 Reclamation and mine closure costs 17 5 4 1 Total costs applicable to sales 216 157 191 192 Non-cash inventory adjustment -- -- -- -- Depreciation and amortization 34 48 65 79 Depreciation and amortization adjustment -- -- -- -- Total production costs $250 $205 $256 $271 (1) Other includes La Herradura and Mesquite Nevada Canada Yanacocha, Peru Nine months ended September 30, 2003 2002 2003 2002 2003 2002 Tons Mined (000 dry short tons): Open-Pit 131,264 100,917 n/a n/a 154,716 153,461 Underground 1,256 980 926 1,171 n/a n/a Tons Milled/Processed (000): Oxide 1,795 3,774 943 1,180 n/a n/a Refractory 6,865 6,703 n/a n/a n/a n/a Leach 12,619 11,582 n/a n/a 113,317 108,549 Average Ore Grade (oz/ton): Oxide 0.148 0.124 0.242 0.225 n/a n/a Refractory 0.216 0.215 n/a n/a n/a n/a Leach 0.029 0.032 n/a n/a 0.028 0.023 Average Mill Recovery Rate: Oxide 82.7% 75.0% 95.3% 95.0% n/a n/a Refractory 90.7% 87.9% n/a n/a n/a n/a Ounces Produced (000): 1,859.2 1,916.3 212.2 261.2 2,183.9 1,589.5 Equity Ounces Produced (000): Oxide 217.4 353.1 212.2 261.2 n/a n/a Refractory 1,360.9 1,237.7 n/a n/a n/a n/a Leach 280.9 325.5 n/a n/a 1,121.4 816.2 Total 1,859.2 1,916.3 212.2 261.2 1,121.4 816.2 Equity Ounces Sold (000) 1,865.1 1,927.1 211.9 272.2 1,130.0 823.1 Production Costs Per Ounce: Direct mining and production costs $253 $220 $254 $194 $116 $129 Capitalized mining & other (22) 9 2 1 (3) (3) Cash operating costs 231 229 256 195 113 126 Royalties and production taxes 8 6 3 -- 5 5 Total cash costs 239 235 259 195 118 131 Reclamation and mine closure costs 3 2 7 6 2 2 Total costs applicable to sales 242 237 266 201 120 133 Non-cash inventory adjustment -- 1 -- -- -- -- Depreciation and amortization 57 46 89 68 62 57 Depreciation and amortization adjustment -- (2) -- -- -- -- Total production costs $299 $282 $355 $269 $182 $190 Kori Kollo, Bolivia Other(1) Nine months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons): Open-Pit 7,638 14,631 8,918 9,022 Underground n/a n/a n/a n/a Tons Milled/Processed (000): Oxide n/a n/a n/a n/a Refractory 5,400 5,746 n/a n/a Leach 3,696 4,664 3,067 2,971 Average Ore Grade (oz/ton): Oxide n/a n/a n/a n/a Refractory 0.036 0.049 n/a n/a Leach 0.017 0.018 0.026 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory 62.4% 59.6% n/a n/a Ounces Produced (000): 161.4 218.4 93.7 92.7 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory 108.1 150.7 n/a n/a Leach 34.0 41.5 93.7 92.7 Total 142.1 192.2 93.7 92.7 Equity Ounces Sold (000) 144.5 191.9 93.7 92.7 Production Costs Per Ounce: Direct mining and production costs $199 $160 $169 $182 Capitalized mining & other (13) (6) (4) (8) Cash operating costs 186 154 165 174 Royalties and production taxes -- -- 6 4 Total cash costs 186 154 171 178 Reclamation and mine closure costs 12 4 3 2 Total costs applicable to sales 198 158 174 180 Non-cash inventory adjustment -- -- -- -- Depreciation and amortization 34 47 66 77 Depreciation and amortization adjustment -- -- -- -- Total production costs $232 $205 $240 $257 (1) Other includes La Herradura and Mesquite 2. Gold Production Summary - Australia Kalgoorlie Pajingo Three months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons) 13,178 11,492 204 158 Tons Milled/Processed 1,883 1,702 204 196 Average Ore Grade (oz/ton) 0.069 0.059 0.466 0.366 Average Mill Recovery Rate 84.0% 81.9% 96.8% 96.6% Ounces Produced (000) 115.6 94.1 91.2 69.6 Equity Ounces Produced (000) 115.6 94.1 91.2 69.6 Equity Ounces Sold (000) 116.0 94.6 90.9 77.2 Production Costs Per Ounce: Direct mining and production costs $283 $199 $131 $96 Capitalized mining & other (25) 18 (13) (3) Cash operating costs 258 217 118 93 Royalties and production taxes 8 7 10 5 Total cash costs 266 224 128 98 Reclamation and mine closure costs 4 4 -- 3 Total costs applicable to sales 270 228 128 101 Non-cash inventory adjustment -- 1 -- -- Depreciation and amortization 19 22 90 48 Depreciation and amortization adjustment -- 7 -- 54 Total production costs $289 $258 $218 $203 Tanami Yandal Three months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons) 4,948 4,103 1,002 1,001 Tons Milled/Processed 1,214 1,112 1,394 1,417 Average Ore Grade (oz/ton) 0.129 0.147 0.120 0.122 Average Mill Recovery Rate 95.7% 96.4% 90.1% 91.3% Ounces Produced (000) 151.3 156.9 150.7 165.9 Equity Ounces Produced (000) 151.3 134.7 150.7 165.9 Equity Ounces Sold (000) 153.1 133.4 151.8 170.1 Production Costs Per Ounce: Direct mining and production costs $215 $187 $258 $232 Capitalized mining & other 3 (2) 3 (8) Cash operating costs 218 185 261 224 Royalties and production taxes 23 21 8 7 Total cash costs 241 206 269 231 Reclamation and mine closure costs 1 4 3 5 Total costs applicable to sales 242 210 272 236 Non-cash inventory adjustment -- -- -- -- Depreciation and amortization 58 31 80 80 Depreciation and amortization adjustment -- 37 -- (6) Total production costs $300 $278 $352 $310 Kalgoorlie Pajingo Nine Months ended September 30 2003 2002 2003 2002 Tons Mined (000 dry short tons) 36,229 28,334 576 472 Tons Milled/Processed 5,327 4,438 598 537 Average Ore Grade (oz/ton) 0.071 0.059 0.442 0.381 Average Mill Recovery Rate 85.2% 82.7% 96.8% 96.8% Ounces Produced (000) 309.2 223.1 258.3 203.8 Equity Ounces Produced (000) 309.2 223.1 258.3 203.8 Equity Ounces Sold (000) 309.2 221.1 258.7 208.6 Production Costs Per Ounce: Direct mining and production costs $256 $202 $122 $87 Capitalized mining & other (2) 11 (8) (3) Cash operating costs 254 213 114 84 Royalties and production taxes 9 7 11 7 Total cash costs 263 220 125 91 Reclamation and mine closure costs 3 5 -- 3 Total costs applicable to sales 266 225 125 94 Non-cash inventory adjustment -- 10 -- 4 Depreciation and amortization 23 24 80 42 Depreciation and amortization adjustment -- 4 -- 43 Total production costs $289 $263 $205 $183 Tanami Yandal Nine Months ended September 30 2003 2002 2003 2002 Tons Mined (000 dry short tons) 15,929 16,833 2,731 8,241 Tons Milled/Processed 3,446 2,722 4,010 3,416 Average Ore Grade (oz/ton) 0.141 0.144 0.117 0.136 Average Mill Recovery Rate 96.1% 96.6% 90.4% 92.1% Ounces Produced (000) 467.7 382.6 433.6 437.9 Equity Ounces Produced (000) 448.5 328.6 433.6 437.9 Equity Ounces Sold (000) 449.3 318.1 433.0 423.8 Production Costs Per Ounce: Direct mining and production costs $225 $183 $268 $211 Capitalized mining & other (7) 1 6 1 Cash operating costs 218 184 274 212 Royalties and production taxes 21 18 9 8 Total cash costs 239 202 283 220 Reclamation and mine closure costs 1 4 3 5 Total costs applicable to sales 240 206 286 225 Non-cash inventory adjustment -- 3 -- 1 Depreciation and amortization 59 28 70 80 Depreciation and amortization adjustment -- 36 -- (13) Total production costs $299 $273 $356 $293 3. Gold Production Summary - Other Zarafshan, Ovacik, Uzbekistan Turkey Three months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons) n/a n/a 2,152 1,296 Tons Milled/Processed: Leach 2,082 2,053 n/a n/a Mill n/a n/a 151 104 Average Ore Grade (oz/ton) 0.042 0.055 0.338 0.343 Average Mill Recovery Rate n/a n/a 93.7% 94.2% Ounces Produced (000) 51.6 67.1 48.0 34.1 Equity Ounces Produced (000) 51.6 67.1 48.0 34.1 Equity Ounces Sold (000) 50.2 70.3 51.5 36.6 Production Costs Per Ounce: Direct mining and production costs $151 $120 $136 $117 Capitalized mining & other 2 2 (21) (4) Cash operating costs 153 122 115 113 Royalties and production taxes -- -- 13 10 Total cash costs 153 122 128 123 Reclamation and mine closure costs 2 (3) 1 4 Total costs applicable to sales 155 119 129 127 Non-cash inventory adjustment -- -- -- -- Depreciation and amortization 49 38 82 40 Depreciation and amortization adjustment -- -- -- 65 Total production costs $204 $157 $211 $232 Martha, Minahasa, New Zealand Indonesia Three months ended September 30, 2003 2002 2003 2002 Tons Mined (000 dry short tons) 1,549 2,061 n/a n/a Tons Milled/Processed: Leach n/a n/a n/a n/a Mill 354 320 172 180 Average Ore Grade (oz/ton) 0.078 0.107 0.142 0.190 Average Mill Recovery Rate 93.9% 89.3% 93.0% 89.4% Ounces Produced (000) 26.4 30.8 22.2 33.4 Equity Ounces Produced (000) 26.3 30.8 20.9 31.5 Equity Ounces Sold (000) 26.2 27.7 23.1 28.3 Production Costs Per Ounce: Direct mining and production costs $401 $192 $173 $255 Capitalized mining & other (184) (54) 3 1 Cash operating costs 217 138 176 256 Royalties and production taxes -- -- 6 3 Total cash costs 217 138 182 259 Reclamation and mine closure costs 2 5 6 25 Total costs applicable to sales 219 143 188 284 Non-cash inventory adjustment -- -- -- -- Depreciation and amortization 129 70 97 68 Depreciation and amortization adjustment -- 54 -- -- Total production costs $348 $267 $285 $352 Zarafshan, Ovacik, Uzbekistan Turkey Nine Months ended September 30 2003 2002 2003 2002 Tons Mined (000 dry short tons) n/a n/a 4,061 3,162 Tons Milled/Processed: Leach 6,116 5,912 n/a n/a Mill n/a n/a 435 241 Average Ore Grade (oz/ton) 0.043 0.052 0.335 0.376 Average Mill Recovery Rate n/a n/a 93.6% 92.5% Ounces Produced (000) 170.1 200.8 136.1 86.5 Equity Ounces Produced (000) 170.1 200.8 136.1 86.5 Equity Ounces Sold (000) 171.9 194.0 137.7 84.6 Production Costs Per Ounce: Direct mining and production costs $146 $133 $120 $119 Capitalized mining & other 2 2 (6) (2) Cash operating costs 148 135 114 117 Royalties and production taxes -- -- 12 11 Total cash costs 148 135 126 128 Reclamation and mine closure costs 2 (2) 1 4 Total costs applicable to sales 150 133 127 132 Non-cash inventory adjustment -- -- -- 7 Depreciation and amortization 46 41 82 25 Depreciation and amortization adjustment -- -- -- 61 Total production costs $196 $174 $209 $225 Martha, Minahasa, New Zealand Indonesia Nine Months ended September 30 2003 2002 2003 2002 Tons Mined (000 dry short tons) 3,839 4,141 n/a n/a Tons Milled/Processed: Leach n/a n/a n/a n/a Mill 990 820 544 525 Average Ore Grade (oz/ton) 0.082 0.104 0.158 0.218 Average Mill Recovery Rate 91.8% 90.3% 91.1% 90.9% Ounces Produced (000) 74.5 77.6 78.4 116.3 Equity Ounces Produced (000) 72.8 77.6 73.7 109.4 Equity Ounces Sold (000) 73.5 74.3 81.2 114.1 Production Costs Per Ounce: Direct mining and production costs $331 $192 $222 $200 Capitalized mining & other (106) (60) 3 2 Cash operating costs 225 132 225 202 Royalties and production taxes -- -- 6 4 Total cash costs 225 132 231 206 Reclamation and mine closure costs 2 4 4 6 Total costs applicable to sales 227 136 235 212 Non-cash inventory adjustment -- 7 -- -- Depreciation and amortization 111 80 68 69 Depreciation and amortization adjustment -- 51 -- -- Total production costs $338 $274 $303 $281 4. Base Metal Summary - Batu Hijau and Golden Grove Three months ended Nine months ended September 30, September 30, Batu Hijau 2003 2002 2003 2002 Total tons mined (000) 60,928 67,634 174,275 185,261 Total dry tons processed (000) 12,300 14,226 36,951 39,026 Average copper grade 0.82% 0.86% 0.74% 0.73% Average recovery rate 90.7% 90.4% 89.2% 89.3% Copper pounds produced (000) 184,154 219,645 488,168 505,375 Equity copper pounds produced (000) 103,587 123,550 274,595 284,273 Equity copper pounds sold (000) 103,246 114,487 264,290 271,427 Copper price per pound $0.84 $0.62 $0.80 $0.70 Equity ounces of gold sold (000) 116.5 96.9 262.7 200.2 Equity net cash cost per pound $0.10 $0.24 $0.19 $0.31 Equity non-cash cost per pound 0.17 0.14 0.19 0.18 Equity total production cost per pound $0.27 $0.38 $0.38 $0.49 Three months ended Nine months ended September 30, September 30, Golden Grove 2003 2002 2003 2002 Total tons mined 370,199 386,003 1,063,543 951,971 Total dry tons processed 346,008 363,350 1,044,689 917,362 Average copper grade 4.68% 4.83% 4.84% 5.17% Average copper recovery rate 92.9% 87.8% 92.0% 89.5% Copper produced pounds (000) 21,891 15,078 46,991 42,927 Copper sold pounds (000) 8,711 12,594 46,167 37,669 Copper price per pound $0.77 $1.08 $0.79 $0.83 Copper cash cost per pound $0.47 $0.31 $0.54 $0.55 Average zinc grade 13.42% 15.29% 12.37% 13.81% Average zinc recovery rate 90.0% 90.1% 90.5% 84.6% Zinc produced pounds (000) 12,518 35,174 87,394 76,062 Zinc sold pounds (000) 9,504 43,455 63,132 112,837 Zinc price per pound $1.03 $0.17 $0.45 $0.27 Zinc cash cost per pound $0.69 $0.28 $0.31 $0.17 Ounces of gold sold (000) 3.6 1.2 10.4 10.3 Ounces of silver sold (000) 391.0 46.1 1,165.8 899.5 5. Reconciliation of Costs Applicable to Sales to Total Cash Costs Per Ounce and Per Pound, and Total Production Costs Per Ounce and Per Pound The total cash costs and total production costs per ounce or pound are non-GAAP performance measures that are intended to provide investors with information about the cash generating capacities and profitability of Newmont's mining operations. Newmont's management uses these measures for the same purpose and for monitoring the performance of its mining operations. These measures differ from measures determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance or liquidity determined in accordance with GAAP. These measures were developed in conjunction with gold mining companies associated with the Gold Institute in an effort to provide a level of comparability; however, Newmont's measures may not be comparable to similarly-titled measures of other companies. Three months ended Total September 30, La Golden North 2003 Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $172.2 $2.6 $3.1 $10.6 $5.3 $193.8 Minority interest -- -- -- -- -- -- Reclamation/ accretion expense (1.7) (0.1) (0.1) (0.3) (0.2) (2.4) Write-down inventories (1.9) -- -- -- -- (1.9) Other (7.8) -- -- -- -- (7.8) Total cash cost for per ounce calculations 160.8 2.5 3.0 10.3 5.1 181.7 Reclamation/ accretion expense and other 1.7 0.1 0.1 0.3 0.2 2.4 Depreciation, depletion and amortization 37.1 1.1 0.8 3.4 1.4 43.8 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $199.6 $3.7 $3.9 $14.0 $6.7 $227.9 Equity ounces sold (000) 696.9 12.6 16.5 42.8 17.4 786.2 Equity total cash cost per ounce sold $240 $196 $181 $238 $297 $239 Equity total production cost per ounce sold $298 $289 $231 $328 $388 $300 Three months ended Total September 30, Kori South 2003 Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $105.3 $10.8 $116.1 $11.7 $31.3 $41.7 Minority interest (53.3) (1.3) (54.6) -- -- -- Reclamation/ accretion expense (0.8) (0.7) (1.5) -- (0.3) (0.5) Write-down inventories -- -- -- -- -- (0.3) Other -- -- -- -- -- -- Total cash cost for per ounce calculations 51.2 8.8 60.0 11.7 31.0 40.9 Reclamation/ accretion expense and other 0.8 0.7 1.5 -- 0.3 0.4 Depreciation, depletion and amortization 48.5 1.7 50.2 8.2 2.3 12.2 Minority interest and other (21.2) (0.2) (21.4) -- -- -- Total production cost for per ounce calculations $79.3 $11.0 $90.3 $19.9 $33.6 $53.5 Equity ounces sold (000) 451.2 43.8 495.0 90.9 116.0 151.8 Equity total cash cost per ounce sold $113 $199 $121 $128 $266 $269 Equity total production cost per ounce sold $175 $250 $182 $218 $289 $352 Three months ended September 30, NFM Total Zarafshan, 2003 Tanami Australia Uzbekistan Minahasa Martha Ovacik Costs applicable to sales under GAAP $37.2 $121.9 $7.7 $4.6 $5.8 $6.7 Minority interest 0.1 0.1 -- -- 0.1 -- Reclamation/ accretion expense (0.3) (1.1) -- (0.1) (0.1) -- Write-down inventories -- (0.3) -- -- -- -- Other -- -- -- (0.3) -- -- Total cash cost for per ounce calculations 37.0 120.6 7.7 4.2 5.8 6.7 Reclamation/ accretion expense and other -- 0.6 -- 0.1 -- 0.1 Depreciation, depletion and amortization 8.8 31.5 2.5 2.4 3.3 4.2 Minority interest and other -- -- -- (0.1) -- -- Total production cost for per ounce calculations $45.8 $152.7 $10.2 $6.6 $9.1 $11.0 Equity ounces sold (000) 153.1 511.8 50.2 23.1 26.2 51.5 Equity total cash cost per ounce sold $241 $235 $153 $182 $217 $128 Equity total production cost per ounce sold $300 $298 $204 $285 $348 $211 Three months ended Total September 30, Other Total Golden Other 2003 International Gold Grove Non-Gold Consolidated Costs applicable to sales under GAAP $24.8 $456.6 $4.8 $1.5 $462.9 Minority interest 0.1 (54.4) -- -- (54.4) Reclamation/ accretion expense (0.3) (5.3) -- -- (5.3) Write-down inventories -- (2.2) (0.3) -- (2.5) Other (0.3) (8.1) (4.5) (1.5) (14.1) Total cash cost for per ounce calculations 24.3 386.6 -- -- 386.6 Reclamation/ accretion expense and other 0.2 4.7 -- -- 4.7 Depreciation, depletion and amortization 12.4 137.9 2.0 11.6 151.5 Minority interest and other (0.1) (21.5) (2.0) (11.6) (35.1) Total production cost for per ounce calculations $36.8 $507.7 -- -- $507.7 Equity ounces sold (000) 151.0 1,944.0 n/a n/a 1,944.0 Equity total cash cost per ounce sold $160 $201 n/a n/a $201 Equity total production cost per ounce sold $244 $265 n/a n/a $265 Three months ended Total September 30, La Golden North 2002 Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $184.7 $3.5 $3.0 $13.6 $3.4 $208.2 Minority interest -- -- -- -- -- -- Reclamation expense (1.5) -- -- (0.4) (0.1) (2.0) Write-down inventories (20.4) -- -- (0.2) -- (20.6) Non-cash inventory adjustment 0.1 -- -- -- -- 0.1 Other (0.3) -- -- -- -- (0.3) Total cash cost for per ounce calculations 162.6 3.5 3.0 13.0 3.3 185.4 Reclamation expense and other 1.5 -- -- 0.4 0.1 2.0 Depreciation, depletion and amortization 32.7 1.7 0.9 4.2 1.1 40.6 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $196.8 $5.2 $3.9 $17.6 $4.5 $228.0 Equity ounces sold (000) 722.0 16.3 17.7 60.4 20.0 836.4 Equity total cash cost per ounce sold $225 $214 $169 $217 $161 $222 Equity total production cost per ounce sold $273 $322 $223 $293 $218 $273 Three months ended Total September 30, Kori South 2002 Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $82.4 $11.6 $94.0 $7.8 $21.6 $40.8 Minority interest (41.1) (1.4) (42.5) -- -- -- Reclamation expense (1.4) (0.3) (1.7) (0.2) (0.4) (0.9) Write-down inventories -- -- -- -- -- (0.6) Non-cash inventory adjustment -- -- -- -- (0.1) -- Other (0.7) -- (0.7) (0.1) -- -- Total cash cost for per ounce calculations 39.2 9.9 49.1 7.5 21.1 39.3 Reclamation expense and other 1.4 0.3 1.7 0.2 0.5 0.9 Depreciation, depletion and amortization 24.6 3.5 28.1 7.9 2.8 12.6 Minority interest and other (11.5) (0.4) (11.9) -- -- -- Total production cost for per ounce calculations $53.7 $13.3 $67.0 $15.6 $24.4 $52.8 Equity ounces sold (000) 329.6 64.9 394.5 77.2 94.6 170.1 Equity total cash cost per ounce sold $119 $152 $124 $98 $224 $231 Equity total production cost per ounce sold $164 $205 $171 $203 $267 $310 Three months ended September 30, NFM Total Zarafshan, 2002 Tanami Australia Uzbekistan Minahasa Martha Ovacik Costs applicable to sales under GAAP $32.9 $103.1 $8.4 $8.8 $4.0 $4.7 Minority interest (4.6) (4.6) -- -- -- -- Reclamation expense (0.6) (2.1) 0.2 (0.8) (0.1) (0.1) Write-down inventories -- (0.6) -- (0.3) -- -- Non-cash inventory adjustment -- (0.1) -- -- -- -- Other (0.5) (0.6) -- (0.4) -- (0.1) Total cash cost for per ounce calculations 27.2 95.1 8.6 7.3 3.9 4.5 Reclamation expense and other 0.6 2.2 (0.2) 0.8 0.1 0.1 Depreciation, depletion and amortization 10.7 34.0 2.6 2.1 3.4 3.8 Minority interest and other (1.5) (1.5) -- (0.1) -- -- Total production cost for per ounce calculations $37.0 $129.8 $11.0 $10.1 $7.4 $8.4 Equity ounces sold (000) 133.4 475.3 70.3 28.3 27.7 36.6 Equity total cash cost per ounce sold $206 $201 $122 $259 $224 $123 Equity total production cost per ounce sold $278 $273 $157 $352 $267 $232 Three months ended Total Other September 30, Other Total Golden Non- 2002 International Gold Grove Kasese Gold Consolidated Costs applicable to sales under GAAP $25.9 $431.2 $8.8 $1.7 $0.7 $442.4 Minority interest -- (47.1) -- -- -- (47.1) Reclamation expense (0.8) (6.6) -- -- -- (6.6) Write-down inventories (0.3) (21.5) (0.2) -- -- (21.7) Non-cash inventory adjustment -- -- -- -- -- -- Other (0.5) (2.1) (8.6) (1.7) (0.7) (13.1) Total cash cost for per ounce calculations 24.3 353.9 -- -- -- 353.9 Reclamation expense and other 0.8 6.7 -- -- -- 6.7 Depreciation, depletion and amortization 11.9 114.6 5.6 -- 13.4 133.6 Minority interest and other (0.1) (13.5) (5.6) -- (13.4) (32.5) Total production cost for per ounce calculations $36.9 $461.7 -- -- -- $461.7 Equity ounces sold (000) 162.9 1,869.1 n/a n/a n/a 1,869.1 Equity total cash cost per ounce sold $149 $189 n/a n/a n/a $189 Equity total production cost per ounce sold $226 $247 n/a n/a n/a $247 Nine months ended Total September 30, La Golden North 2003 Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $456.1 $7.6 $8.8 $41.0 $15.4 $528.9 Minority interest -- -- -- -- -- -- Reclamation/ accretion expense (4.8) (0.2) (0.1) (1.2) (0.4) (6.7) Write-down inventories (2.9) -- -- -- -- (2.9) Other (11.0) -- -- -- -- (11.0) Total cash cost for per ounce calculations 437.4 7.4 8.7 39.8 15.0 508.3 Reclamation/ accretion expense and other 4.8 0.2 0.1 1.2 0.4 6.7 Depreciation, depletion and amortization 103.4 3.6 2.5 15.0 3.8 128.3 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $545.6 $11.2 $11.3 $56.0 $19.2 $643.3 Equity ounces sold (000) 1,865.1 42.8 50.9 161.8 50.1 2,170.7 Equity total cash cost per ounce sold $239 $172 $171 $246 $300 $238 Equity total production cost per ounce sold $299 $261 $222 $347 $384 $302 Nine months ended Total September 30, Kori South 2003 Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $274.3 $32.6 $306.9 $32.5 $83.4 $126.8 Minority interest (138.7) (3.9) (142.6) -- -- -- Reclamation/ accretion expense (2.5) (1.8) (4.3) (0.1) (1.1) (1.6) Write-down inventories -- -- -- -- (1.0) (2.7) Other -- -- -- -- -- -- Total cash cost for per ounce calculations 133.1 26.9 160.0 32.4 81.3 122.5 Reclamation/ accretion expense and other 2.5 1.8 4.3 (0.2) 1.1 1.5 Depreciation, depletion and amortization 124.4 5.6 130.0 20.7 6.9 30.2 Minority interest and other (54.3) (0.7) (55.0) -- -- -- Total production cost for per ounce calculations $205.7 $33.6 $239.3 $52.9 $89.3 $154.2 Equity ounces sold (000) 1,130.0 144.5 1,274.5 258.7 309.2 433.0 Equity total cash cost per ounce sold $118 $186 $125 $125 $263 $283 Equity total production cost per ounce sold $182 $232 $188 $205 $289 $356 Nine months ended September 30, NFM Total Zarafshan, 2003 Tanami Australia Uzbekistan Minahasa Martha Ovacik Costs applicable to sales under GAAP $114.6 $357.3 $25.7 $21.7 $19.7 $17.6 Minority interest (4.2) (4.2) -- -- (0.3) -- Reclamation/ accretion expense (0.8) (3.6) (0.2) (0.4) (0.3) (0.2) Write-down inventories (2.0) (5.7) -- (1.3) (2.6) -- Other -- -- -- (1.3) -- -- Total cash cost for per ounce calculations 107.6 343.8 25.5 18.7 16.5 17.4 Reclamation/ accretion expense and other 0.1 2.5 0.2 0.4 0.1 0.1 Depreciation, depletion and amortization 27.5 85.3 8.0 5.8 8.2 11.4 Minority interest and other (1.0) (1.0) -- (0.3) (0.1) -- Total production cost for per ounce calculations $134.2 $430.6 $33.7 $24.6 $24.7 $28.9 Equity ounces sold (000) 449.3 1,450.2 171.9 81.2 73.5 137.7 Equity total cash cost per ounce sold $239 $237 $148 $231 $225 $126 Equity total production cost per ounce sold $299 $297 $196 $303 $338 $209 Nine months ended Total September 30, Other Total Golden Other 2003 International Gold Grove Non-Gold Consolidated Costs applicable to sales under GAAP $84.7 $1,277.8 $29.7 $3.4 $1,310.9 Minority interest (0.3) (147.1) -- -- (147.1) Reclamation/ accretion expense (1.1) (15.7) -- -- (15.7) Write-down inventories (3.9) (12.5) (7.1) -- (19.6) Other (1.3) (12.3) (22.6) (3.4) (38.3) Total cash cost for per ounce calculations 78.1 1,090.2 -- -- 1,090.2 Reclamation/ accretion expense and other 0.8 14.3 -- -- 14.3 Depreciation, depletion and amortization 33.4 377.0 15.8 28.6 421.4 Minority interest and other (0.4) (56.4) (15.8) (28.6) (100.8) Total production cost for per ounce calculations $111.9 $1,425.1 -- -- $1,425.1 Equity ounces sold (000) 464.3 5,359.7 n/a n/a 5,359.7 Equity total cash cost per ounce sold $168 $205 n/a n/a $205 Equity total production cost per ounce sold $241 $268 n/a n/a $268 Nine months ended Total September 30, La Golden North 2002 Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $494.2 $8.0 $8.7 $40.9 $14.1 $565.9 Minority interest -- -- -- -- -- -- Reclamation expense (4.4) -- (0.1) (1.2) (0.4) (6.1) Write-down inventories (35.7) -- -- (0.2) -- (35.9) Non-cash inventory adjustment (1.4) -- -- -- -- (1.4) Other (0.3) -- -- -- -- (0.3) Total cash cost for per ounce calculations 452.4 8.0 8.6 39.5 13.7 522.2 Reclamation expense and other 5.9 -- 0.1 1.2 0.4 7.6 Depreciation, depletion and amortization 84.7 4.7 2.4 14.3 4.2 110.3 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $543.0 $12.7 $11.1 $55.0 $18.3 $640.1 Equity ounces sold (000) 1,927.1 44.2 48.5 201.2 71.0 2,292.0 Equity total cash cost per ounce sold $235 $180 $177 $196 $192 $228 Equity total production cost per ounce sold $282 $287 $229 $273 $257 $279 Nine months ended Total September 30, Kori South 2002 Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $221.1 $34.4 $255.5 $20.6 $52.0 $96.8 Minority interest (110.7) (4.1) (114.8) -- -- -- Reclamation expense (2.0) (0.8) (2.8) (0.6) (1.1) (2.3) Write-down inventories -- -- -- -- -- (1.0) Non-cash inventory adjustment -- -- -- (0.8) (2.2) (0.3) Other (0.7) -- (0.7) (0.3) -- (0.1) Total cash cost for per ounce calculations 107.7 29.5 137.2 18.9 48.7 93.1 Reclamation expense and other 2.0 0.8 2.8 1.4 3.3 2.6 Depreciation, depletion and amortization 85.8 10.4 96.2 17.8 6.2 28.4 Minority interest and other (39.4) (1.3) (40.7) -- -- -- Total production cost for per ounce calculations $156.1 $39.4 $195.5 $38.1 $58.2 $124.1 Equity ounces sold (000) 823.1 191.9 1,015.0 208.6 221.1 423.8 Equity total cash cost per ounce sold $131 $154 $135 $91 $220 $220 Equity total production cost per ounce sold $190 $205 $193 $183 $263 $293 Nine months ended September 30, NFM Total Zarafshan, 2002 Tanami Australia Uzbekistan Minahasa Martha Ovacik Costs applicable to sales under GAAP $78.0 $247.4 $25.8 $26.1 $10.8 $11.9 Minority interest (11.0) (11.0) -- -- -- -- Reclamation expense (1.3) (5.3) 0.4 (0.8) (0.3) (0.3) Write-down inventories -- (1.0) -- (0.3) -- -- Non-cash inventory adjustment (1.1) (4.4) -- -- (0.5) (0.6) Other (0.8) (1.2) -- (1.5) (0.1) (0.2) Total cash cost for per ounce calculations 63.8 224.5 26.2 23.5 9.9 10.8 Reclamation expense and other 2.4 9.7 (0.4) 0.8 0.8 0.9 Depreciation, depletion and amortization 23.7 76.1 8.0 8.3 9.7 7.3 Minority interest and other (3.3) (3.3) -- (0.5) -- -- Total production cost for per ounce calculations $86.6 $307.0 $33.8 $32.1 $20.4 $19.0 Equity ounces sold (000) 318.1 1,171.6 194.0 114.1 74.3 84.6 Equity total cash cost per ounce sold $202 $192 $135 $206 $132 $128 Equity total production cost per ounce sold $273 $262 $174 $281 $274 $225 Nine months ended Total Other September 30, Other Total Golden Non- 2002 International Gold Grove Kasese Gold Consolidated Costs applicable to sales under GAAP $74.6 $1,143.4 $21.8 $7.8 $0.8 $1,173.8 Minority interest -- (125.8) -- -- -- (125.8) Reclamation expense (1.0) (15.2) -- -- -- (15.2) Write-down inventories (0.3) (37.2) (0.4) -- -- (37.6) Non-cash inventory adjustment (1.1) (6.9) -- -- -- (6.9) Other (1.8) (4.0) (21.4) (7.8) (0.8) (34.0) Total cash cost for per ounce calculations 70.4 954.3 -- -- -- 954.3 Reclamation expense and other 2.1 22.2 -- -- -- 22.2 Depreciation, depletion and amortization 33.3 315.9 12.6 -- 30.9 359.4 Minority interest and other (0.5) (44.5) (12.6) -- (30.9) (88.0) Total production cost for per ounce calculations $105.3 $1,247.9 -- -- -- $1,247.9 Equity ounces sold (000) 467.0 4,945.6 n/a n/a n/a 4,945.6 Equity total cash cost per ounce sold $151 $193 n/a n/a n/a $193 Equity total production cost per ounce sold $225 $252 n/a n/a n/a $252 6. Reconciliation of Batu Hijau Costs Applicable to Sales to Equity Net Cash Costs Per Pound Three months ended Nine months ended September 30, September 30, 2003 2002 2003 2002 Costs applicable to sales under GAAP ($4,085) $18,167 $31,691 $79,514 Smelting and refining 26,734 31,109 70,533 76,696 Minority interest (11,255) (22,753) (47,924) (71,763) Reclamation/accretion expense (952) 1,286 (3,286) (622) Total cash cost for per pound calculation 10,442 27,809 51,014 83,825 Reclamation/accretion expense and other 952 (1,286) 3,286 622 Depreciation, depletion and amortization 16,158 17,489 46,651 48,442 Total production cost for per pound calculation $27,552 $44,012 $100,951 $132,889 Equity copper pounds sold (000) 103,246 114,487 264,290 271,427 Equity net cash cost per pound $0.10 $0.24 $0.19 $0.31 Equity total production cost per pound $0.27 $0.38 $0.38 $0.49 7. Reconciliation of Golden Grove Costs Applicable to Sales to Total Copper and Zinc Cash Costs Per Pound Three months ended September 30, 2003 2002 Total Zinc Total Copper Zinc Costs applicable to sales under GAAP $4,737 $418 $8,717 $1,255 $7,462 Smelting and refining 6,347 5,434 7,339 2,775 4,564 Reclamation/accretion expense (90) (17) -- -- -- Write-down of inventories (316) 747 (161) (94) (67) Total cash cost for per pound calculation 10,678 6,582 15,895 3,936 11,959 Reclamation/accretion expense and other 90 17 -- -- -- Depreciation, depletion and amortization 2,046 186 5,606 1,256 4,350 Total production cost for per pound calculation $12,814 $6,785 $21,501 $5,192 $16,309 Total pounds sold (000) n/a 9,504 n/a 12,594 43,455 Equity net cash cost per pound n/a $0.69 n/a $0.31 $0.28 Equity total production cost per pound n/a $0.71 n/a $0.41 $0.38 Nine months ended September 30, 2003 2002 Total Zinc Total Copper Zinc Costs applicable to sales under GAAP $29,670 $7,574 $21,835 $14,720 $7,115 Smelting and refining 22,682 15,524 18,877 6,530 12,347 Reclamation/accretion expense (269) (119) -- -- -- Write-down of inventories (7,095) (3,123) (418) (347) (71) Total cash cost for per pound calculation 44,988 19,856 40,294 20,903 19,391 Reclamation/accretion expense and other 269 119 -- -- -- Depreciation, depletion and amortization 15,814 6,366 12,623 7,709 4,914 Total production cost for per pound calculation $61,071 $26,341 $52,917 $28,612 $24,305 Total pounds sold (000) n/a 63,132 n/a 37,669 112,837 Equity net cash cost per pound n/a $0.31 n/a $0.55 $0.17 Equity total production cost per pound n/a $0.42 n/a $0.76 $0.22 8. Gold Hedge Position - Current Maturity Summary(1) (000 ounces) Australian Gold Hedge Books Newmont Gold Hedge Book Gold Put Gold Forward Convertible Sold Price Capped Option Sales Put Options Combination Contracts Contracts Contracts & Other Put Options Instruments Years Ozs Price Ozs Price Ozs Price Ozs Price Ozs Price (2) (2) (2) (2) (2) 2003 52 $292 -- -- -- -- -- -- -- -- 2004 203 $292 -- -- -- -- -- -- -- -- 2005 205 $292 -- -- -- -- -- -- 500 $350 2006 100 $338 -- -- -- -- -- -- -- -- 2007 20 $397 -- -- -- -- -- -- -- -- 2008 -- -- -- -- -- -- -- -- 1,000 $384 2009 -- -- -- -- -- -- -- -- 600 $381 2010 -- -- -- -- -- -- -- -- -- -- 2011 -- -- -- -- -- -- -- -- 250 $392 Total/ Average (1) 580 $304 -- -- -- -- -- -- 2,350 $377 The mark-to-market value of the Australian gold hedge books was negative $11 million at September 30, 2003. The following table shows the approximate sensitivities of the US$ mark- to-market value of the Australian gold hedge books to certain market variables as of September 30, 2003 (actual changes in the timing and amount of the following variables may differ from the assumed changes below): Market Variables Change in Variable Change in Mark-to-Market Value (millions) A$ Interest Rates +/-1.0% -/+ $0.0 US$/A$ Exchange Rates +/- US$0.01 +/-$0.0 Gold Lease Rates +/-1.0% +/-$1.1 US$ Interest Rates +/-1.0% -/+$1.2 US$ Gold Price/oz. +/-$1.00 -/+$0.2 Notes: 1. For more detailed descriptions, definitions and explanations, refer to the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2003. 2. Prices quoted are gross contract prices, which represent the gross cash flow per ounce of each contract. Not included in these prices are the additional cash outflows associated with borrowing gold over the life of the contract where the contracts are floating in nature. The rate at which gold is borrowed is determined over the life of the contract based on the prevailing market gold lease rate for the time period that the borrowing is fixed. The borrowing can be fixed for varying periods over the life of the contract. Investor Information Investor Contacts Russell Ball Telephone: (303) 837-5927 Email: russell_ball@corp.newmont.com Wendy Yang Telephone: (303) 837-6141 Email: wyang@corp.newmont.com Nicola Frazer Telephone: 61-8-8303-1756 Email: nfrazer@newmont.com.au Media Contacts Doug Hock Telephone: (303) 837-5812 Email: doughock@corp.newmont.com Danielle Martin Telephone: 61-8-8303-1911 Email: danielle.martin@newmont.com.au Corporate Address Newmont Mining Corporation 1700 Lincoln Street Denver, CO 80203 Telephone: (303) 863-7414 Facsimile: (303) 837-5837 Company Website www.newmont.com Stock Exchange Listings - Ticker New York Stock Exchange NEM Toronto Stock Exchange NMC Australian Stock Exchange NEM NYSE Share Price Performance (Q3) Jul 03 Aug 03 Sep 03 Q3 2003 High $36.29 $39.58 $42.17 $42.17 Low $31.25 $35.58 $37.90 $31.25 Last $36.10 $39.26 $39.09 $39.09 Shareholder Information Please contact the respective stock transfer agent acting as transfer agent, registrar and dividend disbursing agent for the securities listed below. Information regarding shareholder accounts, dividend payments, stock transfer and related matters for the respective securities should be directed to the transfer agent listed. For holders of Newmont Stock (NYSE:NEM) Mellon Investor Services, LLC 85 Challenger Road Ridgefield Park, NJ 07660 Toll free: (888) 216-8104 (between 8:00 a.m. and 8:00 p.m. Eastern Time) Internet: www.melloninvestor.com For holders of Newmont Exchangeable Shares (TSX: NMC) Computershare Trust Company of Canada 100 University Avenue, 9th Floor Toronto, Ontario M5J 2Y1 Canada Toll-Free: (800) 663-9097 Telephone: (416) 981-9633 Internet: caregistryinfo@computershare.com For holders of Newmont CHESS Depository Interests (CDIs trading on ASX: NEM) National Shareholder Services Pty Limited 100 Hutt Street, Adelaide 5000 South Australia Australia Telephone: 61-8-8232-0003 Facsimile: 61-8-8232-0072 The Company's third quarter earnings conference call and web cast presentation is scheduled for Wednesday, October 29, 2003 beginning at 4:00 p.m. Eastern Standard Time (2:00 p.m. Mountain Standard Time). To participate: Dial-In Number: (630) 395-0029 Leader: Russell Ball Password: Newmont The conference call will also be simultaneously carried on our web site 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 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 earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (v) statements regarding future debt repayments; (vi) estimates of future capital expenditure,tax rates and expenses; (vii) estimates of reserves, and statements regarding future exploration results and the replacement of reserves; (viii) statements regarding anticipated timing of various transactions and projects; and (ix) statements regarding future royalty revenues. 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, as well as 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 Annual Report on Form 10-K for the year ended December 31, 2002, 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 any 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- 10/29/2003 AA LAW064 /PRNewswire-FirstCall -- Oct. 29/ /END FIRST AND FINAL ADD/ /Web site: http://www.melloninvestor.com / /Web site: http://www.newmont.com / (NEM NMC.) CO: Newmont Mining Corporation ST: Colorado, Ontario IN: MNG SU: ERN CCA