-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P2yIpX0NuhcBn5lKMQk6e7UDycTlcOhdTu4fZkEf4ITDkz8/p2W4wz2v2ClxSkS7 nikOix8A2/1IvihaSAr6wg== 0000891092-04-001990.txt : 20040428 0000891092-04-001990.hdr.sgml : 20040428 20040428110812 ACCESSION NUMBER: 0000891092-04-001990 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040428 ITEM INFORMATION: FILED AS OF DATE: 20040428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEWMONT MINING CORP /DE/ CENTRAL INDEX KEY: 0001164727 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 841611629 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31240 FILM NUMBER: 04759048 BUSINESS ADDRESS: STREET 1: 1700 LINCOLN STREET CITY: DENVER STATE: CO ZIP: 80203 BUSINESS PHONE: 303-863-7414 MAIL ADDRESS: STREET 1: 1700 LINCOLN STREET CITY: DENVER STATE: CO ZIP: 80203 FORMER COMPANY: FORMER CONFORMED NAME: DELTA HOLDCO CORP DATE OF NAME CHANGE: 20020109 8-K 1 e17653_8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------------------------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 28, 2004 Newmont Mining Corporation ------------------------------------------- (Exact name of registrant as specified in its charter) Delaware ------------------------------------------- (State or Other Jurisdiction of Incorporation) 001-31240 ------------------------------------------- (Commission File Number) 84-1611629 ------------------------------------ (I.R.S. Employer Identification No. 1700 Lincoln Street, Denver, Colorado 80203 ------------------------------------------- (Address of principal executive offices) (zip code) (303) 863-7414 ------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION The following information is furnished pursuant to Item 9 "Regulation FD Disclosure" and Item 12 "Results of Operations and Financial Condition". On April 28, 2004, Newmont Mining Corporation, a Delaware corporation, issued a news release reporting its financial results for the first quarter of 2004. A copy of the news release is furnished as Exhibit 99.1 to this report. SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. By: /s/ Britt D. Banks ----------------------------------- Name: Britt D. Banks Title: Vice President, General Counsel and Secretary Dated: April 28, 2004 EXHIBIT INDEX Exhibit Number Description of Exhibits 99.1 Press Release dated April 28, 2004 EX-99.1 2 e17653ex99_1.txt PRESS RELEASE Exhibit 99.1 Newmont Mining Corporation Announces First Quarter Income Before Cumulative Effect of a Change in Accounting Principle of $133.8 Million ($0.30 Per Share) DENVER, April 28 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM) today announced first quarter income before the cumulative effect of a change in accounting principle of $133.8 million ($0.30 per share). This compares to $151.8 million ($0.38 per share) for the first quarter of 2003, which included a number of items that generated net gains, primarily related to the acquisition and integration of Franco-Nevada and Normandy Mining. During the quarter, Newmont had equity gold sales of 1.81 million ounces at total cash costs of $231 per equity ounce. A combination of higher gold prices and solid operating performance resulted in net cash provided by operating activities of $328.2 million for the quarter, an increase of 141% from the year ago quarter. Wayne W. Murdy, Chairman and Chief Executive Officer, said: "Our first quarter operating results reflect higher margins and strong cash flows, demonstrating our leverage to higher gold prices. We will continue to focus our efforts on controlling costs, particularly in Nevada, but we also recognize that higher gold prices bring opportunities to mine additional lower-grade, higher-cost ounces that are value-accretive to Newmont shareholders." First Quarter 2004 2003 Financial (in millions, except per share) Revenues $1,135.4 $748.5 Net cash provided by operating activities $328.2 $136.0 Income before cumulative effect $133.8 $151.8 Net income applicable to common shares $86.7 $117.3 Income per common share before cumulative effect $0.30 $0.38 Net income per common share $0.20 $0.29 Operating Equity gold sales (000 ounces) (1) 1,812.6 1,780.5 Average realized price ($/ounce) $413 $351 Total cash costs ($/ounce) (2) $231 $201 Total production costs ($/ounce) (2) $299 $261 1. Equity gold sales ounces are those attributable to Newmont's ownership or economic interest. 2. For a reconciliation of total cash costs per ounce and per pound and total production costs per ounce and per pound (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 First quarter net income applicable to common shares was $86.7 million ($0.20 per share), compared with net income of $117.3 million ($0.29 per share) for the first quarter of 2003. Net income for the first quarter of 2004 was impacted by a $47.1 million ($0.10 per share) non-cash, after-tax charge to recognize the cumulative effect of a change in accounting principle to reflect conforming accounting policies upon consolidation of Batu Hijau (discussed below). Net income for the first quarter of 2003 was impacted by the following: -- a $34.5 million ($0.09 per share) non-cash, after-tax charge to recognize the cumulative effect of a change in accounting principle to reflect the implementation of FAS 143, "Accounting for Asset Retirement Obligations"; -- a $42.2 million ($0.10 per share) non-cash, after-tax gain for the change in fair value of gold derivative instruments that did not qualify as "effective hedges" and were thus recognized in income; -- a net $68.0 million ($0.17 per share) non-cash, after-tax gain on the exchange of the Company's 45.7% equity investment in Echo Bay for a 13.8% interest in Kinross Gold; -- a $13.0 million ($0.03 per share) after-tax loss on the extinguishment of debt; and -- miscellaneous write-downs and legacy-site reclamation accruals totaling $20.5 million ($0.05 per share) after-tax, including a write-down of $11.0 million ($0.03 per share) relating to the Company's equity investment in Australian Magnesium Corporation. These items had the net effect of increasing first quarter 2003 net income by $42.2 million ($0.10 per share). For the first quarter of 2004, the Company sold 1,812,600 equity ounces of gold, 2% higher than the prior year quarter. The average realized price was $413 per ounce, an 18% increase over the prior year quarter. The Company generated net cash from operating activities of $328.2 million in the first quarter, after net working capital increases of $47.6 million, significantly higher than the $136.0 million generated in the first quarter of 2003. Approximately $45 million of the increase was attributable to the consolidation of Batu Hijau (discussed below). In December 2003, the FASB issued Financial Interpretation No. 46R, "Consolidation of Variable Interest Entities," pursuant to which the Company consolidated Batu Hijau effective January 1, 2004. Previously, the Company had accounted for its investment in Batu Hijau using the equity method of accounting. Upon consolidation, certain changes were necessary to conform Batu Hijau's accounting policies to Newmont's accounting policies: -- a change from units-of-production depreciation of processing plant and mining facilities to straight-line depreciation of such facilities (a non-cash, after-tax charge of $15.1 million, $0.03 per share); and -- a change from allocating costs to stockpile inventories based on mining costs per ton to allocating costs based on recoverable pounds of copper equivalent (a non-cash, after-tax charge of $32.0 million, $0.07 per share). In addition, effective January 1, 2004, the Company commenced reporting cash operating costs at Batu Hijau using co-product accounting because it believes this to be a more meaningful measure of performance for a poly- metallic orebody such as Batu Hijau. The Supplemental Information section of this release provides summarized financial information reflecting the impact of consolidating Batu Hijau on Newmont's consolidated income statement and balance sheet as of March 31, 2004. Operating Highlights -- First Quarter North America Q1 Q1 2004 2003 Equity gold sales (000 ozs) 706.6 747.4 Total cash costs ($/ounce) (1) $281 $226 * Nevada operations sold 617,400 equity ounces in the first quarter (-2%) due to a decline in average mill grade (-16%) and unscheduled down time at Mill 6, partially offset by production from Mill 5, which was shut down in the first quarter of 2003. Total cash costs of $287 per equity ounce (+27%) were negatively impacted by higher labor costs, higher fuel costs and higher unscheduled maintenance costs. Production and unit costs were adversely impacted by weather conditions in Eastern Nevada in January and February, which caused a shortfall in open pit ore mined at the Carlin and Pete pits, and resulted in the processing of lower-grade stockpiles during the quarter to make up for the shortfall. In April 2004, the Company entered into an agreement with Barrick to toll mill roaster feed through Barrick's roaster in Nevada. Annual tonnages processed under this agreement are expected to vary between 250,000 and 1 million tons. The agreement allows both companies to realize operating synergies and, in the case of Newmont, to process stockpiled material more economically. * Golden Giant in Canada sold 52,700 ounces in the first quarter (-19%) at total cash costs of $245 per ounce (-2%). Lower sales were primarily due to a 33% decrease in mill throughput due to stope sequencing and reduced mining faces at this mature mine, partially offset by a 7% increase in ore grade. Lower operating costs were offset by the appreciation of the Canadian dollar. * Holloway in Canada sold 19,200 equity ounces in the first quarter (+6%) at total cash costs of $322 per equity ounce (+10%). Higher sales were driven by a 14% increase in ore grade, with increased cash costs primarily driven by a stronger Canadian dollar. * La Herradura in Mexico sold 17,300 equity ounces in the first quarter (+4%) at unchanged total cash costs of $128 per equity ounce. South America Q1 Q1 2004 2003 Equity gold sales (000 ozs) 417.5 386.9 Total cash costs ($/ounce) (1) $135 $130 * Yanacocha in Peru sold 410,300 equity ounces in the first quarter (+22%) at total cash costs of $133 per equity ounce (+7%). Increased sales were primarily attributable to inventory drawdowns, partially offset by lower grades (-23%) and fewer tons placed on the leach pads (-15%), in accordance with the mine plan. * Kori Kollo in Bolivia sold 7,200 equity ounces (-86%). Open-pit mining activities were completed in October 2003, with gold production now derived from flushing the leach pads. Total cash costs of $266 per equity ounce were 55% higher than the year ago quarter on lower unit sales. Australia Q1 Q1 2004 2003 Equity gold sales (000 ozs) 521.3 407.8 Total cash costs ($/ounce) (1) $251 $235 * The Australian operations had a strong first quarter, selling 521,300 equity ounces (+28%), largely attributable to higher sales at Kalgoorlie and Tanami. Total cash costs of $251 per equity ounce were up 7% from the year ago quarter. In general, lower operating costs were offset by the appreciation of the Australian dollar. * Kalgoorlie sold 121,900 equity ounces (+37%) at total cash costs of $300 per equity ounce (+21%) in the first quarter. Increased sales were primarily due to inventory drawdowns, a 2% higher mill recovery rate and 9% higher grade due to greater volumes of higher-grade underground ore processed. Increased cash costs were attributable to appreciation of the Australian dollar and higher mining costs at the Mt. Charlotte underground mine and the Superpit. Higher processing costs were due in part to increased maintenance costs associated with SAG mill repairs in January. * Pajingo sold 75,200 ounces (+2%) at total cash costs of $194 per ounce (+72%) in the first quarter. Higher sales reflected inventory drawdowns, partially offset by lower grade (-13%) and lower tons milled (-4%). Increased cash costs were due to a combination of the stronger Australian dollar and higher mining costs. * Tanami sold 183,100 ounces (+74%) at total cash costs of $256 per ounce, unchanged from the year ago quarter. Sales increased primarily due to a full quarter of 100% ownership, increased ore grade (+24%) and a drawdown of inventories. * Yandal sold 141,100 ounces (+1%) at total cash costs of $231 per ounce (-16%) in the first quarter. Increased sales reflected 26% higher grade at Jundee from Westside underground ore, partially offset by the Wiluna divestiture in December 2003 and lower throughput at Bronzewing as a result of the closure of the mine during the first quarter. Lower cash costs largely reflect the divestiture of Wiluna and reduced operations at Bronzewing. * Golden Grove sold 2.3 million pounds of copper (-89%) and 45.4 million pounds of zinc (+82%) at cash costs of $0.46 (-13%) and $0.38 (+23%) per pound, respectively, in the first quarter. Reduced copper sales were primarily due to mine plan sequencing that delivered more zinc ore in the quarter, and the timing of shipments. Batu Hijau (Indonesia) Q1 Q1 2004 2003 Equity copper sales (M lbs) 73.8 69.8 Equity gold sales (000 ozs) 56.4 54.3 Total cash costs ($/lb Cu) (1, 2) $0.66 $0.42 Total cash costs ($/oz Au) (1, 2) $179 $186 * Effective January 1, 2004, the Company began consolidating Batu Hijau. In addition, during the first quarter of 2004, the Company changed to co-product cost accounting for copper and gold whereby production costs are allocated in proportion to the sales revenue generated by each product. * Batu Hijau sold 73.8 million equity pounds of copper in the first quarter (+6%) at total cash costs of $0.66 per pound (+57%). Increased copper sales were primarily attributable to higher mill throughput (+4%) and inventory increases in the year ago quarter as a result of the timing of shipments, partially offset by lower recoveries and lower grades, largely in accordance with the mine plan. Higher operating costs were incurred as a result of increased grinding costs due to harder ores, higher mining rates and higher mine maintenance costs as eight additional haul trucks were added to the fleet. In general, production in the first and fourth quarters is lower than the second and third quarters due to the sequencing of increased stripping, and thus lower grade ore delivery to the concentrator, during the rainy season. * Batu Hijau recorded an average realized copper price for the first quarter of $1.50 per pound, reflecting an average spot price of $1.24 per pound and provisional pricing and timing and other miscellaneous adjustments of $0.26 per pound. * Batu Hijau sold 56,400 equity ounces of gold, largely unchanged from the year ago quarter as higher throughput and recoveries partially offset lower grades. Total cash costs for the quarter were $179 per equity ounce. * As discussed in last quarter's release, Batu Hijau is expected to begin paying dividends in 2004 and this will result in a decrease in Newmont's reported economic interest from 56.25% to 52.875%, in recognition of the economic interest held by the project's Indonesian shareholder. While the lower economic interest was applied to reported 2003 reserves, it will only be applied to earnings when Batu Hijau reports positive retained earnings. This is expected to occur in the second half of 2004. Other Operations (3) Q1 Q1 2004 2003 Equity gold sales (000 ozs) 110.6 146.4 Total cash costs ($/ounce) (1) $215 $169 * Zarafshan in Uzbekistan sold 55,900 equity ounces (-7%) at total cash costs of $148 per ounce (+4%) in the first quarter. Lower sales reflected an increase in inventory due to the timing of shipments. * Ovacik in Turkey sold 5,900 ounces (-83%) at total cash costs of $302 per ounce (+140%) in the first quarter. Lower sales reflected recently enacted legislation that eliminates refunds of value added taxes relating to gold dore exports. Ovacik has inventoried approximately 30,000 ounces while it attempts to address this issue. Increased costs reflect lower unit sales, lower mill throughput (-9%) and lower grade (-12%), partially offset by higher recoveries. * Martha in New Zealand sold 22,600 ounces (+15%) at total cash costs of $251 per ounce (+15%) in the first quarter. Increased sales reflect higher mill throughput (+26%) and inventory draw downs, partially offset by lower grade (-31%). * Minahasa in Indonesia sold 26,200 equity ounces (-17%) at total cash costs of $307 per equity ounce (+30%) in the first quarter. Increased unit cash costs were due to reduced sales and increased reclamation and closure-related expenditures. While mining ceased at Minahasa in October 2001, the processing of stockpiled ore is expected to continue through the third quarter of 2004. 1. For a reconciliation of total cash costs per ounce and per pound and total production costs per ounce and per pound (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. 2. Reflects a change to co-product accounting. 3. Excludes Batu Hijau gold sales, which are discussed separately above. Other Highlights Cash Position At the end of the first quarter, cash and cash equivalents totaled $1.55 billion. During the first quarter, cash was utilized for: -- the repayment of long-term debt ($22.3 million); -- additions to property, plant and mine development ($167.9 million); and -- payment of common stock dividends ($22.1 million). Debt At the end of the first quarter, the Company's balance sheet reflected total outstanding debt of $1.91 billion. The increase in debt during the first quarter reflects the consolidation of Batu Hijau, which increased consolidated debt by approximately $849 million. Of this amount, $740 million is project finance debt, which is non-recourse to Newmont, with the balance of $109 million reflecting subordinated debt from an affiliate of Sumitomo Corporation, which is also non-recourse to Newmont. Newmont Capital Portfolio optimization efforts continue. During the first quarter, Newmont Capital entered into several small transactions, including: -- the acquisition of the La Carpa copper-gold property in Peru, which is located adjacent to the existing Yanacocha land package; -- the acquisition of a further 5% interest in the Martabe project in Indonesia, with an option to acquire the remaining 5% minority interest in 2005; -- the completion of this season's drilling program at the Alberta heavy oil project; and -- the sale, subject to governmental approvals, of the non-core Perama asset in Greece. Newmont Capital also manages the Company's royalty and equity portfolios. For the quarter, royalty revenues totaled $13.2 million (-9%), in-line with expectations. Project Development & Exploration The Leeville underground project in Nevada is currently on schedule for initial gold production in late 2005. The production and ventilation shafts were 780 feet (43%) and 1,006 feet (72%), respectively, from surface at the end of the quarter. The drift from the Carlin East underground mine to the Leeville ventilation shaft was approximately 90% complete at the end of the quarter. At Phoenix, the engineering, procurement and construction management (EPCM) contract was awarded in March and orders have been placed for long lead-time items. The project remains on schedule for initial gold production in 2006. At Ahafo in Ghana, the EPCM contract was awarded and long lead-time equipment tenders are being released. The initial construction contract for site access and camp infrastructure has been awarded and the contractors are mobilizing to site. Meetings with stakeholders in regard to crop compensation and land acquisition are ongoing. The project remains on schedule for initial gold production in 2006. During the first quarter of 2004, Newmont completed approximately 720,000 feet of exploration drilling, using up to 73 drill rigs. Exploration, research and development expenditures of $36.7 million were 71% higher than the year ago quarter. The guidance for exploration, research and development expenditures for 2004 was increased to between $160 million and $170 million, reflecting increased regional exploration expenses, particularly at Yanacocha, and the consolidation of Batu Hijau's exploration expenditures. 2004 Guidance The Company reaffirmed 2004 equity gold sales guidance of between 7.0 million and 7.2 million ounces. The Company now expects total cash costs of between $225 and $235 per ounce, largely attributable to higher cash costs in Nevada in the first quarter and ongoing cost pressures in respect of consumable and energy-related costs. Statements of Consolidated Income Three Months Ended March 31, 2004 2003 (unaudited, in thousands, except per share) Revenues Sales - gold, net $934,651 $714,556 Sales - base metals, net 187,626 19,433 Royalties 13,162 14,480 1,135,439 748,469 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 501,549 399,009 Base metals 73,025 15,362 Depreciation, depletion and amortization 182,024 130,593 Exploration, research and development 36,674 21,472 General and administrative 27,158 26,410 Other 5,927 22,124 826,357 614,970 Other income (expense) Gain on investments, net -- 85,318 Gain on derivative instruments, net 549 55,025 Loss on extinguishment of debt -- (19,530) Dividends, interest income, foreign currency exchange and other income 13,875 30,963 Interest expense, net of capitalized interest of $2,352 and $1,290, respectively (25,502) (29,946) (11,078) 121,830 Pre-tax income before minority interest, equity income, impairment of affiliates and cumulative effect of a change in accounting principle 298,004 255,329 Income tax expense (86,632) (62,563) Minority interest in income of subsidiaries (79,057) (37,789) Equity loss and impairment of Australian Magnesium Corporation -- (11,727) Equity income of affiliates 1,504 8,538 Income before cumulative effect of a change in accounting principle 133,819 151,788 Cumulative effect of a change in accounting principle, net of tax of $25,382 and $11,188, respectively (47,138) (34,533) Net income applicable to common shares $86,681 $117,255 Income per common share before cumulative effect of a change in accounting principle, basic and diluted $0.30 $0.38 Cumulative effect of a change in accounting principle per common share, basic and diluted (0.10) (0.09) Net income per common share, basic and diluted $0.20 $0.29 Basic weighted average common shares outstanding 442,535 401,890 Diluted weighted average common shares outstanding 446,638 404,219 Cash dividends declared per common share $0.05 $0.04 Consolidated Balance Sheets March 31, December 31, 2004 2003 (unaudited, in thousands) ASSETS Cash and cash equivalents $1,548,606 $1,314,022 Marketable securities and other short-term investments 269,241 274,593 Trade receivables 139,328 20,055 Accounts receivable 75,654 70,631 Inventories 282,678 225,719 Stockpiles and ore on leach pads 248,242 248,625 Deferred stripping costs 78,745 60,086 Deferred income tax assets 182,086 73,665 Other current assets 130,560 100,280 Current assets 2,955,140 2,387,676 Property, plant and mine development, net 3,917,785 2,347,984 Mineral interests and other intangible assets, net 1,357,843 1,379,101 Investments 24,422 733,977 Deferred stripping costs 36,488 30,293 Long-term stockpiles and ore on leach pads 490,938 305,810 Deferred income tax assets 766,841 752,408 Other long-term assets 177,854 95,367 Goodwill 3,084,686 3,042,557 Total assets $12,811,997 $11,075,173 LIABILITIES Current portion of long-term debt $380,874 $190,866 Accounts payable 216,147 163,164 Employee related benefits 114,649 136,301 Other current liabilities 477,932 368,689 Current liabilities 1,189,602 859,020 Long-term debt 1,526,879 886,633 Reclamation and remediation liabilities 405,725 362,283 Deferred revenue from sale of future production 53,841 53,841 Deferred income tax liabilities 734,951 633,135 Employee related benefits 252,114 253,726 Deferred stripping credits 76,969 -- Other long-term liabilities 357,521 295,082 Total liabilities 4,597,602 3,343,720 Minority interest in subsidiaries 741,750 346,518 STOCKHOLDERS' EQUITY Total stockholders' equity 7,472,645 7,384,935 Total liabilities and stockholders' equity $12,811,997 $11,075,173 Statement of Consolidated Cash Flows Three Months Ended March 31, 2004 2003 (unaudited, in thousands) Operating activities: Net income $86,681 $117,255 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 182,024 130,593 Accretion of accumulated reclamation obligations 6,829 5,744 Amortization of deferred stripping costs, net (15,170) (6,362) Deferred income taxes 22,569 (35,400) Foreign currency exchange loss (gain) 2,282 (27,769) Minority interest, net of dividends 49,867 37,789 Equity loss (income) and impairment of affiliates, net of dividends (375) 8,514 Write-downs of inventories, stockpiles and ore on leach pads 5,123 7,688 Cumulative effect of a change in accounting principle, net of tax 47,138 34,533 Gain on investments, net -- (85,318) Gain on derivative instruments, net (549) (55,025) Loss on extinguishment of debt -- 19,530 Gain on sale of assets and other (10,610) (5,623) (Increase) decrease in operating assets: Accounts receivable (58,624) 5,855 Inventories, stockpiles and ore on leach pads 23,389 (23,480) Other assets (15,926) (1,991) Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 2,506 61,018 Derivative instruments 1,244 (17,328) Early settlement of derivative instruments classified as cash flow hedges -- (32,779) Other liabilities (181) (1,448) Net cash provided by operating activities 328,217 135,996 Investing activities: Additions to property, plant and mine development (167,874) (81,311) Investments in affiliates -- (56,224) Cash recorded on consolidation of Batu Hijau 82,203 -- Proceeds from the sale of TVX Newmont Americas -- 170,625 Early settlement of ineffective derivative instruments (290) (4,097) Proceeds from asset sales and other 11,114 2,381 Net cash (used in) provided by investing activities (74,847) 31,374 Financing activities: Repayment of long-term debt (22,269) (182,787) Dividends paid on common (22,147) (16,089) Proceeds from stock issuance 19,029 934 Other 8,504 -- Net cash used in financing activities (16,883) (197,942) Effect of exchange rate changes on cash (1,903) 9,205 Net change in cash and cash equivalents 234,584 (21,367) Cash and cash equivalents at beginning of period 1,314,022 401,683 Cash and cash equivalents at end of period $1,548,606 $380,316 Supplemental information: Interest paid, net of amounts capitalized $20,309 $29,557 Income taxes paid $48,147 $21,560 Operating Statistics Summary North America South America Australia Three Months Ended March 31, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $307 $234 $136 $130 $240 $222 Capitalized mining and other (33) (17) (7) (4) (4) 1 Cash operating costs 274 217 129 126 236 223 Royalties and production taxes 7 9 6 4 15 12 Total cash costs (4) 281 226 135 130 251 235 Reclamation and mine closure costs 2 3 3 4 2 2 Total costs applicable to sales 283 229 138 134 253 237 Depreciation and amortization 58 56 72 54 67 60 Total production costs (4) $341 $285 $210 $188 $320 $297 Consolidated gold sales (000 ounces) 741.8 747.4 807.2 711.6 521.3 425.2 Equity gold sales (000 ounces) 706.6 747.4 417.5 386.9 521.3 407.8 Average realized price per equity ounce Other (1) Equity Investments Total and Other (2)(3) Three Months Ended March 31, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $217 $161 -- -- $240 $200 Capitalized mining and other (19) 4 -- -- (17) (8) Cash operating costs 198 165 -- -- 223 192 Royalties and production taxes 5 4 -- -- 8 9 Total cash costs (4) 203 169 -- -- 231 201 Reclamation and mine closure costs 2 2 -- -- 3 3 Total costs applicable to sales 205 171 -- -- 234 204 Depreciation and amortization 71 65 -- -- 65 57 Total production costs (4) $276 $236 -- -- $299 $261 Consolidated gold sales (000 ounces) 212.5 149.8 0.2 2.0 2,283.0 2,036.0 Equity gold sales (000 ounces) 167.0 146.4 0.2 92.0 1,812.6 1,780.5 Average realized price per equity ounce $413 $351 Copper Summary (5) Equity copper production (000 pounds) 82,906 99,420 Equity copper sales (000 pounds) 76,084 91,137 Total cash cost per equity pound $0.65 $0.53 Average realized price per pound $1.50 $0.84 (1) Other includes Batu Hijau (Indonesia), Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia) and Martha (New Zealand). (2) Equity investments comprise TVX Newmont Americas and Echo Bay Mining Limited. (3) Includes 200 and 2,000 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. (4) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (5) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. 2004 Guidance Equity Gold Total Sales Cash Costs (000 oz) ($/oz) North America Nevada 2,600 $265 Golden Giant 155 $310 Holloway 85 $330 La Herradura 70 $170 Sub-total 2,910 $267 South America Yanacocha 1,570 $135 Kori Kollo 20 $325 Sub-total 1,590 $137 Australia Kalgoorlie 440 $315 Pajingo 260 $205 Tanami 660 $275 Yandal 365 $280 Sub-total 1,725 $276 Other Batu Hijau 360 $160 Martha 120 $235 Zarafshan 190 $170 Minahasa 50 $300 Ovacik 160 $190 Sub-total 880 $188 TOTAL 7,000 - 7,200 $225 - $235 Equity Copper & Total Zinc Sales Cash Costs (million lbs) ($/lb) Batu Hijau - Copper 370 $0.60 Golden Grove - Copper 50 $0.83 Golden Grove - Zinc 150 $0.41 Financial (in millions, except tax rate) (1) Royalty revenue $48-$50 Depreciation, depletion & amortization $720-$740 Exploration, research and development $160-$170 General and administrative $100-$110 Interest expense, net $100-$105 Tax rate (assuming $400/oz gold) 25% - 30% Capital expenditures $750-$800 Notes: 1. Guidance now includes 100% of Batu Hijau, effective January 1, 2004. Sensitivities An annualized $10 change in the gold price changes annual net income by approximately $50 million and cash generated by operating activities by approximately $55 million, assuming all other factors remain constant. An annualized $0.05 change in the copper price changes annual net income by approximately $12 million and annual cash generated by operating activities by approximately $17 million, assuming all other factors remain constant. An annualized $0.01 change in the Australian dollar exchange rate changes total cash costs (on a Company-wide basis) by approximately $0.80 per ounce. Supplemental Information 1. Gold Production Summary - Americas Three Months Ended Nevada Canada (2) Yanacocha, Peru March 31, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 48,421 44,860 n/a n/a 46,110 47,460 Underground 356 406 270 336 n/a n/a Tons Milled/ Processed (000): Oxide 1,067 411 263 346 n/a n/a Refractory 2,092 2,395 n/a n/a n/a n/a Leach 3,493 3,066 n/a n/a 27,808 32,822 Average Ore Grade (oz/ ton): Oxide 0.153 0.194 0.265 0.255 n/a n/a Refractory 0.191 0.215 n/a n/a n/a n/a Leach 0.025 0.028 n/a n/a 0.021 0.027 Average Mill Recovery Rate: Oxide 76.6% 88.6% 94.9% 95.3% n/a n/a Refractory 90.8% 89.5% n/a n/a n/a n/a Ounces Produced (000): 592.5 626.3 69.1 84.5 803.6 639.4 Equity Ounces Produced (000): Oxide 126.1 73.4 69.1 84.5 n/a n/a Refractory 341.2 458.1 n/a n/a n/a n/a Leach 89.9 94.8 n/a n/a 412.6 328.3 Total 557.2 626.3 69.1 84.5 412.6 328.3 Equity Ounces Sold (000) 617.4 632.9 71.9 83.3 410.3 335.1 Production Costs Per Ounce: Direct mining and production costs $318 $235 $262 $256 $133 $121 Capitalized mining and other (39) (20) 1 2 (6) (2) Cash operating costs 279 215 263 258 127 119 Royalties and production taxes 8 11 2 1 6 5 Total cash costs 287 226 265 259 133 124 Reclamation and mine closure costs 2 2 2 6 2 2 Total costs applicable to sales 289 228 267 265 135 126 Depreciation and amortization 57 50 70 102 71 58 Total production costs $346 $278 $337 $367 $206 $184 Kori Kollo, Three Months Ended Bolivia Other (1) March 31, 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit n/a 4,398 2,627 2,758 Underground n/a n/a n/a n/a Tons Milled/ Processed (000): Oxide n/a n/a n/a n/a Refractory n/a 1,794 n/a n/a Leach n/a 1,476 989 957 Average Ore Grade (oz/ ton): Oxide n/a n/a n/a n/a Refractory n/a 0.037 n/a n/a Leach n/a 0.017 0.025 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a 64.3% n/a n/a Ounces Produced (000): 7.6 57.8 17.3 31.2 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory 6.7 37.3 n/a n/a Leach n/a 13.5 17.3 31.2 Total 6.7 50.8 17.3 31.2 Equity Ounces Sold (000) 7.2 51.8 17.3 31.2 Production Costs Per Ounce: Direct mining and production costs $261 $183 $132 $145 Capitalized mining and other (11) (11) (4) (4) Cash operating costs 250 172 128 141 Royalties and production taxes 16 -- -- 8 Total cash costs 266 172 128 149 Reclamation and mine closure costs 32 8 2 3 Total costs applicable to sales 298 180 130 152 Depreciation and amortization 129 36 68 56 Total production costs $427 $216 $198 $208 (1) Other includes La Herradura and Mesquite (2) Includes Golden Giant and Holloway 2. Gold Production Summary - Australia Kalgoorlie Pajingo Three Months Ended March 31, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 11,864 11,195 174 173 Tons Milled/Processed (000) 1,600 1,637 185 193 Average Ore Grade (oz/ton) 0.073 0.067 0.342 0.395 Average Mill Recovery Rate 87.3% 85.6% 96.3% 96.8% Ounces Produced (000) 105.9 91.8 66.2 73.3 Equity Ounces Produced (000) 105.9 91.8 66.2 73.3 Equity Ounces Sold (000) 121.9 89.0 75.2 74.0 Production Costs Per Ounce: Direct mining and production costs $297 $238 $190 $107 Capitalized mining and other (6) -- (8) (4) Cash operating costs 291 238 182 103 Royalties and production taxes 9 9 12 10 Total cash costs 300 247 194 113 Reclamation and mine closure costs 3 5 (1) -- Total costs applicable to sales 303 252 193 113 Depreciation and amortization 29 18 120 75 Total production costs $332 $270 $313 $188 Tanami Yandal Three Months Ended March 31, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 3,743 5,359 2,635 855 Tons Milled/Processed (000) 1,095 1,098 901 1,357 Average Ore Grade (oz/ton) 0.161 0.130 0.134 0.111 Average Mill Recovery Rate 95.8% 95.7% 93.3% 92.1% Ounces Produced (000) 165.4 135.4 118.9 145.1 Equity Ounces Produced (000) 165.4 116.3 118.9 145.1 Equity Ounces Sold (000) 183.1 105.5 141.1 139.3 Production Costs Per Ounce: Direct mining and production costs $235 $253 $224 $250 Capitalized mining and other (4) (16) (1) 16 Cash operating costs 231 237 223 266 Royalties and production taxes 25 20 8 9 Total cash costs 256 257 231 275 Reclamation and mine closure costs -- (2) 6 5 Total costs applicable to sales 256 255 237 280 Depreciation and amortization 55 62 87 76 Total production costs $311 $317 $324 $356 3. Gold Production Summary - Other Batu Hijau, Zarafshan, Ovacik, Three Months Ended Indonesia Uzbekistan Turkey March 31, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 57,920 51,635 n/a n/a 1,482 890 Tons Milled/ Processed (000): Leach n/a n/a 1,979 1,994 n/a n/a Mill 13,078 17,687 n/a n/a 116 127 Average Ore Grade (oz/ton) 0.009 0.013 0.047 0.044 0.272 0.307 Average Mill Recovery Rate 78.9% 77.2% n/a n/a 94.4% 93.2% Ounces Produced (000) 95.1 124.5 61.1 57.9 30.0 37.5 Equity Ounces Produced (000) 53.5 70.0 61.1 57.9 30.0 37.5 Equity Ounces Sold (000) 56.4 54.3 55.9 60.1 5.9 35.0 Production Costs Per Ounce: Direct mining and production costs $149 n/a $147 $140 $398 $108 Capitalized mining and other 20 n/a 1 2 (113) 6 Cash operating costs 169 n/a 148 142 285 114 Royalties and production taxes 10 n/a -- -- 17 12 Total cash costs 179 n/a 148 142 302 126 Reclamation and mine closure costs 2 n/a 2 2 (4) 1 Total costs applicable to sales 181 n/a 150 144 298 127 Depreciation and amortization 42 n/a 48 42 200 97 Total production costs $223 n/a $198 $186 $498 $224 Martha, Minahasa, Three Months Ended New Zealand Indonesia March 31, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 1,146 764 n/a n/a Tons Milled/ Processed (000): Leach n/a n/a n/a n/a Mill 368 293 166 185 Average Ore Grade (oz/ton) 0.066 0.096 0.152 0.179 Average Mill Recovery Rate 90.3% 90.2% 90.1% 90.0% Ounces Produced (000) 22.1 25.1 22.3 30.5 Equity Ounces Produced (000) 22.1 23.4 21.0 28.7 Equity Ounces Sold (000) 22.6 19.6 26.2 31.7 Production Costs Per Ounce: Direct mining and production costs $422 $209 $296 $228 Capitalized mining and other (171) 10 3 3 Cash operating costs 251 219 299 231 Royalties and production taxes -- -- 8 5 Total cash costs 251 219 307 236 Reclamation and mine closure costs 2 3 5 4 Total costs applicable to sales 253 222 312 240 Depreciation and amortization 135 101 96 50 Total production costs $388 $323 $408 $290 4. Base Metal Summary - Batu Hijau and Golden Grove Three Months Ended March 31, Batu Hijau 2004 (1) 2003 (1) Total tons mined (000) 57,920 51,635 Dry tons processed (000) 13,078 12,588 Average copper grade 0.64% 0.69% Average recovery rate 85.6% 87.9% Copper produced (000 lbs) 141,069 152,308 Equity copper produced (000 lbs) 79,351 85,673 Equity copper sold (000 lbs) 73,819 69,848 Realized copper price per pound $1.50 $0.84 Total cash cost per equity pound $0.66 $0.42 Noncash cost per equity pound 0.16 0.16 Total production cost per equity pound $0.82 $0.58 (1) 2003 cash and total cost per pound have been presented pro forma on a co-product basis for comparability to 2004. See below for reconciliation between co-product and by-product accounting for 2003. Three Months Ended March 31, Golden Grove 2004 2003 Total tons mined (000) 309 323 Dry tons processed (000) 307 346 Average copper grade 3.17% 5.79% Average copper recovery rate 86.6% 90.8% Copper produced (000 lbs) 3,555 13,747 Copper sold (000 lbs) 2,265 21,289 Realized copper price per pound $1.37 $0.84 Copper cash cost per pound $0.46 $0.53 Average zinc grade 10.42% 12.60% Average zinc recovery rate 90.7% 92.6% Zinc produced (000 lbs) 40,294 39,805 Zinc sold (000 lbs) 45,448 24,913 Realized zinc price per pound $0.47 $0.36 Zinc cash cost per pound $0.38 $0.31 Gold sold (000 ounces) 0.2 2.0 Silver sold (000 ounces) 13.8 223.3 Reconciliation between co-product and by-product accounting at Batu Hijau for 2003: Co-Product Method For the Three Months By-Product Ended March 31, 2003 Method Copper Gold Total (in millions, except per ounce amounts) Revenue $53,063 $53,063 $18,209 $71,272 Cash production costs $40,337 $30,032 $10,305 $40,337 By-product credits (18,907) (520) (178) (698) Total Cash Cost 21,430 29,512 10,127 39,639 Noncash costs 15,232 11,341 3,891 15,232 Total Production Costs $36,662 $40,853 $14,018 $54,871 Pounds of copper sold (000) 69,848 Ounces of gold sold (000) 54.3 Cash cost per lb./oz $0.31 $0.42 $186 Noncash cost per lb./oz 0.21 0.16 72 Total costs per lb./oz. $0.52 $0.58 $258 5. Impact of Consolidating Batu Hijau on Newmont's Consolidated Income Statement and Balance Sheet Three Months Ended March 31, 2004 Amounts Before Impact of Consolidation Consolidating Consolidated of Batu Hijau Batu Hijau Amounts (unaudited, in thousands) Revenues Sales - gold, net $899,449 $35,202 $934,651 Sales - base metals, net 15,208 172,418 187,626 Royalties 13,162 -- 13,162 927,819 207,620 1,135,439 Costs and expenses Costs applicable to sales - gold 488,094 13,455 501,549 Costs applicable to sales - base metals 8,854 64,171 73,025 Depreciation, depletion and amortization 156,491 25,533 182,024 Other costs and expenses 68,805 954 69,759 722,244 104,113 826,357 Other income (expense) Interest expense (14,474) (11,028) (25,502) Other income 14,066 358 14,424 (408) (10,670) (11,078) Pre-tax income before minority interest, equity income of affiliates and cumulative effect of a change in accounting principle 205,167 92,837 298,004 Income tax expense (53,115) (33,517) (86,632) Minority interest in income of subsidiaries (53,726) (25,331) (79,057) Equity income of affiliates 35,493 (33,989) 1,504 Income before cumulative effect of a change in accounting principle 133,819 -- 133,819 Cumulative effect of a change in accounting principle, net -- (47,138) (47,138) Net income $133,819 $(47,138) $86,681 As of March 31, 2004 Amounts Before Impact of Consolidation Consolidating Consolidated of Batu Hijau Batu Hijau Amounts (unaudited, in thousands) Current assets $2,537,876 $417,264 $2,955,140 Property, plant and mine development, net 2,378,280 1,539,505 3,917,785 Mineral interests and other intangible assets, net 1,351,284 6,559 1,357,843 Investments 756,217 (731,795) 24,422 Long-term stockpiles and ore on leach pads 263,336 227,602 490,938 Goodwill 3,084,686 -- 3,084,686 Other assets 897,575 83,608 981,183 Total Assets $11,269,254 $1,542,743 $12,811,997 Current portion of long-term debt $185,393 $195,481 $380,874 Other current liabilities 668,369 140,359 808,728 Long-term debt 873,797 653,082 1,526,879 Long-term deferred income tax liabilities 633,489 101,462 734,951 Other liabilities 1,017,369 128,801 1,146,170 Total Liabilities 3,378,417 1,219,185 4,597,602 Minority interest in subsidiaries 371,054 370,696 741,750 Total stockholders' equity 7,519,783 (47,138) 7,472,645 Total liabilities and stockholders' equity $11,269,254 $1,542,743 $12,811,997 6. Reconciliation of Costs Applicable to Sales to Total Cash Costs Per Ounce and Per Pound, and Total Production Costs Per Ounce and Per Pound (dollars in millions except per ounce amounts) 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 March 31, 2004 Total La Golden North Nevada Herradura Giant Holloway America Yanacocha Costs applicable to sales under GAAP $192.7 $2.2 $12.9 $6.2 $214.0 $111.9 Minority interest -- -- -- -- -- (56.4) Accretion expense (1.4) -- (0.1) -- (1.5) (0.8) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (14.1) -- 0.1 -- (14.0) (0.1) Total cash cost for per ounce calculations 177.2 2.2 12.9 6.2 198.5 54.6 Accretion expense and other 1.4 -- 0.1 -- 1.5 0.7 Depreciation, depletion and amortization 35.1 1.2 3.3 1.8 41.4 54.3 Minority interest and other -- -- -- -- -- (25.1) Total production cost for per ounce calculations $213.7 $3.4 $16.3 $8.0 $241.4 $84.5 Equity ounces sold (000) 617.4 17.3 52.7 19.2 706.6 410.3 Equity cash cost per ounce sold $287 $128 $245 $322 $281 $133 Equity total production cost per ounce sold $346 $198 $308 $417 $341 $206 Three Months Ended March 31, 2004 Total Kori South Kollo America Pajingo Kalgoorlie Yandal Tanami Costs applicable to sales under GAAP $2.4 $114.3 $14.7 $37.0 $33.4 $49.8 Minority interest (0.3) (56.7) -- -- -- -- Accretion expense (0.2) (1.0) (0.1) (0.4) (0.9) (0.2) Write-down of inventories -- -- -- -- -- (2.7) Purchased ore and other -- (0.1) -- -- -- -- Total cash cost for per ounce calculations 1.9 56.5 14.6 36.6 32.5 46.9 Accretion expense and other 0.2 0.9 (0.1) 0.4 0.9 -- Depreciation, depletion and amortization 1.1 55.4 9.1 3.5 12.3 10.0 Minority interest and other (0.1) (25.2) -- -- -- -- Total production cost for per ounce calculations $3.1 $87.6 $23.6 $40.5 $45.7 $56.9 Equity ounces sold (000) 7.2 417.5 75.2 121.9 141.1 183.1 Equity cash cost per ounce sold $266 $135 $194 $300 $231 $256 Equity total production cost per ounce sold $427 $210 $313 $332 $324 $311 Three Months Ended March 31, 2004 Total Batu Australia Hijau Zarafshan Minahasa Martha Ovacik Costs applicable to sales under GAAP $134.9 $13.5 $8.4 $8.7 $5.8 $1.9 Minority interest -- (6.1) -- -- -- -- Accretion expense (1.6) (0.1) (0.1) (0.1) (0.1) (0.1) Write-down of inventories (2.7) -- -- -- -- -- Purchased ore and other -- 2.8 -- (0.5) -- -- Total cash cost for per ounce calculations 130.6 10.1 8.3 8.1 5.7 1.8 Accretion expense and other 1.2 0.1 0.1 0.1 0.1 -- Depreciation, depletion and amortization 34.9 4.3 2.7 2.7 3.1 1.2 Minority interest and other -- (1.9) -- (0.2) -- -- Total production cost for per ounce calculations $166.7 $12.6 $11.1 $10.7 $8.9 $3.0 Equity ounces sold (000) 521.3 56.4 55.9 26.2 22.6 5.9 Equity cash cost per ounce sold $251 $179 $148 $307 $251 $302 Equity total production cost per ounce sold $320 $223 $198 $408 $388 $498 Three Months Ended March 31, 2004 Total Other Total International Gold Costs applicable to sales under GAAP $38.3 $501.5 Minority interest (6.1) (62.8) Accretion expense (0.5) (4.6) Write-down of inventories -- (2.7) Purchased ore and other 2.3 (11.8) Total cash cost for per ounce calculations 34.0 419.6 Accretion expense and other 0.4 4.0 Depreciation, depletion and amortization 14.0 145.7 Minority interest and other (2.1) (27.3) Total production cost for per ounce calculations $46.3 $542.0 Equity ounces sold (000) 167 1,812.4 Equity cash cost per ounce sold $203 $231 Equity total production cost per ounce sold $276 $299 Three Months Ended March 31, 2003 Total La Golden North Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $145.5 $2.6 $2.2 $16.7 $5.4 $172.4 Minority interest -- -- -- -- -- -- Accretion expense (1.6) (0.1) -- (0.5) (0.1) (2.3) Write-down of inventories (1.0) -- -- -- -- (1.0) Purchased ore and other -- -- -- -- -- -- Total cash cost for per ounce calculations 142.9 2.5 2.2 16.2 5.3 169.1 Accretion expense and other 1.6 0.1 -- 0.5 0.1 2.3 Depreciation, depletion and amortization 31.6 0.9 0.8 7.2 1.3 41.8 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $176.1 $3.5 $3.0 $23.9 $6.7 $213.2 Equity ounces sold (000) 632.9 14.6 16.6 65.2 18.1 747.4 Equity cash cost per ounce sold $226 $173 $128 $249 $294 $226 Equity total production cost per ounce sold $278 $239 $180 $366 $370 $285 Three Months Ended March 31, 2003 Total Kori South Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $85.5 $10.6 $96.1 $8.4 $22.4 $39.7 Minority interest (43.1) (1.3) (44.4) -- -- -- Accretion expense (0.8) (0.4) (1.2) -- (0.5) (0.7) Write-down of inventories -- -- -- -- -- (0.7) Purchased ore and other -- -- -- -- -- -- Total cash cost for per ounce calculations 41.6 8.9 50.5 8.4 21.9 38.3 Accretion expense and other 0.8 0.4 1.2 -- 0.5 0.7 Depreciation, depletion and amortization 35.5 2.2 37.7 5.6 1.6 10.6 Minority interest and other (16.2) (0.3) (16.5) -- -- -- Total production cost for per ounce calculations $61.7 $11.2 $72.9 $14.0 $24.0 $49.6 Equity ounces sold (000) 335.1 51.8 386.9 74.0 89.0 139.3 Equity cash cost per ounce sold $124 $172 $130 $113 $247 $275 Equity total production cost per ounce sold $184 $216 $188 $188 $270 $356 Three Months Ended March 31, 2003 Total Batu Tanami Australia Hijau(1) Zarafshan Minahasa Martha Costs applicable to sales under GAAP $31.6 $102.1 n/a $8.6 $9.4 $6.1 Minority interest (4.4) (4.4) n/a -- -- (0.3) Accretion expense 0.1 (1.1) n/a (0.1) -- (0.1) Write-down of inventories -- (0.7) n/a -- (1.3) (1.4) Purchased ore and other -- -- n/a -- (0.5) -- Total cash cost for per ounce calculations 27.3 95.9 n/a 8.5 7.6 4.3 Accretion expense and other (0.1) 1.1 n/a 0.1 -- 0.1 Depreciation, depletion and amortization 7.6 25.4 n/a 2.6 1.7 2.0 Minority interest and other (1.1) (1.1) n/a -- (0.1) -- Total production cost for per ounce calculations $33.7 $121.3 n/a $11.2 $9.2 $6.4 Equity ounces sold (000) 105.5 407.8 n/a 60.1 31.7 19.6 Equity cash cost per ounce sold $257 $235 n/a $142 $236 $219 Equity total production cost per ounce sold $317 $297 n/a $186 $290 $323 Three Months Ended March 31, 2003 Total Other Total Ovacik International Gold Costs applicable to sales under GAAP $4.4 $28.5 $399.1 Minority interest -- (0.3) (49.1) Accretion expense (0.1) (0.3) (4.9) Write-down of inventories -- (2.7) (4.4) Purchased ore and other -- (0.5) (0.5) Total cash cost for per ounce calculations 4.3 24.7 340.2 Accretion expense and other 0.1 0.3 4.9 Depreciation, depletion and amortization 3.4 9.7 114.6 Minority interest and other -- (0.1) (17.7) Total production cost for per ounce calculations $7.8 $34.6 $442.0 Equity ounces sold (000) 35.0 146.4 1,688.5 Equity cash cost per ounce sold $126 $169 $201 Equity total production cost per ounce sold $224 $236 $261 7. Reconciliation of Batu Hijau Costs Applicable to Sales to Total Production Cost Per Equity Copper Pound (in millions, except per pound) Three Months Ended March 31, 2004 (1) 2003 (1) Costs applicable to sales per financial statements $63.8 $29.3 Minority interest (29.2) (7.4) Accretion expense (0.5) (0.8) Smelting and refining 14.3 8.5 Total cash cost for per pound calculation 48.4 29.6 Accretion expense 0.5 0.8 Depreciation, depletion and amortization 21.1 18.7 Minority interest (9.2) (8.2) Total production cost for per pound calculation $60.8 $40.9 Equity copper sold (000 lbs) 73,819 69,848 Total cash cost per equity pound $0.66 $0.42 Total production cost per equity pound $0.82 $0.58 (1) 2004 and 2003 cash and total production cost per pound presented on a co-product basis. 8. Reconciliation of Golden Grove Costs Applicable to Sales to Copper and Zinc Cash Costs Per Pound (in millions, except per pound) Three Months Ended March 31, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements $9.1 $0.5 $8.6 $15.2 $9.0 $6.2 Accretion expense (0.1) -- (0.1) (0.1) -- (0.1) Write-down inventories -- -- -- (3.2) (1.4) (1.8) Smelting and refining 9.1 0.5 8.6 7.2 3.6 3.6 Total cash cost for per pound calculation $18.1 $1.0 $17.1 $19.1 $11.2 $7.9 Total sold (000 lbs) n/a 2,265 45,448 n/a 21,289 24,913 Total cash cost per pound sold n/a $0.46 $0.38 n/a $0.53 $0.31 9. Gold Hedge Position - Current Maturity Summary (1) (000 ounces) Gold Put Price Capped Option Contracts Contracts Years Ozs Price (2) Ozs Price (2) 2004 150 $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 475 $306 2,350 $377 The mark-to-market value of the gold put option contracts was negative $12.0 million at March 31, 2004. Notes: (1) For more detailed descriptions, definitions and explanations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 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. The Company's first quarter earnings conference call and web cast presentation is scheduled for Wednesday, April 28, 2004 beginning at 4:00 p.m. Eastern Daylight Time (2:00 p.m. Mountain Daylight Time). To participate: Dial-In Number: (712) 257-0014 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 Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) statements regarding 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 and total production costs; (iv) statements of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (v) estimates of future capital expenditures, expenses and tax rates; (vi) estimates regarding timing of future production or closure activities; (vii) statements regarding future exploration results and the replacement of reserves; (viii) statements regarding future asset sales or rationalization efforts; and (ix) estimates of 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, 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 2003 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. SOURCE Newmont Mining Corporation -0- 04/28/2004 /CONTACT: investors, Russell Ball, +1-303-837-5927, Russell.ball@newmont.com, Wendy Yang, +1-303-837-6141, wendy.yang@newmont.com, or media, or Doug Hock, +1-303-837-5812, doug.hock@newmont.com, all of Newmont Mining Corporation/ /Web site: http://www.newmont.com/ (NEM) CO: Newmont Mining Corporation; Franco-Nevada; Normandy Mining ST: Colorado IN: MNG SU: ERN ERP CCA -----END PRIVACY-ENHANCED MESSAGE-----