EX-99.1 2 e18589ex99_1.txt EXHIBIT 99.1 Exhibit 99.1 Newmont Mining Corporation Reports Second Quarter Net Income of $37.5 Million ($0.08 per share); Mid-Year Exploration Results Exceed Expectations DENVER, July 28 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM) today announced second quarter net income of $37.5 million ($0.08 per share). This compares to net income of $90.8 million ($0.22 per share) for the second quarter of 2003. Net income for the second quarter was impacted by non-cash asset impairment charges that decreased net income by $47.8 million ($0.11 per share). During the quarter, Newmont sold 1.64 million equity ounces of gold at total cash costs of $240 per ounce. Wayne W. Murdy, Chairman and Chief Executive Officer, said: "The decline in second quarter net income was the result of planned mine closures and divestitures, processing lower grade material and non-cash asset impairment charges. Despite lower ounces sold, cash flow generation from operations for the quarter was $243 million. For the full year, we expect gold sales of in excess of seven million ounces, with the second half's sales weighted towards the fourth quarter. Our development projects are proceeding on schedule, and our exploration results have exceeded expectations, particularly at our two projects in Ghana. We are optimistic about our ability, similar to 2003, to grow reserves from exploration in 2004." Second Quarter Six Months 2004 2003 2004 2003 Financial (in millions, except per share) Revenues $1,009.2 $736.8 $2,131.4 $1,470.8 Net cash provided by operating activities $243.1 $55.8 $567.2 $194.6 Net income applicable to common shares $37.5 $90.8 $124.2 $208.1 Net income per common share, basic $0.08 $0.22 $0.28 $0.52 Operating Equity gold sales (000 ounces)(1) 1,643.4 1,823.9 3,456.0 3,604.4 Average realized price ($/ounce) $395 $353 $404 $352 Total cash costs ($/ounce)(2) $240 $212 $235 $207 Total production costs ($/ounce)(2) $309 $277 $303 $269 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 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 Second quarter net income applicable to common shares was $37.5 million ($0.08 per share), compared with net income of $90.8 million ($0.22 per share) for the second quarter of 2003. For the first six months, net income applicable to common shares was $124.2 million ($0.28 per share), compared with net income of $208.1 million ($0.52 per share, basic) for the first half of 2003. Net income for the second quarter of 2004 was impacted by the following: -- a $16.3 million ($0.04 per share) non-cash, after-tax write-down of long-lived assets at Ovacik in Turkey; and -- a $31.5 million ($0.07 per share) non-cash, after-tax charge for an other-than-temporary decline in the value of the Company's investment in Kinross Gold Corporation. These transactions had the effect of decreasing net income for the second quarter of 2004 by $47.8 million ($0.11 per share). Net income for the second quarter of 2003 was impacted by the following: -- an $11.7 million ($0.03 per share) non-cash, after-tax gain for the change in fair value of gold derivative instruments that did not qualify as "effective hedges;" -- a net $63.9 million ($0.16 per share) non-cash, after-tax gain on the extinguishment of Newmont Yandal Operations Pty Ltd (Yandal) bonds; -- a net $53.6 million ($0.13 per share) non-cash, after-tax gain on the extinguishment of Yandal derivative liabilities on a consolidated basis; -- a $107.8 million ($0.27 per share) non-cash, after-tax equity loss and impairment of the Company's investment in Australian Magnesium Corporation; and -- other miscellaneous charges totaling $2.5 million ($0.01 per share). These transactions had the net effect of increasing net income for the second quarter of 2003 by $18.9 million ($0.04 per share). For the second quarter of 2004, the Company sold 1,643,400 equity ounces of gold, 10% lower than the second quarter of 2003. The average realized price was $395 per ounce, a 12% increase over the prior year quarter. During the first six months of 2004, the Company sold 3,456,000 equity ounces of gold, compared with 3,604,400 equity ounces sold in the first six months of 2003. The average realized price was $404 per ounce, a 15% increase over the prior year period. The Company generated net cash from operating activities of $243.1 million in the second quarter and $567.2 million for the first six months of 2004. Net cash provided by operating activities for 2003 was negatively impacted by the early settlement of derivative instruments classified as cash flow hedges and does not include consolidated cash flows from Batu Hijau, which was consolidated effective January 1, 2004. Operating Highlights - Second Quarter North America Q2 Q2 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 633.7 637.1 1,340.3 1,384.5 Total cash costs ($/ounce)(1) $276 $251 $278 $238 * Nevada operations sold 560,100 equity ounces in the second quarter (+5%), as inventory reductions, increased mill throughput and higher leach tons more than offset lower ore grades processed and associated lower recoveries. Total cash costs of $275 per ounce (+8%) were primarily attributable to processing lower grades due to stripping of laybacks at the Gold Quarry and Twin Creeks Section 30 pits. * Golden Giant in Canada sold 39,500 ounces in the second quarter (-27%) at total cash costs of $277 per ounce (+12%). Lower sales were primarily due to a planned decrease in mill throughput (-27%) as flexibility in accessing available ore continues to decline with the mine's maturity, partially offset by an increase in mill ore grade (+16%) due to more selective mining. On June 28, 2004, the Company announced a temporary shutdown for shaft repairs. The repairs are expected to be completed in August 2004. * Holloway in Canada sold 15,900 equity ounces in the second quarter (+9%) at total cash costs of $423 per ounce (+36%). Higher sales were achieved through a reduction in inventory. Increased cash costs were driven by lower than expected production, and higher manpower, steel and electricity costs. The Company expects to complete the acquisition of the nearby Holt McDermott mill from Barrick in the fourth quarter of 2004. Holloway ore is currently being toll treated at this facility. * La Herradura in Mexico sold 18,200 equity ounces in the second quarter (+2%) at total cash costs of $162 per equity ounce (-19%). Cash costs for the second quarter decreased due to an increase in leach pad inventories. South America Q2 Q2 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 323.3 392.6 740.8 779.5 Total cash costs ($/ounce)(1) $150 $127 $142 $129 * Yanacocha in Peru sold 317,700 equity ounces in the second quarter (-8%) at total cash costs of $147 per ounce (+25%). Lower second quarter sales were due to a planned reduction in tons placed on the pads (-7%) due to increased stripping, and lower ore grades (-27%), primarily from the La Quinua deposit. Higher cash costs reflected higher diesel prices and consumption, higher labor and related costs, the increased stripping and lower production. At La Quinua, gold recovery is taking longer than originally anticipated, but the Company does not expect a reduction in ultimate recovery. * Kori Kollo in Bolivia sold 5,600 equity ounces (-89%) at total cash costs of $305 per ounce (+62%). Open-pit mining activities were completed in October 2003 and residual gold production is being derived from rinsing the leach pads. Australia Q2 Q2 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 378.0 530.6 899.3 938.4 Total cash costs ($/ounce)(1) $302 $241 $272 $238 * The Australian operations sold 378,000 equity ounces (-29%) in the second quarter, largely attributable to lower sales at Pajingo and Tanami, the divestiture of Wiluna in December 2003 and the closure of Bronzewing in March 2004. Total cash costs of $302 per equity ounce were up 25% from the year ago quarter, largely due to lower production and a stronger Australian dollar. * Kalgoorlie sold 98,500 equity ounces (-5%) at total cash costs of $318 per equity ounce (+17%) in the second quarter. Lower sales reflected the mining sequence and lower equipment availability, which resulted in lower grade ore (-12%) processed in the quarter. Higher cash costs were primarily attributable to lower production, and higher processing consumables and site administration costs. In early July, a shovel was lost following a fire caused by a failure in the fuel lines. The joint venture is actively seeking to replace the shovel. If the replacement is delayed, the 2004 production plan should not be significantly affected, but reduced development work could impact the 2005 production plan. * Pajingo sold 48,600 ounces (-48%) at total cash costs of $290 per ounce (+120%) in the second quarter. Lower sales reflected a ground disturbance during the quarter that limited mining activities and required the processing of low-grade stockpiles. Higher cash costs reflected lower production due to the processing of lower grade stockpiles. Access restrictions have now been resolved. * Tanami sold 158,900 ounces (-17%) at total cash costs of $277 per ounce (+21%) in the second quarter. Lower sales reflected lower ore grades (-15%) with lower grade material being mined at the Granites in accordance with changes in the mining sequence, and lower grades and recovery at Groundrush. Higher cash costs reflected increased underground backfill costs and lower production. * Yandal sold 72,000 ounces (-49%) at total cash costs of $341 per ounce (+12%) in the second quarter. Lower sales reflect the Wiluna divestiture and the closure of Bronzewing. Higher cash costs reflected lower production, higher open-pit mining costs and higher overhead charges. * Golden Grove sold 19.9 million pounds of copper (+23%) and 19.7 million pounds of zinc (-31%) at cash costs of $0.89 (+48%) and $0.37 (+95%) per pound, respectively, in the second quarter. Higher cash costs reflected lower silver by-product credits, and higher development and ground support costs. Batu Hijau (Indonesia) Q2 Q2 YTD YTD 2004 2003 2004 2003 Equity copper sales (M lbs) 106.8 91.2 180.7 161.0 Equity gold sales (000 ozs) 111.2 91.9 167.6 146.2 Total cash costs ($/lb Cu)(1,2) $0.46 $0.38 $0.54 $0.40 Total cash costs ($/oz Au)(1,2) $174 n/a $175 n/a * Effective January 1, 2004, the Company began consolidating Batu Hijau and 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. As a result, reported gold cash costs per ounce are sensitive to movements in the copper price. * Batu Hijau sold 106.8 million equity pounds of copper in the second quarter (+17%) at total cash costs of $0.46 per pound. Increased copper sales reflect increased throughput (+12%), reflecting crusher circuit modifications completed in late 2003, improved operational efficiencies, increased ore grades (+15%) and increased recovery (+2%), offset by an inventory increase due to the timing of shipments. Increased costs reflected higher mine operating and maintenance costs, increased crushing and grinding costs and higher treatment and refining costs. The realized copper price for the second quarter was $1.06, a 38% increase over the second quarter of 2003. * Batu Hijau sold 111,200 equity ounces of gold (+21%) at total cash costs of $174 per ounce in the second quarter. Increased gold sales reflected increased throughput (+12%) and gold grades (+24%), offset by an increase in inventory. * Batu Hijau commenced dividend payments during the second quarter and this will result in a decrease in Newmont's reported economic interest from 56.25% to 52.875%, in recognition of the economic interest held by the project's Indonesian shareholder. While the lower economic interest was applied to reported 2003 year-end copper and gold reserves, it will only be applied to earnings when Batu Hijau reports positive retained earnings, which is expected in September 2004. Other Operations Q2 Q2 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 192.1 166.9 302.7 313.3 Total cash costs ($/ounce)(1) $191 $175 $200 $172 * Zarafshan in Uzbekistan sold 68,900 equity ounces (+12%) at total cash costs of $144 per ounce (-4%) in the second quarter. Increased sales were primarily due to a reduction in inventory. * Ovacik in Turkey sold 69,500 ounces (+36%) at total cash costs of $193 per ounce (+57%) in the second quarter. Increased sales reflected the sale of accumulated bullion inventories, partially offset by lower mill throughput (-20%). Increased cash costs were driven by increased stripping, lower grades and lower tons milled, partially offset by increased recoveries. * Martha in New Zealand sold 30,100 ounces (+9%) at total cash costs of $206 per ounce (-13%) in the second quarter. Increased sales reflected increased ore grades (+41%), partially offset by lower recoveries. Lower cash costs reflected increased silver by-product credits, lower maintenance costs and higher production. * Minahasa in Indonesia sold 23,600 equity ounces (-11%) at total cash costs of $302 per ounce (+13%) in the second quarter. 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 co-product accounting for 2003 and 2004. Other Highlights Cash and Debt At the end of the second quarter, cash and cash equivalents totaled $1.47 billion and outstanding debt totaled $1.76 billion. Of the outstanding debt, $805.2 million is Batu Hijau debt that is non-recourse to Newmont. During the second quarter, the Company eliminated $124.1 million in infrastructure bonds assumed as part of the Normandy acquisition in 2002. Newmont Capital Newmont Capital manages the Company's royalty, dividend and equity portfolios. For the second quarter, royalty and dividend income was $15.4 million, compared to $10.5 million for the year ago quarter. The increase was mostly due to higher oil and gas prices. For the first six months, royalty and dividend income was $28.5 million, compared with $24.9 million for the first half of 2003. During the second quarter, Newmont Capital entered into several transactions, including the purchase of marketable equity securities for approximately $94 million. Asset rationalization and portfolio optimization efforts continue, with agreements entered into for: -- the possible sale, subject to various financing, governmental, legal and regulatory approvals, of the Ovacik mine in Western Turkey; -- the sale, subject to various approvals, of the recently closed Bronzewing mine in Western Australia; and -- the purchase of the Holt McDermott mill and mill-related facilities in Ontario, Canada from Barrick. Project Development & Exploration The Leeville underground project in Nevada is on schedule for initial gold production in late 2005. The production and ventilation shafts were 1,095 feet (59% complete) and 1,365 feet (94% complete), respectively, from surface at the end of the second quarter. The drift from the Carlin East underground mine to the Leeville ventilation shaft was approximately 97% complete at the end of the second quarter. The capital cost estimate has increased from approximately $190 million to approximately $205 million, attributable in part to increased dewatering requirements which resulted in the installation of two additional dewatering wells and pumps. At Phoenix in Nevada, engineering is 12% complete and civil construction is expected to commence in early 2005. The project remains on schedule for initial gold production in 2006. At Ahafo in Ghana, the EPCM contract has been awarded and long lead-time equipment is being ordered. The initial construction contract for site access and camp infrastructure was awarded and construction has commenced. Meetings with stakeholders on crop and land compensation are progressing well. The project remains on schedule for initial gold production in 2006. At Akyem in Ghana, an updated feasibility study is in progress. Completion of permitting and license requirements is expected by year-end and a development decision is expected in late 2004 or early 2005. At Minas Conga in Peru, this year's drilling program is essentially complete. The feasibility study is ongoing and several trade-off studies are in progress. The estimated project cost for 2004 is $18 million, all of which is being expensed. At Boddington in Australia, the feasibility study update is being actively progressed by the three joint venture partners, with the aim of completing the update by mid-2005. Current activities include finalizing additional metallurgical testwork, refining the geologic model and preparing updated cost and schedule estimates. During the second quarter, Newmont completed approximately 775,000 feet of exploration drilling. Exploration, research and development expenditures of $48.2 million in the second quarter were 57% higher than the year ago quarter. The guidance for exploration, research and development expenditures for 2004 has been increased to between $180 million and $200 million on a consolidated basis, reflecting expanded feasibility study work at Minas Conga in Peru, Akyem in Ghana and at Martabe in Indonesia, as well as increased drilling at Phoenix in Nevada and Yanacocha in Peru. Exploration activities in the first half of 2004 have produced promising results and the Company is optimistic that it will be able to grow reserves from exploration in 2004. Reserve additions are possible from Ahafo and Akyem in Ghana, Martabe in Indonesia, and Phoenix and Gold Quarry in Nevada. Positive drilling results from beneath the Akyem deposit indicate the potential to deepen the current reserve pit. At Ahafo, drilling to test extensions of the Kenyase East, Kenyase Central and Area E deposits has identified significant, continuous zones of gold mineralization at all three deposits that extend beyond the reported 2003 year-end reserve pits. At Martabe in Indonesia, this year's drilling program is focused on advancing the Purnama and Baskara deposits into reserves. Completion of the resource model and feasibility study is expected by the end of the year. In Nevada, drilling has expanded the mineralization at Dos Equis, an extension of the Gold Quarry open-pit deposit. Drilling continues to intercept significant zones of oxide leach mineralization, which will augment future pit expansions. Drilling at Phoenix has provided encouraging results from the Minnie pit, with an expanded drilling program in the main Phoenix deposit at the Fortitude pit and Box Canyon area currently underway. 2004 Guidance The Company reaffirmed 2004 equity gold sales guidance of between 7.0 million and 7.2 million ounces and total cash costs of between $225 and $235 per ounce. Equity gold sales for the second half of 2004 are weighted towards the fourth quarter, particularly in Nevada and at Yanacocha in Peru. Statements of Consolidated Income Three Months Ended June 30, 2004 2003 (unaudited, in thousands, except per share) Revenues Sales - gold, net $800,590 $724,026 Sales - base metals, net 208,581 12,735 1,009,171 736,761 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 464,144 422,245 Base metals 93,438 9,973 Depreciation, depletion and amortization 173,156 139,337 Exploration, research and development 48,226 30,621 General and administrative 30,493 31,292 Write-down of long-lived assets 16,300 1,794 Other 8,435 3,296 834,192 638,558 Other income (expense) Loss on investments, net (41,299) (603) Gain on derivative instruments, net 958 16,644 Gain on extinguishment of NYOL bonds, net -- 94,414 Gain on extinguishment of NYOL derivative liability, net -- 76,578 Loss on extinguishment of debt (222) -- Royalty and dividend income 15,356 10,468 Interest income, foreign currency exchange and other income 4,718 32,675 Interest expense, net of capitalized interest of $2,546 and $1,758, respectively (24,931) (22,669) (45,420) 207,507 Pre-tax income before minority interest, equity income and impairment of affiliates 129,559 305,710 Income tax expense (31,310) (89,038) Minority interest in income of subsidiaries (60,858) (35,807) Equity loss and impairment of Australian Magnesium Corporation -- (107,758) Equity income of affiliates 105 17,740 Net income applicable to common shares $37,496 $90,847 Net income per common share, basic and diluted $0.08 $0.22 Basic weighted average common shares outstanding 443,145 405,388 Diluted weighted average common shares outstanding 446,324 408,242 Cash dividends declared per common share $0.075 $0.04 Statement of Consolidated Operations Six Months Ended June 30, 2004 2003 (unaudited, in thousands, except per share) Revenues Sales - gold, net $1,735,241 $1,438,582 Sales - base metals, net 396,207 32,168 2,131,448 1,470,750 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 965,693 821,254 Base metals 166,463 25,335 Depreciation, depletion and amortization 355,180 269,930 Exploration, research and development 84,900 52,093 General and administrative 57,651 57,702 Write-down of long-lived assets 16,300 1,794 Other 14,362 25,420 1,660,549 1,253,528 Other income (expense) (Loss) gain on investments, net (39,494) 84,715 Gain on derivative instruments, net 1,507 71,669 Gain on extinguishment of NYOL bonds, net -- 94,414 Gain on extinguishment of NYOL derivative liability, net -- 76,578 Loss on extinguishment of debt (222) (19,530) Royalty and dividend income 28,518 24,948 Interest income, foreign currency exchange and other income 16,788 63,638 Interest expense, net of capitalized interest of $4,898 and $3,048, respectively (50,433) (52,615) (43,336) 343,817 Pre-tax income before minority interest, equity income, impairment of affiliates and cumulative effect of a change in accounting principle 427,563 561,039 Income tax expense (117,942) (151,601) Minority interest in income of subsidiaries (139,915) (73,596) Equity loss and impairment of Australian Magnesium Corporation -- (119,485) Equity income of affiliates 1,609 26,278 Income before cumulative effect of a change in accounting principle 171,315 242,635 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 $124,177 $208,102 Income per common share before cumulative effect of a change in accounting principle, basic $0.39 $0.60 Cumulative effect of a change in accounting principle per common share, basic (0.11) (0.08) Net income per common share, basic $0.28 $0.52 Income per common share before cumulative effect of a change in accounting principle, diluted $0.39 $0.60 Cumulative effect of a change in accounting principle per common share, diluted (0.11) (0.09) Net income per common share, diluted $0.28 $0.51 Basic weighted average common shares outstanding 442,840 403,648 Diluted weighted average common shares outstanding 446,278 406,305 Cash dividends declared per common share $0.125 $0.08 Consolidated Balance Sheets June 30, December 31, 2004 2003 (unaudited, in thousands) ASSETS Cash and cash equivalents $1,474,825 $1,314,022 Marketable securities and other short-term investments 201,933 274,593 Trade receivables 75,022 20,055 Accounts receivable 113,436 70,631 Inventories 259,134 225,719 Stockpiles and ore on leach pads 210,820 248,625 Deferred stripping costs 59,363 60,086 Deferred income tax assets 257,597 73,665 Other current assets 62,863 100,280 Current assets 2,714,993 2,387,676 Property, plant and mine development, net 5,268,246 3,715,457 Investments 24,220 733,977 Deferred stripping costs 74,296 30,293 Long-term stockpiles and ore on leach pads 541,732 305,810 Deferred income tax assets 708,383 752,408 Other long-term assets 187,057 106,995 Goodwill 3,088,592 3,042,557 Total assets $12,607,519 $11,075,173 LIABILITIES Current portion of long-term debt $289,793 $190,866 Accounts payable 221,874 163,164 Employee related benefits 91,905 136,301 Other current liabilities 407,543 368,689 Current liabilities 1,011,115 859,020 Long-term debt 1,466,066 886,633 Reclamation and remediation liabilities 401,879 362,283 Deferred revenue from sale of future production 51,244 53,841 Deferred income tax liabilities 744,835 633,135 Employee related benefits 256,757 253,726 Advanced stripping costs 74,127 -- Other long-term liabilities 343,648 295,082 Total liabilities 4,349,671 3,343,720 Minority interest in subsidiaries 762,855 346,518 STOCKHOLDERS' EQUITY Total stockholders' equity 7,494,993 7,384,935 Total liabilities and stockholders' equity $12,607,519 $11,075,173 Statement of Consolidated Cash Flows Three Months Ended June 30, 2004 2003 (unaudited, in thousands) Operating activities: Net income $37,496 $90,847 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 173,156 139,337 Accretion of accumulated reclamation obligations 6,025 5,576 Amortization of deferred stripping costs, net (1,306) (7,752) Deferred income taxes (8,101) 44,145 Foreign currency exchange loss (gain) 7,994 (27,178) Minority interest, net of distributions of $36.6 million and $29.2 million, respectively 24,228 6,617 Equity (income) loss and impairment of affiliates, net of dividends 256 90,795 Write-downs of inventories, stockpiles and ore on leach pads 6,426 10,253 Write-downs of long-lived assets 16,300 1,794 Cumulative effect of a change in accounting principle, net of tax -- -- Loss (gain) on investments, net 41,299 603 Gain on derivative instruments, net (958) (16,644) Gain on extinguishment of NYOL bonds, net -- (94,414) Gain on extinguishment of NYOL derivatives liability, net -- (76,578) Loss on extinguishment of debt 222 -- Gain on sale of assets and other 2,368 (6,820) (Increase) decrease in operating assets: Accounts receivable 44,030 2,145 Inventories, stockpiles and ore on leach pads (9,670) (2,094) Other assets 10,991 9,323 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (81,645) (20,114) Derivative instruments (9,225) 4,393 Early settlement of derivative instruments classified as cash flow hedges -- (87,209) Other liabilities (16,802) (11,250) Net cash provided by operating activities 243,084 55,775 Investing activities: Additions to property, plant and mine development (187,164) (136,380) Investment in marketable equity securities (93,720) -- Advances to joint venture and affiliates, net -- 10,021 Cash recorded upon consolidation of Batu Hijau -- -- Proceeds from the sale of TVX Newmont Americas -- 9,375 Early settlement of ineffective derivative instruments -- (26,056) Cash consideration for acquisition of minority interests -- (11,195) Proceeds from asset sales and other 1,754 260 Net cash used in investing activities (279,130) (153,975) Financing activities: Proceeds from long-term debt 37,715 115,000 Repayment of long-term debt (54,631) (139,573) Dividends paid on common stock (33,226) (16,219) Proceeds from stock issuance 7,050 23,917 Change in restricted cash 10,740 -- Net cash used in financing activities (32,352) (16,875) Effect of exchange rate changes on cash (5,383) 9,500 Net change in cash and cash equivalents (73,781) (105,575) Cash and cash equivalents at beginning of period 1,548,606 380,316 Cash and cash equivalents at end of period $1,474,825 $274,741 Supplemental information: Interest paid, net of amounts capitalized $30,780 $37,740 Income taxes paid $103,397 $88,907 Statement of Consolidated Cash Flows Six Months Ended June 30, 2004 2003 (unaudited, in thousands) Operating activities: Net income $124,177 $208,102 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 355,180 269,930 Accretion of accumulated reclamation obligations 12,854 11,320 Amortization of deferred stripping costs, net (16,476) (14,114) Deferred income taxes 14,468 8,745 Foreign currency exchange loss (gain) 8,457 (51,884) Minority interest, net of distributions of $65.8 million and $29.2 million, respectively 74,095 44,406 Equity (income) loss and impairment of affiliates, net of dividends (119) 99,309 Write-downs of inventories, stockpiles and ore on leach pads 11,549 17,941 Write-downs of long-lived assets 16,300 1,794 Cumulative effect of a change in accounting principle, net of tax 47,138 34,533 Loss (gain) on investments, net 39,494 (84,715) Gain on derivative instruments, net (1,507) (71,669) Gain on extinguishment of NYOL bonds, net -- (94,414) Gain on extinguishment of NYOL derivatives liability, net -- (76,578) Loss on extinguishment of debt 222 19,530 Gain on sale of assets and other (6,437) (12,443) (Increase) decrease in operating assets: Accounts receivable (14,594) 8,000 Inventories, stockpiles and ore on leach pads 13,719 (25,574) Other assets (4,935) 7,332 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (81,471) 40,656 Derivative instruments (7,981) (12,935) Early settlement of derivative instruments classified as cash flow hedges -- (119,988) Other liabilities (16,983) (12,698) Net cash provided by operating activities 567,150 194,586 Investing activities: Additions to property, plant and mine development (353,406) (219,101) Investment in marketable equity securities (93,720) -- Advances to joint venture and affiliates, net -- (46,203) Cash recorded upon consolidation of Batu Hijau 82,203 -- Proceeds from the sale of TVX Newmont Americas -- 180,000 Early settlement of ineffective derivative instruments (290) (30,153) Cash consideration for acquisition of minority interests -- (11,195) Proceeds from asset sales and other 12,868 2,641 Net cash used in investing activities (352,345) (124,011) Financing activities: Proceeds from long-term debt 37,715 115,000 Repayment of long-term debt (76,900) (322,360) Dividends paid on common stock (55,373) (32,308) Proceeds from stock issuance 26,079 24,851 Change in restricted cash 19,244 -- Net cash used in financing activities (49,235) (214,817) Effect of exchange rate changes on cash (4,767) 17,300 Net change in cash and cash equivalents 160,803 (126,942) Cash and cash equivalents at beginning of period 1,314,022 401,683 Cash and cash equivalents at end of period $1,474,825 $274,741 Supplemental information: Interest paid, net of amounts capitalized $51,089 $67,297 Income taxes paid $151,544 $110,467 Operating Statistics Summary Three Months North America South America Australia Ended June 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $308 $262 $150 $127 $281 $227 Capitalized mining and other (38) (19) (6) (5) 7 -- Cash operating costs 270 243 144 122 288 227 Royalties and production taxes 6 8 6 5 14 14 Total cash costs (4) 276 251 150 127 302 241 Reclamation and mine closure costs 2 4 3 3 3 1 Total costs applicable to sales 278 255 153 130 305 242 Depreciation and amortization 59 68 83 64 65 53 Total production costs (4) $337 $323 $236 $194 $370 $295 Consolidated gold sales (000 ounces) 658.9 637.1 625.1 724.7 378.0 530.6 Equity gold sales (000 ounces) 633.7 637.1 323.3 392.6 378.0 530.6 Other (1) Equity Investments Total Three Months Ended and Other (2) (3) June 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $180 $189 -- -- $247 $213 Capitalized mining and other (1) (18) -- -- (15) (9) Cash operating costs 179 171 -- -- 232 204 Royalties and production taxes 6 4 -- -- 8 8 Total cash costs (4) 185 175 -- -- 240 212 Reclamation and mine closure costs 1 2 -- -- 2 3 Total costs applicable to sales 186 177 -- -- 242 215 Depreciation and amortization 65 66 -- -- 67 62 Total production costs (4) $251 $243 -- -- $309 $277 Consolidated gold sales (000 ounces) 391.3 168.5 5.1 4.8 2,058.4 2,065.7 Equity gold sales (000 ounces) 303.3 166.9 5.1 96.7 1,643.4 1,823.9 Average realized price per equity ounce $395 $353 Copper Summary (5) Equity copper production (000 pounds) 129,095 96,687 Equity copper sales (000 pounds) 126,771 107,362 Total cash cost per equity pound $0.53 $0.60 Average realized price per pound $1.08 $0.75 (1) Other includes Batu Hijau (Indonesia) (2004 only), Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia) and Martha (New Zealand). (2) Equity investments for 2003 only is Batu Hijau. (3) Includes 5,100 and 4,800 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. Six Months Ended North America South America Australia June 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $308 $247 $142 $128 $257 $225 Capitalized mining and other (36) (18) (6) (4) 1 -- Cash operating costs 272 229 136 124 258 225 Royalties and production taxes 6 9 6 5 14 13 Total cash costs (4) 278 238 142 129 272 238 Reclamation and mine closure costs 3 3 2 3 3 2 Total costs applicable to sales 281 241 144 132 275 240 Depreciation and amortization 58 61 77 59 66 56 Total production costs (4) $339 $302 $221 $191 $341 $296 Consolidated gold sales (000 ounces) 1,400.7 1,384.5 1,432.3 1,436.3 899.3 955.8 Equity gold sales (000 ounces) 1,340.3 1,384.5 740.8 779.5 899.3 938.4 Other (1) Equity Investments Total Six Months Ended and Other (2) (3) June 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $193 $176 -- -- $243 $207 Capitalized mining and other (7) (8) -- -- (16) (9) Cash operating costs 186 168 -- -- 227 198 Royalties and production taxes 5 4 -- -- 8 9 Total cash costs (4) 191 172 -- -- 235 207 Reclamation and mine closure costs 1 2 -- -- 3 2 Total costs applicable to sales 192 174 -- -- 238 209 Depreciation and amortization 68 66 -- -- 65 60 Total production costs (4) $260 $240 -- -- $303 $269 Consolidated gold sales (000 ounces) 603.8 318.3 5.3 6.8 4,341.4 4,101.7 Equity gold sales (000 ounces) 470.3 313.3 5.3 188.7 3,456.0 3,604.4 Average realized price per equity ounce $404 $352 Copper Summary (5) Equity copper production (000 pounds) 212,002 196,107 Equity copper sales (000 pounds) 202,855 198,500 Total cash cost per equity pound $0.57 $0.56 Average realized price per pound $1.24 $0.80 (1) Other includes Batu Hijau (Indonesia) (2004 only), Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia) and Martha (New Zealand). (2) Equity investments comprise Batu Hijau (2003 only), TVX Newmont Americas and Echo Bay Mining Limited. (3) Includes 5,300 and 6,800 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. (4) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (5) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. 2004 Guidance Equity Gold Total Sales Cash Costs (000 oz) ($/oz) North America Nevada 2,500 $280 Golden Giant 145 $310 Holloway 80 $330 La Herradura 70 $170 Sub-total 2,795 $280 South America Yanacocha 1,540 $135 Kori Kollo 20 $315 Sub-total 1,560 $138 Australia (1) Kalgoorlie 440 $305 Pajingo 275 $190 Tanami 650 $275 Yandal 365 $280 Sub-total 1,730 $270 Other Batu Hijau 380 $170 Martha 120 $210 Zarafshan 200 $160 Minahasa 70 $270 Ovacik (2) 170 $195 Sub-total 940 $185 TOTAL (3) 7,000-7,200 $225-$235 Equity Copper & Total Zinc Sales Cash Costs (million lbs) ($/lb) Batu Hijau - Copper 380 $0.53 Golden Grove - Copper 40 $0.85 Golden Grove - Zinc 135 $0.41 Consolidated Financial (in millions, except tax rate) Royalty revenue $52-$57 Depreciation, depletion & amortization $710-$730 Exploration, research and development $180-$200 - Exploration $115-$125 - Advanced projects $42-$47 - Merchant banking $8-$10 - Research, development and other $15-$18 General and administrative $100-$110 Interest expense, net $100-$105 Tax rate (assuming $400/oz gold) 23%-28% Capital expenditures $750-$800 Notes: 1. Total cash costs are based on an A$1 = $0.69 exchange rate assumption for the second half of 2004. 2. Based on 100% ownership for the full year. There is a preliminary agreement in place for the sale of Ovacik. 3. Excludes Golden Grove by-product sales of approximately 20,000 ounces. 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 June 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 52,026 42,929 n/a n/a 51,926 53,988 Underground 351 436 256 323 n/a n/a Tons Milled/Processed (000): Oxide 975 348 263 322 n/a n/a Refractory 2,262 2,115 n/a n/a n/a n/a Leach 5,583 4,537 n/a n/a 37,358 39,971 Average Ore Grade (oz/ ton): Oxide 0.125 0.191 0.224 0.213 n/a n/a Refractory 0.189 0.213 n/a n/a n/a n/a Leach 0.022 0.031 n/a n/a 0.021 0.029 Average Mill Recovery Rate: Oxide 81.5% 86.1% 94.0% 94.9% n/a n/a Refractory 90.3% 91.3% n/a n/a n/a n/a Ounces Produced (000): 566.7 536.9 55.2 67.2 612.0 682.1 Equity Ounces Produced (000): Oxide 100.3 56.9 55.2 67.2 n/a n/a Refractory 362.0 388.1 n/a n/a n/a n/a Leach 79.1 91.9 n/a n/a 314.3 350.3 Total 541.4 536.9 55.2 67.2 314.3 350.3 Equity Ounces Sold (000) 560.1 535.3 55.4 68.4 317.7 343.7 Production Costs Per Ounce: Direct mining and production costs $312 $267 $313 $260 $147 $117 Capitalized mining and other (43) (21) 2 1 (6) (4) Cash operating costs 269 246 315 261 141 113 Royalties and production taxes 6 8 4 1 6 5 Total cash costs 275 254 319 262 147 118 Reclamation and mine closure costs 3 3 2 8 2 2 Total costs applicable to sales 278 257 321 270 149 120 Depreciation and amortization 56 66 87 81 83 69 Total production costs $334 $323 $408 $351 $232 $189 Kori Kollo, Three Months Ended Bolivia Other (1) June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit n/a 2,894 2,888 3,118 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 1,842 n/a n/a Leach n/a 1,242 1,126 1,060 Average Ore Grade (oz/ ton): Oxide n/a n/a n/a n/a Refractory n/a 0.038 n/a n/a Leach n/a 0.017 0.027 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a 61.8% n/a n/a Ounces Produced (000): 6.9 55.2 18.2 33.4 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory n/a 37.9 n/a n/a Leach 6.1 10.8 18.2 33.4 Total 6.1 48.7 18.2 33.4 Equity Ounces Sold (000) 5.6 48.9 18.2 33.4 Production Costs Per Ounce: Direct mining and production costs $299 $199 $157 $179 Capitalized mining and other (11) (11) 5 (5) Cash operating costs 288 188 162 174 Royalties and production taxes 17 -- -- 5 Total cash costs 305 188 162 179 Reclamation and mine closure costs 42 13 1 3 Total costs applicable to sales 347 201 163 182 Depreciation and amortization 86 32 58 74 Total production costs $433 $233 $221 $256 (1) Other includes La Herradura in 2004 and La Herradura and Mesquite in 2003 (2) Includes Golden Giant and Holloway Six Months Ended Nevada Canada (2) Yanacocha, Peru June 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 100,447 87,789 n/a n/a 98,036 101,448 Underground 707 842 526 659 n/a n/a Tons Milled/Processed (000): Oxide 2,042 759 526 668 n/a n/a Refractory 4,354 4,510 n/a n/a n/a n/a Leach 9,076 7,603 n/a n/a 65,166 72,793 Average Ore Grade (oz/ ton): Oxide 0.139 0.193 0.245 0.235 n/a n/a Refractory 0.190 0.214 n/a n/a n/a n/a Leach 0.023 0.030 n/a n/a 0.021 0.028 Average Mill Recovery Rate: Oxide 78.7% 87.5% 94.5% 95.1% n/a n/a Refractory 90.6% 90.3% n/a n/a n/a n/a Ounces Produced (000): 1,159.1 1,163.2 124.3 151.7 1,415.6 1,321.5 Equity Ounces Produced (000): Oxide 226.5 130.3 124.3 151.7 n/a n/a Refractory 703.1 846.2 n/a n/a n/a n/a Leach 169.0 186.7 n/a n/a 726.9 678.6 Total 1,098.6 1,163.2 124.3 151.7 726.9 678.6 Equity Ounces Sold (000) 1,177.5 1,168.2 127.3 151.7 728.0 678.8 Production Costs Per Ounce: Direct mining and production costs $315 $250 $285 $258 $140 $119 Capitalized mining and other (41) (21) 1 1 (7) (3) Cash operating costs 274 229 286 259 133 116 Royalties and production taxes 7 10 3 1 6 5 Total cash costs 281 239 289 260 139 121 Reclamation and mine closure costs 3 2 1 7 2 2 Total costs applicable to sales 284 241 290 267 141 123 Depreciation and amortization 56 58 78 92 76 63 Total production costs $340 $299 $368 $359 $217 $186 Kori Kollo, Six Months Ended Bolivia Other (1) June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit n/a 6,213 5,516 5,876 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 3,636 n/a n/a Leach n/a 2,718 2,114 2,017 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 0.026 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a 63.1% n/a n/a Ounces Produced (000): 14.5 113.0 35.5 64.6 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory n/a 75.2 n/a n/a Leach 12.8 24.3 35.5 64.6 Total 12.8 99.5 35.5 64.6 Equity Ounces Sold (000) 12.8 100.7 35.5 64.6 Production Costs Per Ounce: Direct mining and production costs $277 $191 $145 $163 Capitalized mining and other (10) (11) -- (5) Cash operating costs 267 180 145 158 Royalties and production taxes 16 -- -- 6 Total cash costs 283 180 145 164 Reclamation and mine closure costs 36 10 2 3 Total costs applicable to sales 319 190 147 167 Depreciation and amortization 111 34 63 66 Total production costs $430 $224 $210 $233 (1) Other includes La Herradura in 2004 and La Herradura and Mesquite in 2003 (2) Includes Golden Giant and Holloway 2. Gold Production Summary - Australia Three Months Ended Kalgoorlie Pajingo Tanami Yandal June 30, 2004 2003 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 11,615 11,856 136 199 4,687 5,622 1,948 874 Tons Milled/ Processed (000) 1,833 1,807 207 201 1,116 1,134 659 1,259 Average Ore Grade (oz/ton) 0.066 0.076 0.224 0.464 0.140 0.165 0.110 0.120 Average Mill Recovery Rate 85.3% 86.0% 96.2% 96.9% 94.7% 96.7% 92.0% 89.1% Ounces Produced (000) 98.8 101.8 47.1 93.8 152.3 181.0 69.4 137.8 Equity Ounces Produced (000) 98.8 101.8 47.1 93.8 152.3 180.9 69.4 137.8 Equity Ounces Sold (000) 98.5 104.2 48.6 93.8 158.9 190.7 72.0 141.9 Production Costs Per Ounce: Direct mining and production costs $307 $240 $288 $124 $239 $217 $335 $298 Capitalized mining and other 1 22 (7) (4) 17 (8) (1) (2) Cash operating costs 308 262 281 120 256 209 334 296 Royalties and production taxes 10 10 9 12 21 20 7 9 Total cash costs 318 272 290 132 277 229 341 305 Reclamation and mine closure costs 5 3 2 (1) 3 2 4 3 Total costs applicable to sales 323 275 292 131 280 231 345 308 Depreciation and amortization 39 29 126 73 63 55 62 52 Total production costs $362 $304 $418 $204 $343 $286 $407 $360 Six Months Ended Kalgoorlie Pajingo Tanami Yandal June 30, 2004 2003 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 23,479 23,051 310 372 8,430 10,981 4,583 1,729 Tons Milled/ Processed (000) 3,433 3,444 392 394 2,211 2,232 1,560 2,616 Average Ore Grade (oz/ton) 0.069 0.071 0.280 0.431 0.150 0.148 0.124 0.115 Average Mill Recovery Rate 86.3% 85.8% 96.2% 96.8% 95.3% 96.3% 92.8% 90.6% Ounces Produced (000) 204.7 193.6 113.3 167.1 317.7 316.4 188.3 282.9 Equity Ounces Produced (000) 204.7 193.6 113.3 167.1 317.7 297.2 188.3 282.9 Equity Ounces Sold (000) 220.4 193.2 123.8 167.8 342.0 296.2 213.1 281.2 Production Costs Per Ounce: Direct mining and production costs $302 $239 $228 $116 $236 $229 $261 $274 Capitalized mining and other (3) 12 (7) (3) 7 (11) (1) 7 Cash operating costs 299 251 221 113 243 218 260 281 Royalties and production taxes 9 10 11 11 23 20 8 9 Total cash costs 308 261 232 124 266 238 268 290 Reclamation and mine closure costs 4 3 -- (1) 1 1 5 4 Total costs applicable to sales 312 264 232 123 267 239 273 294 Depreciation and amortization 33 24 122 74 59 59 79 64 Total production costs $345 $288 $354 $197 $326 $298 $352 $358 3. Gold Production Summary - Other Batu Hijau, Zarafshan, Ovacik, Three Months Indonesia Uzbekistan Turkey Ended June 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 54,393 61,712 n/a n/a 2,092 1,019 Tons Milled/Processed (000): Leach n/a n/a 1,965 2,040 n/a n/a Mill 13,528 12,063 n/a n/a 125 157 Average Ore Grade (oz/ton) 0.019 0.015 0.045 0.044 0.347 0.355 Average Mill Recovery Rate 79.4% 80.1% n/a n/a 95.5% 93.7% Ounces Produced (000) 204.8 147.8 60.7 60.6 41.1 50.6 Equity Ounces Produced (000) 115.2 83.2 60.7 60.6 41.1 50.6 Equity Ounces Sold (000) 111.2 91.9 68.9 61.6 69.5 51.2 Production Costs Per Ounce: Direct mining and production costs $136 n/a $143 $148 $192 $113 Capitalized mining and other 30 n/a 1 2 (12) (1) Cash operating costs 166 n/a 144 150 180 112 Royalties and production taxes 8 n/a -- -- 13 11 Total cash costs 174 n/a 144 150 193 123 Reclamation and mine closure costs 1 n/a 1 2 2 1 Total costs applicable to sales 175 n/a 145 152 195 124 Depreciation and amortization 42 n/a 45 47 125 74 Total production costs $217 n/a $190 $199 $320 $198 Martha, Minahasa, Three Months Ended New Zealand Indonesia June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 1,229 1,526 n/a n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 343 343 170 187 Average Ore Grade (oz/ton) 0.103 0.073 0.158 0.151 Average Mill Recovery Rate 90.8% 91.4% 90.1% 90.8% Ounces Produced (000) 30.5 23.0 24.5 25.7 Equity Ounces Produced (000) 30.5 23.1 23.0 24.1 Equity Ounces Sold (000) 30.1 27.7 23.6 26.4 Production Costs Per Ounce: Direct mining and production costs $299 $356 $308 $259 Capitalized mining and other (93) (119) 3 3 Cash operating costs 206 237 311 262 Royalties and production taxes -- -- (9) 5 Total cash costs 206 237 302 267 Reclamation and mine closure costs 3 2 (6) 5 Total costs applicable to sales 209 239 296 272 Depreciation and amortization 108 100 5 61 Total production costs $317 $339 $301 $333 Batu Hijau, Zarafshan, Ovacik, Six Months Ended Indonesia Uzbekistan Turkey June 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 112,313 113,347 n/a n/a 3,573 1,909 Tons Milled/ Processed (000): Leach n/a n/a 3,944 4,034 n/a n/a Mill 26,606 24,651 n/a n/a 241 284 Average Ore Grade (oz/ton) 0.014 0.014 0.046 0.044 0.311 0.334 Average Mill Recovery Rate 79.2% 78.7% n/a n/a 95.0% 93.5% Ounces Produced (000) 299.9 272.3 121.8 118.5 71.1 88.1 Equity Ounces Produced (000) 168.7 153.2 121.8 118.5 71.1 88.1 Equity Ounces Sold (000) 167.6 146.2 124.8 121.7 75.4 86.2 Production Costs Per Ounce: Direct mining and production costs $140 n/a $144 $144 $208 $111 Capitalized mining and other 27 n/a 2 2 (20) 2 Cash operating costs 167 n/a 146 146 188 113 Royalties and production taxes 8 n/a -- -- 14 12 Total cash costs 175 n/a 146 146 202 125 Reclamation and mine closure costs 2 n/a 1 2 1 -- Total costs applicable to sales 177 n/a 147 148 203 125 Depreciation and amortization 42 n/a 47 45 131 83 Total production costs $219 n/a $194 $193 $334 $208 Martha, Minahasa, Six Months Ended New Zealand Indonesia June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 2,374 2,290 n/a n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 712 636 336 372 Average Ore Grade (oz/ton) 0.084 0.083 0.155 0.165 Average Mill Recovery Rate 90.6% 90.8% 90.1% 90.4% Ounces Produced (000) 52.6 48.1 46.8 56.2 Equity Ounces Produced (000) 52.6 46.5 44.0 52.8 Equity Ounces Sold (000) 52.7 47.3 49.8 58.1 Production Costs Per Ounce: Direct mining and production costs $352 $293 $302 $242 Capitalized mining and other (127) (64) 2 3 Cash operating costs 225 229 304 245 Royalties and production taxes -- -- -- 5 Total cash costs 225 229 304 250 Reclamation and mine closure costs 3 3 -- 4 Total costs applicable to sales 228 232 304 254 Depreciation and amortization 120 100 53 56 Total production costs $348 $332 $357 $310 4. Base Metal Summary - Batu Hijau and Golden Grove Three Months Ended Six Months Ended June 30, June 30, Batu Hijau 2004 (1) 2003 (1) 2004 (1) 2003 (1) Total tons mined (000) 54,393 61,712 112,313 113,347 Dry tons processed (000) 13,528 12,063 26,606 24,651 Average copper grade 0.82% 0.71% 0.73% 0.70% Average recovery rate 90.4% 88.7% 88.3% 88.3% Copper produced (000 lbs) 200,735 151,706 341,804 304,014 Equity copper produced (000 lbs) 112,913 85,335 192,265 171,008 Equity copper sold (000 lbs) 106,848 91,195 180,667 161,044 Realized copper price per pound $1.06 $0.77 $1.24 $0.77 Total cash cost per equity pound $0.46 $0.38 $0.54 $0.40 Noncash cost per equity pound 0.12 0.14 0.14 0.15 Total production cost per equity pound $0.58 $0.52 $0.68 $0.55 (1) 2003 cash and total cost per pound have been presented pro forma on a co-product basis for comparability to 2004. Three Months Ended Six Months Ended June 30, June 30, Golden Grove 2004 2003 2004 2003 Total tons mined (000) 380 370 689 693 Dry tons processed (000) 368 353 674 699 Average copper grade 3.64% 4.27% 3.56% 5.00% Average copper recovery rate 87.3% 91.8% 87.2% 91.3% Copper produced (000 lbs) 16,182 11,352 19,737 25,099 Copper sold (000 lbs) 19,923 16,167 22,188 37,456 Realized copper price per pound $1.22 $0.75 $1.24 $0.80 Copper cash cost per pound $0.89 $0.60 $0.84 $0.56 Average zinc grade 10.55% 11.82% 10.46% 12.21% Average zinc recovery rate 87.3% 88.4% 89.6% 90.6% Zinc produced (000 lbs) 18,783 35,071 59,077 74,876 Zinc sold (000 lbs) 19,670 28,715 65,118 53,628 Realized zinc price per pound $0.47 $0.34 $0.47 $0.35 Zinc cash cost per pound $0.37 $0.19 $0.37 $0.25 Gold sold (000 ounces) 5.2 4.8 5.3 6.8 Silver sold (000 ounces) 299.9 551.5 313.7 774.8 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 (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 June 30, 2004 Total La Golden North Nevada Herradura Giant Holloway America Yanacocha Costs applicable to sales under GAAP $162.2 $3.0 $11.0 $6.6 $182.8 $96.0 Minority interest -- -- -- -- -- (48.6) Accretion expense (1.3) -- -- -- (1.3) (0.7) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (6.8) -- -- 0.1 (6.7) -- Total cash cost for per ounce calculations 154.1 3.0 11.0 6.7 174.8 46.7 Accretion expense and other 1.3 -- -- -- 1.3 0.8 Depreciation, depletion and amortization 31.6 1.0 3.2 1.6 37.4 47.9 Minority interest and other -- -- -- -- -- (21.6) Total production cost for per ounce calculations $187.0 $4.0 $14.2 $8.3 $213.5 $73.8 Equity ounces sold (000) 560.1 18.2 39.5 15.9 633.7 317.7 Equity cash cost per ounce sold $275 $162 $277 $423 $276 $147 Equity total production cost per ounce sold $334 $221 $361 $524 $337 $232 Three Months Ended June 30, 2004 Total Kori South Kollo America Pajingo Kalgoorlie Yandal Tanami Costs applicable to sales under GAAP $4.6 $100.6 $14.6 $31.8 $25.1 $44.4 Minority interest (0.5) (49.1) -- -- -- -- Accretion expense (0.3) (1.0) (0.1) (0.5) (0.2) (0.4) Write-down of inventories (2.1) (2.1) (0.5) -- (0.2) -- Purchased ore and other -- -- -- -- -- -- Total cash cost for per ounce calculations 1.7 48.4 14.0 31.3 24.7 44.0 Accretion expense and other 0.3 1.1 0.1 0.5 0.2 0.4 Depreciation, depletion and amortization 0.5 48.4 6.1 3.9 4.4 10.0 Minority interest and other (0.1) (21.7) -- -- -- -- Total production cost for per ounce calculations $2.4 $76.2 $20.2 $35.7 $29.3 $54.4 Equity ounces sold (000) 5.6 323.3 48.6 98.5 72.0 158.9 Equity cash cost per ounce sold $305 $150 $290 $318 $341 $277 Equity total production cost per ounce sold $433 $236 $418 $362 $407 $343 Three Months Ended June 30, 2004 Total Batu Australia Hijau Zarafshan Minahasa Martha Ovacik Costs applicable to sales under GAAP $115.9 $27.2 $10.1 $7.7 $6.3 $13.5 Minority interest -- (12.4) -- -- -- -- Accretion expense (1.2) (0.2) -- 0.1 (0.1) (0.1) Write-down of inventories (0.7) -- -- (0.2) -- -- Purchased ore and other -- 4.6 (0.1) (0.5) -- -- Total cash cost for per ounce calculations 114.0 19.2 10.0 7.1 6.2 13.4 Accretion expense and other 1.2 0.2 -- (0.1) 0.1 0.1 Depreciation, depletion and amortization 24.4 8.2 3.1 0.1 3.2 8.7 Minority interest and other -- (3.6) -- -- -- -- Total production cost for per ounce calculations $139.6 $24.0 $13.1 $7.1 $9.5 $22.2 Equity ounces sold (000) 378.0 111.2 68.9 23.6 30.1 69.5 Equity cash cost per ounce sold $302 $174 $144 $302 $206 $193 Equity total production cost per ounce sold $370 $217 $190 $301 $317 $320 Three Months Ended June 30, 2004 Total Other Total International Gold Costs applicable to sales under GAAP $64.8 $464.1 Minority interest (12.4) (61.5) Accretion expense (0.3) (3.8) Write-down of inventories (0.2) (3.0) Purchased ore and other 4.0 (2.7) Total cash cost for per ounce calculations 55.9 393.1 Accretion expense and other 0.3 3.9 Depreciation, depletion and amortization 23.3 133.5 Minority interest and other (3.6) (25.3) Total production cost for per ounce calculations $75.9 $505.2 Equity ounces sold (000) 303.3 1,638.3 Equity cash cost per ounce sold $185 $240 Equity total production cost per ounce sold $251 $309 Three Months Ended June 30, 2003 Total La Golden North Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $138.4 $2.4 $3.5 $13.8 $4.7 $162.8 Minority interest -- -- -- -- -- -- Accretion expense (1.5) - - (0.5) (0.1) (2.1) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (3.2) -- -- -- -- (3.2) Total cash cost for per ounce calculations 133.7 2.4 3.5 13.3 4.6 157.5 Accretion expense and other 1.5 -- -- 0.4 0.1 2.0 Depreciation, depletion and amortization 34.7 1.6 0.9 4.4 1.1 42.7 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $169.9 $4.0 $4.4 $18.1 $5.8 $202.2 Equity ounces sold (000) 535.3 15.6 17.8 53.8 14.6 637.1 Equity cash cost per ounce sold $254 $153 $201 $248 $310 $251 Equity total production cost per ounce sold $323 $260 $253 $338 $396 $323 Three Months Ended June 30, 2003 Total Kori South Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $83.5 $11.2 $94.7 $12.4 $29.7 $45.4 Minority interest (42.3) (1.3) (43.6) -- -- -- Accretion expense (0.9) (0.7) (1.6) (0.1) (0.3) (0.4) Write-down of inventories -- -- -- -- (1.0) (1.7) Purchased ore and other -- -- -- -- -- -- Total cash cost for per ounce calculations 40.3 9.2 49.5 12.3 28.4 43.3 Accretion expense and other 0.9 0.7 1.6 (0.1) 0.3 0.4 Depreciation, depletion and amortization 40.4 1.7 42.1 6.9 3.0 7.4 Minority interest and other (16.9) (0.2) (17.1) -- -- -- Total production cost for per ounce calculations $64.7 $11.4 $76.1 $19.1 $31.7 $51.1 Equity ounces sold (000) 343.7 48.9 392.6 93.8 104.2 141.9 Equity cash cost per ounce sold $118 $188 $127 $132 $272 $305 Equity total production cost per ounce sold $189 $233 $194 $204 $304 $360 Three Months Ended June 30, 2003 Total Batu Tanami Australia Hijau(1) Zarafshan Minahasa Martha Costs applicable to sales under GAAP $45.8 $133.3 n/a $9.4 $7.7 $7.8 Minority interest 0.1 0.1 n/a -- -- (0.1) Accretion expense (0.6) (1.4) n/a (0.1) (0.3) (0.1) Write-down of inventories (2.0) (4.7) n/a -- -- (1.2) Purchased ore and other -- -- n/a -- (0.5) -- Total cash cost for per ounce calculations 43.3 127.3 n/a 9.3 6.9 6.4 Accretion expense and other 0.2 0.8 n/a 0.1 0.3 -- Depreciation, depletion and amortization 11.1 28.4 n/a 2.9 1.7 2.9 Minority interest and other 0.1 0.1 n/a -- (0.1) (0.1) Total production cost for per ounce calculations $54.7 $156.6 n/a $12.3 $8.8 $9.2 Equity ounces sold (000) 190.7 530.6 n/a 61.6 26.4 27.7 Equity cash cost per ounce sold $229 $241 n/a $150 $267 $237 Equity total production cost per ounce sold $286 $295 n/a $199 $333 $339 Three Months Ended June 30, 2003 Total Other Total Ovacik International Gold Costs applicable to sales under GAAP $6.5 $31.4 $422.2 Minority interest -- (0.1) (43.6) Accretion expense -- (0.5) (5.6) Write-down of inventories -- (1.2) (5.9) Purchased ore and other -- (0.5) (3.7) Total cash cost for per ounce calculations 6.5 29.1 363.4 Accretion expense and other (0.1) 0.3 4.7 Depreciation, depletion and amortization 3.8 11.3 124.5 Minority interest and other -- (0.2) (17.2) Total production cost for per ounce calculations $10.2 $40.5 $475.4 Equity ounces sold (000) 51.2 166.9 1,727.2 Equity cash cost per ounce sold $123 $175 $212 Equity total production cost per ounce sold $198 $243 $277 Six Months Ended June 30, 2004 Total La Golden North Nevada Herradura Giant Holloway America Yanacocha Costs applicable to sales under GAAP $354.9 $5.2 $23.9 $12.8 $396.8 $207.9 Minority interest -- -- -- -- -- (105.0) Accretion expense (2.7) -- (0.1) -- (2.8) (1.5) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (20.9) -- 0.1 0.1 (20.7) (0.1) Total cash cost for per ounce calculations 331.3 5.2 23.9 12.9 373.3 101.3 Accretion expense and other 2.7 -- 0.1 -- 2.8 1.5 Depreciation, depletion and amortization 66.7 2.2 6.5 3.4 78.8 102.2 Minority interest and other -- -- -- -- -- (46.7) Total production cost for per ounce calculations $400.7 $7.4 $30.5 $16.3 $454.9 $158.3 Equity ounces sold (000) 1,177.5 35.5 92.2 35.1 1,340.3 728.0 Equity cash cost per ounce sold $281 $145 $259 $368 $278 $139 Equity total production cost per ounce sold $340 $210 $331 $466 $339 $217 Six Months Ended June 30, 2004 Total Kori South Kollo America Pajingo Kalgoorlie Yandal Tanami Costs applicable to sales under GAAP $7.0 $214.9 $29.3 $68.8 $58.5 $94.2 Minority interest (0.8) (105.8) -- -- -- -- Accretion expense (0.5) (2.0) (0.2) (0.9) (1.1) (0.6) Write-down of inventories (2.1) (2.1) (0.5) -- (0.2) (2.7) Purchased ore and other -- (0.1) -- -- -- -- Total cash cost for per ounce calculations 3.6 104.9 28.6 67.9 57.2 90.9 Accretion expense and other 0.5 2.0 -- 0.9 1.1 0.4 Depreciation, depletion and amortization 1.6 103.8 15.2 7.4 16.7 20.0 Minority interest and other (0.2) (46.9) -- -- -- -- Total production cost for per ounce calculations $5.5 $163.8 $43.8 $76.2 $75.0 $111.3 Equity ounces sold (000) 12.8 740.8 123.8 220.4 213.1 342.0 Equity cash cost per ounce sold $283 $142 $232 $308 $268 $266 Equity total production cost per ounce sold $430 $221 $354 $345 $352 $326 Six Months Ended June 30, 2004 Total Batu Australia Hijau Zarafshan Minahasa Martha Ovacik Costs applicable to sales under GAAP $250.8 $40.8 $18.5 $16.4 $12.1 $15.4 Minority interest -- (18.5) -- -- -- -- Accretion expense (2.8) (0.3) (0.1) -- (0.2) (0.2) Write-down of inventories (3.4) -- -- (0.2) -- -- Purchased ore and other -- 7.3 (0.1) (1.0) -- -- Total cash cost for per ounce calculations 244.6 29.3 18.3 15.2 11.9 15.2 Accretion expense and other 2.4 0.3 0.1 -- 0.2 0.1 Depreciation, depletion and amortization 59.3 12.5 5.8 2.8 6.3 9.9 Minority interest and other -- (5.5) -- (0.2) -- -- Total production cost for per ounce calculations $306.3 $36.6 $24.2 $17.8 $18.4 $25.2 Equity ounces sold (000) 899.3 167.6 124.8 49.8 52.7 75.4 Equity cash cost per ounce sold $272 $175 $146 $304 $225 $202 Equity total production cost per ounce sold $341 $219 $194 $357 $348 $334 Six Months Ended June 30, 2004 Total Other Total International Gold Costs applicable to sales under GAAP $103.2 $965.7 Minority interest (18.5) (124.3) Accretion expense (0.8) (8.4) Write-down of inventories (0.2) (5.7) Purchased ore and other 6.2 (14.6) Total cash cost for per ounce calculations 89.9 812.7 Accretion expense and other 0.7 7.9 Depreciation, depletion and amortization 37.3 279.2 Minority interest and other (5.7) (52.6) Total production cost for per ounce calculations $122.2 $1,047.2 Equity ounces sold (000) 470.3 3,450.7 Equity cash cost per ounce sold $191 $235 Equity total production cost per ounce sold $260 $303 Six Months Ended June 30, 2003 Total La Golden North Nevada Mesquite Herradura Giant Holloway America Costs applicable to sales under GAAP $283.9 $5.0 $5.7 $30.5 $10.1 $335.2 Minority interest -- -- -- -- -- -- Accretion expense (3.1) (0.1) - (1.0) (0.2) (4.4) Write-down of inventories (1.0) -- -- -- -- (1.0) Purchased ore and other (3.2) -- -- -- -- (3.2) Total cash cost for per ounce calculations 276.6 4.9 5.7 29.5 9.9 326.6 Accretion expense and other 3.1 0.1 -- 0.9 0.2 4.3 Depreciation, depletion and amortization 66.3 2.5 1.7 11.6 2.4 84.5 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $346.0 $7.5 $7.4 $42.0 $12.5 $415.4 Equity ounces sold (000) 1,168.2 30.2 34.4 119.0 32.7 1,384.5 Equity cash cost per ounce sold $239 $163 $166 $249 $301 $238 Equity total production cost per ounce sold $299 $250 $218 $353 $382 $302 Six Months Ended June 30, 2003 Total Kori South Yanacocha Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP $169.0 $21.8 $190.8 $20.8 $52.1 $85.1 Minority interest (85.4) (2.6) (88.0) -- -- -- Accretion expense (1.7) (1.1) (2.8) (0.1) (0.8) (1.1) Write-down of inventories -- -- -- -- (1.0) (2.4) Purchased ore and other -- -- -- -- -- -- Total cash cost for per ounce calculations 81.9 18.1 100.0 20.7 50.3 81.6 Accretion expense and other 1.7 1.1 2.8 (0.1) 0.8 1.1 Depreciation, depletion and amortization 75.9 3.9 79.8 12.5 4.6 18.0 Minority interest and other (33.1) (0.5) (33.6) -- -- -- Total production cost for per ounce calculations $126.4 $22.6 $149.0 $33.1 $55.7 $100.7 Equity ounces sold (000) 678.8 100.7 779.5 167.8 193.2 281.2 Equity cash cost per ounce sold $121 $180 $129 $124 $261 $290 Equity total production cost per ounce sold $186 $224 $191 $197 $288 $358 Six Months Ended June 30, 2003 Total Batu Tanami Australia Hijau(1) Zarafshan Minahasa Martha Costs applicable to sales under GAAP $77.4 $235.4 n/a $18.0 $17.1 $13.9 Minority interest (4.3) (4.3) n/a -- -- (0.4) Accretion expense (0.5) (2.5) n/a (0.2) (0.3) (0.2) Write-down of inventories (2.0) (5.4) n/a -- (1.3) (2.6) Purchased ore and other -- -- n/a -- (1.0) -- Total cash cost for per ounce calculations 70.6 223.2 n/a 17.8 14.5 10.7 Accretion expense and other 0.1 1.9 n/a 0.2 0.3 0.1 Depreciation, depletion and amortization 18.7 53.8 n/a 5.5 3.4 4.9 Minority interest and other (1.0) (1.0) n/a -- (0.2) (0.1) Total production cost for per ounce calculations $88.4 $277.9 n/a $23.5 $18.0 $15.6 Equity ounces sold (000) 296.2 938.4 n/a 121.7 58.1 47.3 Equity cash cost per ounce sold $238 $238 n/a $146 $250 $229 Equity total production cost per ounce sold $298 $296 n/a $193 $310 $332 Six Months Ended June 30, 2003 Total Other Total Ovacik International Gold Costs applicable to sales under GAAP $10.9 $59.9 $821.3 Minority interest -- (0.4) (92.7) Accretion expense (0.1) (0.8) (10.5) Write-down of inventories -- (3.9) (10.3) Purchased ore and other -- (1.0) (4.2) Total cash cost for per ounce calculations 10.8 53.8 703.6 Accretion expense and other -- 0.6 9.6 Depreciation, depletion and amortization 7.2 21.0 239.1 Minority interest and other -- (0.3) (34.9) Total production cost for per ounce calculations $18.0 $75.1 $917.4 Equity ounces sold (000) 86.2 313.3 3,415.7 Equity cash cost per ounce sold $125 $172 $207 Equity total production cost per ounce sold $208 $240 $269 6. Reconciliation of Batu Hijau Costs Applicable to Sales to Total Production Cost Per Equity Copper Pound (in millions, except per pound) Three Months Ended Six Months Ended June 30, June 30, 2004 (1) 2003 (1) 2004 (1) 2003 (1) Costs applicable to sales per financial statements $70.8 $31.8 $134.6 $61.1 Minority interest (31.8) (5.0) (61.0) (12.5) Accretion expense (0.4) (0.8) (0.9) (1.7) Smelting and refining 10.7 9.1 25.0 17.5 Total cash cost for per pound calculation 49.3 35.1 97.7 64.4 Accretion expense 0.4 0.7 0.9 1.8 Depreciation, depletion and amortization 21.5 19.9 42.6 38.6 Minority interest (9.5) (8.7) (18.7) (16.9) Total production cost for per pound calculation $61.7 $47.0 $122.5 $87.9 Equity copper sold (000 lbs) 106,848 91,195 180,667 161,044 Total cash cost per equity pound $0.46 $0.38 $0.54 $0.40 Total production cost per equity pound $0.58 $0.52 $0.68 $0.55 (1) 2004 and 2003 cash and total production cost per pound presented on a co-product basis. 7. Reconciliation of Golden Grove Costs Applicable to Sales to Copper and Zinc Cash Costs Per Pound (in millions, except per pound) Three Months Ended June 30, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements $22.3 $16.6 $5.7 $9.7 $8.8 $0.9 Accretion expense (0.2) (0.1) (0.1) (0.1) (0.1) -- Write-down inventories (3.5) (0.9) (2.6) (3.6) (1.5) (2.1) Smelting and refining 6.2 2.1 4.1 9.1 2.6 6.5 Total cash cost for per pound calculation $24.8 $17.7 $7.1 $15.1 $9.8 $5.3 Total sold (000 lbs) n/a 19,923 19,670 n/a 16,167 28,715 Total cash cost per pound sold n/a $0.89 $0.37 n/a $0.60 $0.19 Six Months Ended June 30, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements $31.4 $17.1 $14.3 $24.9 $17.8 $7.1 Accretion expense (0.3) (0.1) (0.2) (0.2) (0.1) (0.1) Write-down inventories (3.5) (0.9) (2.6) (6.8) (2.9) (3.9) Smelting and refining 15.3 2.6 12.7 16.3 6.2 10.1 Total cash cost for per pound calculation $42.9 $18.7 $24.2 $34.2 $21.0 $13.2 Total sold (000 lbs) n/a 22,188 65,118 n/a 37,456 53,628 Total cash cost per pound sold n/a $0.84 $0.37 n/a $0.56 $0.25 8. Gold Hedge Position - Current Maturity Summary (1) (000 ounces) Gold Put Price Option Capped Contracts Contracts Years Ozs Price (2) Ozs Price (2) 2004 98 $293 -- -- 2005 205 $292 500 $350 2006 100 $338 -- -- 2007 20 $397 -- -- 2008 -- -- 1,000 $384 2009 -- -- 600 $381 2010 -- -- -- -- 2011 -- -- 250 $392 Total/Average 423 $308 2,350 $377 The mark-to-market value of the gold put option contracts was negative $9 million at June 30, 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 second quarter earnings conference call and web cast presentation will be held on Wednesday, July 28, 2004 beginning at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time). To participate: Dial-In Number: (312) 470-7109 Leader: Russell Ball Password: Newmont The conference call will also be simultaneously carried on our web site at www.newmont.com under Investor Information/Presentations and will be archived there for a limited time. Cautionary Statement This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) 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- 07/28/2004 AA LAW040 /PRNewswire -- July 28/ /FIRST AND FINAL ADD/ /Web site: http://www.newmont.com/ (NEM) CO: Newmont Mining Corporation ST: Colorado IN: MNG SU: ERN ERP CCA