EX-99.1 2 e19463ex99_1.txt PRESS RELEASE Exhibit 99.1 Newmont Announces Third Quarter Net Income of $128.7 million ($0.29 per share); Nine Month Net Income of $252.9 million ($0.57 per share) DENVER, Oct. 27 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM) today announced third quarter net income applicable to common shares of $128.7 million ($0.29 per share) compared with net income of $114.4 million ($0.28 per share) for the third quarter of 2003. Net cash provided by operating activities for the quarter increased 32% to $339.3 million from $256.7 million for the third quarter of 2003. Newmont sold 1.73 million equity ounces of gold at total cash costs of $233 per ounce during the quarter. Wayne W. Murdy, Chairman and Chief Executive Officer, said, "Our higher third quarter cash flow and earnings reflected the strength and flexibility of our asset portfolio. We continue to expect equity gold sales of approximately seven million ounces for 2004. We also remain optimistic for reserve growth in 2004 through our ongoing exploration success in Ghana and elsewhere." Third Quarter Nine Months 2004 2003 2004 2003 Financial (in millions, except per share) Revenues $1,162.7 $881.2 $3,294.1 $2,351.9 Net cash provided by operating activities $339.3 $256.7 $972.3 $480.5 Net income applicable to common shares $128.7 $114.4 $252.9 $322.5 Net income per common share, basic $0.29 $0.28 $0.57 $0.80 Operating Equity gold sales (000 ounces)(1) 1,734.7 2,064.1 5,190.4 5,668.5 Average realized price ($/equity ounce) $404 $366 $404 $357 Total cash costs ( $/equity ounce)(2) $233 $201 $235 $205 Total production costs ($/equity ounce)(2) $296 $265 $301 $268 1. Equity gold sales 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 Third quarter net income applicable to common shares was $128.7 million ($0.29 per share), compared with $114.4 million ($0.28 per share) for the third quarter of 2003. For the first nine months, net income applicable to common shares was $252.9 million ($0.57 per share), compared with net income of $322.5 million ($0.80 per share) for the first nine months of 2003. Net income for the third quarter of 2004 was impacted by the following items: - an $8.2 million ($0.02 per share) non-cash write-down of assets in Australia and at Yanacocha; - a $6.0 million ($0.01 per share) charge for increased Australian legacy site reclamation accruals; - a $7.3 million ($0.02 per share) gain on the sale of the Bronzewing mine in Australia; and - other miscellaneous charges of $3.9 million ($0.01 per share). These transactions had the effect of reducing net income for the third quarter of 2004 by $10.8 million ($0.02 per share). Net income for the third quarter of 2003 was impacted by the following items: - a net $13.6 million ($0.03 per share) loss on investments, primarily related to the sale of 28 million shares of Kinross Gold; - a $32.8 million ($0.08 per share) loss for the change in fair value of gold derivative instruments that did not qualify as "effective hedges" and were thus recognized in income; - a $14.5 million ($0.04 per share) gain on the extinguishment of Yandal bonds; - a $20.9 million ($0.05 per share) gain on the extinguishment of Yandal derivative liabilities; and - other miscellaneous charges totaling $3.0 million ($0.01 per share). These transactions had the effect of reducing net income for the third quarter of 2003 by $14.0 million ($0.03 per share). For the third quarter of 2004, the Company sold 1,734,700 equity ounces of gold, 16% lower than the third quarter of 2003. During the first nine months of 2004, the Company sold 5,190,400 equity ounces of gold, compared with 5,668,500 equity ounces sold in the first nine months of 2003. The decreases in both periods primarily represented lower sales in Nevada due to increased stripping and lower grades as well as operations that have been sold. The average realized gold price in the quarter was $404 per equity ounce, a 10% increase over the prior year quarter. For the first nine months, the average realized gold price was $404 per equity ounce, a 13% increase over the prior year period. The Company generated net cash from operating activities of $339.3 million in the third quarter and $972.3 million for the first nine months of 2004. In the third quarter of 2004, Newmont reclassified dividends paid to minority interests from the operating activities section to the financing activities section of the cash flow statement for 2003 and 2004. Previously, dividends paid to minority interests were netted against "minority interest" in the operating activities section of the cash flow statement. Net cash provided by operating activities for 2003 was negatively impacted by the early settlement of derivative instruments classified as cash flow hedges. Operating Highlights - Third Quarter North America Q3 Q3 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 625.8 786.2 1,966.0 2,170.7 Total cash costs ($/ounce)(1) $292 $239 $283 $238 * Nevada operations sold 570,400 equity ounces in the third quarter (-18%) with 10% lower mill ore grade and 16% lower leach production. Higher total cash costs of $287 per ounce (+20%) were primarily attributable to lower grade ore resulting from continued stripping at Gold Quarry and Twin Creeks as well as higher diesel, electricity and equipment maintenance costs. Major stripping campaigns at Gold Quarry and Twin Creeks are expected to augment production and decrease total cash costs beginning in 2005. * Golden Giant in Canada sold 26,200 ounces in the third quarter (-39%) at total cash costs of $418 per ounce (+76%). Lower sales and higher costs were primarily due to a temporary production suspension caused by an ore hoisting system failure in late June 2004, from decreasing access, lower mill ore grades (-24%), and from appreciation of the Canadian dollar. * Holloway in Canada sold 13,300 equity ounces in the third quarter (-24%) at total cash costs of $376 per ounce (+27%). Lower sales resulted from a 7% decrease in mill throughput and a build in inventory that was partially offset by 5% higher mill ore grades. Higher unit costs were attributable to lower production and increased costs for manpower, steel and electricity and from appreciation of the Canadian dollar. * La Herradura in Mexico sold 15,900 equity ounces in the third quarter (-4%) at total cash costs of $179 per ounce (-1%). Lower leach tons placed (-5%) offset higher ore grades mined (+6%). South America Q3 Q3 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 401.0 495.0 1,141.8 1,274.5 Total cash costs ($/ounce)(1) $140 $121 $141 $125 * Yanacocha in Peru sold 397,000 equity ounces in the third quarter (-12%) at total cash costs of $139 per ounce (+23%). Lower gold sales resulted from a 9% decrease in leach tons placed and a slower recovery rate at La Quinua. Increased costs for diesel, reagent and waste stripping, as well as higher fuel consumption from longer haul distances impacted costs. The temporary scaling back of mining operations due to a blockade of the mine's access road during the quarter did not change the full year 2004 equity gold sales forecast of 1.54 million equity ounces at total cash costs of approximately $135 per ounce. * Kori Kollo in Bolivia sold 4,000 equity ounces (-91%) at total cash costs of $235 per ounce (+18%). Open-pit mining activities were completed in October 2003 with production continuing from residual leaching. Australia/New Zealand Q3 Q3 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 472.6 541.6 1,429.8 1,534.1 Total cash costs ($/ounce)(1) $269 $234 $269 $236 * The Australian and New Zealand operations sold 472,600 equity ounces (-13%) in the third quarter, with lower gold sales largely attributable to the sale of two Yandal mines. Total cash costs of $269 per equity ounce were up 15% from the year ago quarter, largely due to stronger Australian and New Zealand dollar exchange rates and higher fuel and consumable costs. Over the past 12 months, the Australian and New Zealand dollars have risen approximately 7% and 14% respectively against the US dollar. In the third quarter: * Kalgoorlie sold 124,800 equity ounces (+8%) at total cash costs of $278 per ounce (+5%). Increased gold sales were the result of 15% higher ore grades. * Pajingo sold 58,300 ounces (-36%) at total cash costs of $226 per ounce (+77%). Lower gold sales were primarily due to lower mill ore grade (-36%). Higher cash costs reflected lower production due to lower ore grades. * Tanami sold 163,800 ounces (+7%) at total cash costs of $273 per ounce (+13%). Higher sales resulted from higher ore grades (+18%) at Groundrush, partially offset by lower mill throughput (-5%). Higher cash costs were impacted by increased underground backfill costs. * Yandal sold 77,900 ounces (-49%) at total cash costs of $308 per ounce (+14%). Lower sales largely reflected the sale of the Wiluna and Bronzewing mines. At Jundee, higher cash costs reflected increased open-pit mining costs. * Martha in New Zealand sold 37,600 ounces (+44%) at total cash costs of $206 per ounce (-5%). Higher gold sales reflected increased ore grades (+54%), partially offset by a lower recovery rate (-5%). Lower cash costs resulted from higher production. * Golden Grove sold 7.4 million pounds of copper (-15%) and 27.3 million pounds of zinc (+188%). Total cash costs were $0.89 and $0.40 per pound, respectively, compared to the year ago quarter of $0.47 and $0.05 per pound, respectively. Higher cash costs reflected lower by-product credits and increased ground support costs. Indonesia Q3 Q3 YTD YTD 2004 2003 2004 2003 Equity copper sales (M lbs) 111.3 103.2 292.0 264.3 Total cash costs ($/lb Cu)(1),(2) $0.56 $0.34 $0.55 $0.38 Equity gold sales (000 ozs) 154.5 139.6 371.9 343.9 Total cash costs ($/oz Au) (1),(2) $163 $159 $188 $182 * 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 cash costs are impacted by relative movements in the copper and gold prices. * Batu Hijau sold 111.3 million equity pounds of copper in the third quarter (+8%) at total cash costs of $0.56 per pound. Higher copper sales reflected increased throughput (+7%) from crusher modifications completed in late 2003. Improved copper ore grades (+7%) were offset by an inventory increase due to shipment timing. Costs were impacted by higher treatment and refining charges and higher mining and processing costs associated with harder ores. The realized copper price for the third quarter was $1.42 per pound, a 69% increase from the 2003 third quarter. * Batu Hijau sold 134,100 equity ounces of gold (+15%) at total cash costs of $166 per ounce in the third quarter. Increased gold sales reflected increased throughput (+7%) and higher gold ore grades (+12%), offset by an increase in inventory. * Newmont's economic interest in Batu Hijau for the third quarter was 56.25%. Effective October 1, 2004, Newmont's economic interest decreased to 52.875%, reflecting cumulative positive retained earnings at the end of the third quarter resulting in the initiation of dividend payments to the minority partner. * Minahasa in Indonesia sold 20,400 equity ounces (-12%) at total cash costs of $146 per ounce (-20%) in the third quarter. Although mining ceased at Minahasa in October 2001, stockpiled ore was processed until the mine closed in August 2004. * Following recent accusations related to alleged pollution in Buyat Bay near the Minahasa mine, five Minahasa employees were detained for questioning by Indonesian police during the quarter. Independent tests conducted by the World Health Organization, the Indonesian Government and the Australian Commonwealth Scientific and Industrial Research Organization have all demonstrated that Minahasa has not caused environmental pollution. The five Minahasa employees were recently released from the police detention facility in Jakarta. Newmont remains steadfast that Minahasa did not cause environmental pollution and will continue to defend Minahasa, its employees and the Company's reputation against all accusations. Central Asia/Europe Q3 Q3 YTD YTD 2004 2003 2004 2003 Equity gold sales (000 ozs) 80.8 101.7 280.9 309.6 Total cash costs ($/ounce)(1) $169 $141 $168 $138 * Zarafshan in Uzbekistan sold 46,100 equity ounces (-8%) at total cash costs of $165 per ounce (+8%) in the third quarter. Lower gold sales were primarily attributable to lower leach grade (-9%) due to the transition to a lower grade ore zone and decreased crusher throughput (-5%) from a conveyor change over. * Ovacik in Turkey sold 34,700 ounces (-33%) at total cash costs of $174 per ounce (+36%) in the third quarter. In July 2004, a Turkish court ordered the suspension of operating permits pending the completion of certain additional permitting requirements, including the submission of an updated environmental impact assessment. The operation is complying with the court's order and is working with the Turkish authorities to obtain permission to reopen the mine. Lower sales reflected the suspension, partially offset by a reduction in inventories. Increased cash costs were the result of lower production. 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. 2003 total cash costs for Indonesia included pro forma results for Batu Hijau to reflect the change to co-product accounting effective January 1, 2004. Other Highlights Cash, Marketable Securities and Debt At the end of the third quarter, cash and cash equivalents totaled $1.4 billion and outstanding debt totaled $1.7 billion. Of the outstanding debt, $784.1 million was Batu Hijau debt that is non-recourse to Newmont. During the third quarter, outstanding debt decreased by $66 million. At the close of markets on September 30, the value of the Company's marketable securities and other short-term investments portfolio was $413.4 million. Newmont Capital Newmont Capital manages the Company's royalty and marketable securities portfolios as well as asset transactions. For the third quarter, royalty and dividend income was $19.1 million compared to $15.8 million for the year ago quarter. For the nine months, royalty and dividend income was $47.6 million compared with $40.8 million for the same period in 2003. The increases primarily reflected higher oil and gas prices and distributions from the Canadian Oil Sands Trust investment made in 2004. During the third quarter, Newmont Capital entered into or closed the following transactions and agreements, reflecting new strategic investments and ongoing portfolio optimization efforts: - the purchase of additional units of the Canadian Oil Sands Trust, increasing Newmont's position to 6 million units (or approximately 6.8% of units outstanding) and raising the total cost basis of the investment to approximately $200 million; - the acquisition of a 10.2% equity interest in Gabriel Resources Ltd, which is advancing the Rosia Montana gold project in Romania; - the sale of the Bronzewing mine in Western Australia; - an agreement to facilitate the restructuring of Australian Magnesium Corporation (AMC) and eliminate all remaining associated Newmont guarantees and obligations in exchange for an injection of subordinated debt, pending approval by AMC shareholders in the fourth quarter in 2004; and - an agreement to sell Newmont's joint venture minority interest in the Midwest uranium deposit in Saskatchewan to Denison Mines Ltd. Project Development & Exploration The Leeville project in Nevada remains on schedule for initial gold production in late 2005. The production and ventilation shafts were 1,441 feet (79% complete) and 1,380 feet (94% complete), respectively, from the surface at the end of the third quarter. The drift from the Carlin East underground mine to the Leeville ventilation shaft was completed during the quarter. At Phoenix in Nevada, engineering is approximately 51% complete with construction scheduled to commence in the fourth quarter. This project remains on schedule for initial gold production in mid-2006. At Gold Quarry/Dos Equis, ongoing stripping has started to uncover higher grade refractory ores. Year-end 2003 reserves were 6 million ounces after 2003 additions extended the mine life from 6 to 11 years. Exploration results this year have identified mineralization extensions containing additional refractory and oxide ores. At the Ahafo project in Ghana, engineering work is progressing with long-lead-time equipment ordered. Camp and infrastructure construction have commenced, along with earth work preparation for the mill and the water storage dam. The Afaho project remains on schedule for initial gold production in the second half of 2006. At Akyem in Ghana, the feasibility study update is progressing on schedule. A development decision is expected in the first quarter of 2005. At Boddington in Australia, completion of the feasibility study update is expected by mid-2005. The community engagement planning process and a detailed social impact assessment commenced in October with metallurgical test work and geological modeling continuing. Kori Chaca, a new oxide satellite deposit at the Kori Kollo mine in Bolivia, is scheduled for development in 2005 with leaching expected to begin in the second half of 2005. Pre-production capital expenditures are estimated to be approximately $20 million. Kori Kollo is expected to produce approximately 250,000 to 300,000 equity ounces in total from 2005 to 2008. Exploration activities during the third quarter continued, with ongoing success in Ghana and a focus on replacing and growing reserves net of depletion for 2004. Third quarter exploration, research and development expenditures were $54.1 million, compared with $30.6 million in the year ago quarter. Guidance for exploration, research and development expenditures for 2004 remains between $180 million and $200 million on a consolidated basis, reflecting expanded feasibility study work at Minas Conga in Peru, Akyem in Ghana and Martabe in Indonesia. Reserve additions at Phoenix in Nevada are expected for 2004 from the ongoing 150-hole infill and extension drilling program. 2004 Guidance For 2004, the Company expects gold sales of approximately 7 million equity ounces at total cash costs of approximately $230 to $235 per ounce. Statement of Consolidated Income Three Months Ended September 30, 2004 2003 (unaudited, in thousands, except per share) Revenues Sales-gold, net $889,553 $870,949 Sales-base metals, net 273,142 10,211 1,162,695 881,160 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 481,223 456,467 Base metals 101,426 4,881 Depreciation, depletion and amortization 167,964 151,443 Exploration, research and development 54,093 30,646 General and administrative 22,298 28,954 Write-down of long-lived assets 9,565 3,582 Other 34,343 7,014 870,912 682,987 Other income (expense) Gain (loss) on investments, net 299 (3,322) Loss on derivative instruments, net (600) (46,927) Gain on extinguishment of NYOL bonds, net -- 19,617 Gain on extinguishment of NYOL derivative liability, net -- 29,928 Royalty and dividend income 19,088 15,841 Interest income, foreign currency exchange and other income 27,170 22,367 Interest expense, net of capitalized interest of $3,702 and $2,617, respectively (26,976) (18,756) 18,981 18,748 Pre-tax income before minority interest and equity income (loss) and impairment of affiliates 310,764 216,921 Income tax expense (92,096) (80,977) Minority interest in income of subsidiaries (90,439) (57,125) Equity income of affiliates 498 35,615 Net income applicable to common shares $128,727 $114,434 Net income per common share, basic and diluted $0.29 $0.28 Basic weighted average common shares outstanding 443,457 408,379 Diluted weighted average common shares outstanding 447,060 412,922 Cash dividends declared per common share $0.075 $0.04 Statement of Consolidated Income Nine Months Ended September 30, 2004 2003 (unaudited, in thousands, except per share) Revenues Sales-gold, net $2,624,794 $2,309,531 Sales-base metals, net 669,349 42,379 3,294,143 2,351,910 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 1,446,916 1,277,721 Base metals 267,889 30,216 Depreciation, depletion and amortization 523,144 421,373 Exploration, research and development 138,993 82,739 General and administrative 79,949 86,656 Write-down of long-lived assets 25,865 5,376 Other 48,705 32,433 2,531,461 1,936,514 Other income (expense) (Loss) gain on investments, net (39,195) 81,393 Gain on derivative instruments, net 907 24,742 Gain on extinguishment of NYOL bonds, net -- 114,031 Gain on extinguishment of NYOL derivative liability, net -- 106,506 Loss on extinguishment of debt (222) (19,530) Royalty and dividend income 47,606 40,789 Interest income, foreign currency exchange and other income 43,958 86,004 Interest expense, net of capitalized interest of $8,600 and $5,665, respectively (77,409) (71,371) (24,355) 362,564 Pre-tax income before minority interest and equity income (loss) of affiliates and cumulative effect of a change in accounting principle 738,327 777,960 Income tax expense (210,038) (232,578) Minority interest in income of subsidiaries (230,354) (130,721) Equity loss and impairment of Australian Magnesium Corporation -- (120,059) Equity income of affiliates 2,107 62,467 Income before cumulative effect of a change in accounting principle 300,042 357,069 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 $252,904 $322,536 Income per common share before cumulative effect of a change in accounting principle, basic $0.68 $0.88 Cumulative effect of a change in accounting principle per common share, basic (0.11) (0.08) Net income per common share, basic $0.57 $0.80 Income per common share before cumulative effect of a change in accounting principle, diluted $0.67 $0.88 Cumulative effect of a change in accounting principle per common share, diluted (0.10) (0.09) Net income per common share, diluted $0.57 $0.79 Basic weighted average common shares outstanding 443,017 405,243 Diluted weighted average common shares outstanding 446,607 407,941 Cash dividends declared per common share $0.20 $0.12 Consolidated Balance Sheets September 30, December 31, 2004 2003 (unaudited, in thousands) ASSETS Cash and cash equivalents $1,417,004 $1,314,022 Marketable securities and other short-term investments 413,444 274,593 Trade receivables 169,151 20,055 Accounts receivable 84,160 70,631 Inventories 239,677 225,719 Stockpiles and ore on leach pads 241,223 248,625 Deferred stripping costs 37,834 60,086 Deferred income tax assets 193,957 56,682 Other current assets 70,496 100,280 Current assets 2,866,946 2,370,693 Property, plant and mine development, net 5,263,960 3,715,457 Investments 24,749 733,977 Deferred stripping costs 92,252 30,293 Long-term stockpiles and ore on leach pads 535,892 305,810 Deferred income tax assets 361,268 369,764 Other long-term assets 183,923 106,995 Goodwill 3,088,592 3,042,557 Total assets $12,417,581 $10,675,546 LIABILITIES Current portion of long-term debt $329,004 $190,866 Accounts payable 207,926 163,164 Employee-related benefits 110,977 136,301 Other current liabilities 415,806 351,706 Current liabilities 1,063,713 842,037 Long-term debt 1,361,222 886,633 Reclamation and remediation liabilities 410,336 362,283 Deferred revenue from sale of future production 49,120 53,841 Deferred income tax liabilities 377,581 250,491 Employee-related benefits 224,386 253,726 Advanced stripping costs 103,227 -- Other long-term liabilities 341,842 295,082 Total liabilities 3,931,427 2,944,093 Minority interest in subsidiaries 823,751 346,518 STOCKHOLDERS' EQUITY Total stockholders' equity 7,662,403 7,384,935 Total liabilities and stockholders' equity $12,417,581 $10,675,546 Statement of Consolidated Cash Flows Three Months Ended September 30, 2004 2003 (unaudited, in thousands) Operating activities: Net income $128,727 $114,434 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 167,964 151,443 Accretion of accumulated reclamation obligations 6,532 5,799 Amortization of deferred stripping costs, net 24,897 (15,599) Deferred income taxes 39,360 6,346 Foreign currency exchange gain (3,442) (18,937) Minority interest expense 90,439 57,125 Equity income and impairment of affiliates, net of dividends (498) (35,615) Write-downs of inventories, stockpiles and ore on leach pads 7,596 2,492 Write-down of long-lived assets 9,565 3,582 (Gain) loss on investments, net (299) 3,322 Loss on derivative instruments, net 600 46,927 Gain on extinguishment of NYOL bonds, net -- (19,617) Gain on extinguishment of NYOL derivatives liability, net -- (29,928) Gain on sale of assets and other (28,626) (1,029) (Increase) decrease in operating assets: Accounts receivable (24,239) (3,220) Inventories, stockpiles and ore on leach pads (9,101) 6,450 Other assets (8,216) (4,429) Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (46,037) (4,640) Early settlement of derivative instruments classified as cash flow hedges -- 1,397 Reclamation liabilities (15,897) (9,595) Net cash provided by operating activities 339,325 256,708 Investing activities: Additions to property, plant and mine development (166,504) (147,084) Investment in marketable equity securities (125,484) -- Advances to joint ventures and affiliates, net -- 6,190 Proceeds from sale of investments 2,852 232,190 Early settlement of ineffective derivative instruments 5,495 (27,588) Proceeds from asset sales and other 6,153 (1,028) Net cash (used in) provided by investing activities (277,488) 62,680 Financing activities: Proceeds from long-term debt -- 377,478 Repayment of long-term debt (64,188) (516,223) Dividends paid on common stock (33,353) (16,387) Dividends paid to minority interests (28,667) (51,083) Proceeds from stock issuance 7,299 29,997 Change in restricted cash and other (2,676) -- Net cash used in financing activities (121,585) (176,218) Effect of exchange rate changes on cash gain (loss) 1,927 1,500 Net change in cash and cash equivalents (57,821) 144,670 Cash and cash equivalents at beginning of period 1,474,825 274,741 Cash and cash equivalents at end of period $1,417,004 $419,411 Supplemental information: Interest paid, net of amounts capitalized $12,147 $30,116 Income taxes paid $52,482 $34,690 Statement of Consolidated Cash Flows Nine Months Ended September 30, 2004 2003 (unaudited, in thousands) Operating activities: Net income $252,904 $322,536 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 523,144 421,373 Accretion of accumulated reclamation obligations 19,386 17,119 Amortization of deferred stripping costs, net 8,421 (29,713) Deferred income taxes 53,828 15,091 Foreign currency exchange loss (gain) 5,015 (70,821) Minority interest expense 230,354 130,721 Equity (income) loss and impairment of affiliates, net of dividends (617) 63,694 Write-downs of inventories, stockpiles and ore on leach pads 19,145 20,433 Write-downs of long-lived assets 25,865 5,376 Cumulative effect of a change in accounting principle, net of tax 47,138 34,533 Loss (gain) on investments, net 39,195 (81,393) Gain on derivative instruments, net (907) (24,742) Gain on extinguishment of NYOL bonds, net -- (114,031) Gain on extinguishment of NYOL derivatives liability, net -- (106,506) Loss on extinguishment of debt 222 19,530 Gain on sale of assets and other (52,563) (13,472) (Increase) decrease in operating assets: Accounts receivable (21,333) 4,780 Inventories, stockpiles and ore on leach pads 4,618 (19,124) Other assets (13,151) 2,903 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities (135,379) 13,878 Early settlement of derivative instruments classified as cash flow hedges -- (118,591) Reclamation liabilities (32,991) (13,090) Net cash provided by operating activities 972,295 480,484 Investing activities: Additions to property, plant and mine development (519,910) (366,185) Investment in marketable equity securities (219,204) -- Advances to joint ventures and affiliates, net -- (40,013) Cash recorded upon consolidation of Batu Hijau 82,203 -- Proceeds from the sale of investments 2,852 232,190 Proceeds from the sale of TVX Newmont Americas -- 180,000 Early settlement of ineffective derivative instruments 5,205 (57,741) Cash consideration for acquisition of minority interests -- (11,195) Proceeds from asset sales and other 19,021 1,613 Net cash used in investing activities (629,833) (61,331) Financing activities: Proceeds from long-term debt 37,715 492,478 Repayment of long-term debt (141,088) (838,583) Dividends paid on common stock (88,726) (48,695) Dividends paid to minority interests (94,487) (80,273) Proceeds from stock issuance 33,378 54,848 Change in restricted cash and other 16,568 -- Net cash used in financing activities (236,640) (420,225) Effect of exchange rate changes on cash (loss) gain (2,840) 18,800 Net change in cash and cash equivalents 102,982 17,728 Cash and cash equivalents at beginning of period 1,314,022 401,683 Cash and cash equivalents at end of period $1,417,004 $419,411 Supplemental information: Interest paid, net of amounts capitalized $63,236 $97,413 Income taxes paid $214,693 $145,157 Operating Statistics Summary Australia/ New Zealand North America South America (1) Three Months Ended September 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $307 $254 $140 $120 $234 $237 Capitalized mining and other (17) (20) (6) (4) 20 (15) Cash operating costs 290 234 134 116 254 222 Royalties and production taxes 2 5 6 5 15 12 Total cash costs (5) 292 239 140 121 269 234 Reclamation and mine closure costs 2 4 2 3 3 2 Total costs applicable to sales 294 243 142 124 272 236 Depreciation and amortization 55 57 69 58 62 65 Total production costs (5) $349 $300 $211 $182 $334 $301 Consolidated gold sales (000 ounces) 652.8 786.2 777.6 928.5 472.6 541.6 Equity gold sales (000 ounces) 625.8 786.2 401.0 495.0 472.6 541.6 Average realized price per equity ounce Copper Summary (6) Equity copper production (000 pounds) Equity copper sales (000 pounds) Total cash cost per equity pound Average realized price per equity pound (1) Includes 10,200 and 3,600 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. Golden Grove is excluded from the cost per ounce calculations. (2) Indonesia includes Batu Hijau and Minahasa (3) Central Asia/Europe includes Zarafshan (Uzbekistan) and Ovacik (Turkey) (4) 2003 includes equity investments comprise Batu Hijau, TVX Newmont Americas and Echo Bay Mining Limited. (5) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (6) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. Equity Central Invest- Asia/Europe ments Indonesia (2) (3) (4) Total Three Months Ended September 30, 2004 2003 2004 2003 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $128 $173 $173 $143 -- $226 $208 Capitalized mining and other 24 3 (10) (9) -- -- (14) Cash operating costs 152 176 163 134 -- 226 194 Royalties and production taxes 11 6 6 7 -- 7 7 Total cash costs (5) 163 182 169 141 -- 233 201 Reclamation and mine closure costs 3 6 2 1 -- 3 3 Total costs applicable to sales 166 188 171 142 -- 236 204 Depreciation and amortization 26 97 102 66 -- 60 61 Total production costs (5) $192 $285 $273 $208 -- $296 $265 Consolidated gold sales (000 ounces) 260.2 24.6 80.8 101.7 -- 2,244.0 2,382.6 Equity gold sales (000 ounces) 154.5 23.1 80.8 101.7 116.5 1,734.7 2,064.1 Average realized price per equity ounce $404 $366 Copper Summary (6) Equity copper production (000 pounds) 121,934 125,478 Equity copper sales (000 pounds) 118,702 111,957 Total cash cost per equity pound $0.58 $0.47 Average realized price per equity pound $1.44 $0.77 (1) Includes 10,200 and 3,600 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. Golden Grove is excluded from the cost per ounce calculations. (2) Indonesia includes Batu Hijau and Minahasa (3) Central Asia/Europe includes Zarafshan (Uzbekistan) and Ovacik (Turkey) (4) 2003 includes equity investments comprise Batu Hijau, TVX Newmont Americas and Echo Bay Mining Limited. (5) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (6) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. Australia/ North America South America New Zealand (1) Nine Months Ended September 30, 2004 2003 2004 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $307 $249 $141 $125 $253 $231 Capitalized mining and other (29) (18) (6) (4) 2 (7) Cash operating costs 278 231 135 121 255 224 Royalties and production taxes 5 7 6 4 14 12 Total cash costs (5) 283 238 141 125 269 236 Reclamation and mine closure costs 2 3 3 4 3 2 Total costs applicable to sales 285 241 144 129 272 238 Depreciation and amortization 58 61 74 59 67 61 Total production costs (5) $343 $302 $218 $188 $339 $299 Consolidated gold sales (000 ounces) 2,053.5 2,170.7 2,209.9 2,364.8 1,429.8 1,552.8 Equity gold sales (000 ounces) 1,966.0 2,170.7 1,141.8 1,274.5 1,429.8 1,534.1 Average realized price per equity ounce Copper Summary (6) Equity copper production (000 pounds) Equity copper sales (000 pounds) Total cash cost per equity pound Average realized price per equity pound (1) Includes 15,500 and 10,400 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. Golden Grove is excluded from the cost per ounce calculations. (2) Indonesia includes Batu Hijau and Minahasa (3) Central Asia/Europe includes Zarafshan (Uzbekistan) and Ovacik (Turkey) (4) 2003 includes equity investments comprise Batu Hijau, TVX Newmont Americas and Echo Bay Mining Limited. (5) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (6) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. Equity Central Invest- Asia/Europe ments Indonesia (2) (3) (4) Total Nine Months Ended September 30, 2004 2003 2004 2003 2003 2004 2003 Production Costs Per Ounce: Direct mining and production costs $157 $222 $170 $135 -- $238 $207 Capitalized mining and other 22 3 (8) (2) -- (11) (10) Cash operating costs 179 225 162 133 -- 227 197 Royalties and production taxes 9 6 6 5 -- 8 8 Total cash costs (5) 188 231 168 138 -- 235 205 Reclamation and mine closure costs 1 4 1 1 -- 2 2 Total costs applicable to sales 189 235 169 139 -- 237 207 Depreciation and amortization 37 68 85 63 -- 64 61 Total production costs (5) $226 $303 $254 $202 -- $301 $268 Consolidated gold sales (000 ounces) 611.0 86.4 280.9 309.6 -- 6,585.1 6,484.3 Equity gold sales (000 ounces) 371.9 81.2 280.9 309.6 298.4 5,190.4 5,668.5 Average realized price per equity ounce $404 $357 Copper Summary (6) Equity copper production (000 pounds) 333,936 321,586 Equity copper sales (000 pounds) 321,556 310,457 Total cash cost per equity pound $0.58 $0.54 Average realized price per equity pound $1.31 $0.79 (1) Includes 15,500 and 10,400 ounces from the wholly-owned Golden Grove zinc/copper mine in 2004 and 2003, respectively. Golden Grove is excluded from the cost per ounce calculations. (2) Indonesia includes Batu Hijau and Minahasa (3) Central Asia/Europe includes Zarafshan (Uzbekistan) and Ovacik (Turkey) (4) 2003 includes equity investments comprise Batu Hijau, TVX Newmont Americas and Echo Bay Mining Limited. (5) For a reconciliation of total cash costs and total production costs per ounce (non-GAAP measures of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. (6) Represents both Batu Hijau and Golden Grove except total cash cost and average realized price per equity pound for 2003 are only Golden Grove. 2004 Guidance Equity Gold Total Sales Cash Costs (000 oz) ($/oz) North America Nevada 2,425 $280 Golden Giant 150 $310 Holloway 70 $340 La Herradura 70 $165 Sub-total 2,715 $280 South America Yanacocha 1,540 $135 Kori Kollo 25 $260 Sub-total 1,565 $137 Australia(1)/New Zealand Kalgoorlie 450 $310 Pajingo 265 $220 Tanami 660 $280 Yandal 370 $285 Martha 125 $220 Sub-total 1,870 $276 Indonesia Batu Hijau 390 $170 Minahasa 70 $260 Sub-total 460 $184 Central Asia/Europe Zarafshan 215 $160 Ovacik (2) 125 $215 Sub-total 340 $180 TOTAL (3) ~7,000 $230-$235 Equity Copper Total & Zinc Sales Cash Costs (million lbs) ($/lb) Batu Hijau -- Copper 380 $0.53 Golden Grove -- Copper 35 $0.88 Golden Grove -- Zinc 135 $0.43 Consolidated Financial (in millions, except tax rate) Royalty and dividend income $55-$58 Depreciation, depletion & amortization $700-$715 Exploration, research and development $180-$200 -- Exploration $115-$125 -- Advanced projects $45-$50 -- Research, development and other $20-$25 General and administrative $110-$115 Interest expense, net $100-$105 Tax rate (assuming $400/oz gold) 23%-28% Capital expenditures $730-$760 Notes: 1. Total cash costs are based on an A$1 = $0.715 exchange rate assumption for the fourth quarter of 2004. 2. Based on 100% ownership for the full year. The proposed sale of Ovacik, which suspended operations in August 2004, has been deferred pending a resolution of its operating permits. 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, assuming all other factors remain constant. Supplemental Information 1. Gold Production Summary -- Americas Nevada Canada (1) Other (2) Three Months Ended September 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 44,076 43,475 n/a n/a 2,993 3,042 Underground 416 414 215 267 n/a n/a Tons Milled/Processed (000): Oxide 1,148 1,036 214 275 n/a n/a Refractory 2,187 2,355 n/a n/a n/a n/a Leach 5,135 5,016 n/a n/a 998 1,050 Average Ore Grade (oz/ ton): Oxide 0.116 0.116 0.205 0.259 n/a n/a Refractory 0.199 0.221 n/a n/a n/a n/a Leach 0.027 0.029 n/a n/a 0.028 0.026 Average Mill Recovery Rate: Oxide 79.5% 77.0% 93.8% 95.6% n/a n/a Refractory 90.4% 91.3% n/a n/a n/a n/a Ounces Produced (000): 597.7 696.0 39.5 60.5 15.9 29.1 Equity Ounces Produced (000): Oxide 103.8 87.1 39.5 60.5 n/a n/a Refractory 388.0 514.7 n/a n/a n/a n/a Leach 78.9 94.2 n/a n/a 15.9 29.1 Total 570.7 696.0 39.5 60.5 15.9 29.1 Equity Ounces Sold (000) 570.4 696.9 39.5 60.2 15.9 29.1 Production Costs Per Ounce: Direct mining and production costs $304 $258 $402 $244 $189 $183 Capitalized mining and other (19) (22) 2 5 (10) (3) Cash operating costs 285 236 404 249 179 180 Royalties and production taxes 2 4 -- 6 -- 7 Total cash costs 287 240 404 255 179 187 Reclamation and mine closure costs 3 3 2 9 2 4 Total costs applicable to sales 290 243 406 264 181 191 Depreciation and amortization 50 55 96 81 104 65 Total production costs $340 $298 $502 $345 $285 $256 (1) Includes Golden Giant and Holloway (2) Other includes La Herradura and for 2003, Mesquite Kori Kollo, Yanacocha, Peru Bolivia Three Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 50,258 53,268 n/a 1,425 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 n/a n/a 1,764 Leach 36,913 40,524 n/a 978 Average Ore Grade (oz/ ton): Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 0.035 Leach 0.028 0.027 n/a 0.018 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 60.9% Ounces Produced (000): 754.5 862.4 5.1 48.4 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 32.9 Leach 387.4 442.8 4.5 9.7 Total 387.4 442.8 4.5 42.6 Equity Ounces Sold (000) 397.0 451.2 4.0 43.8 Production Costs Per Ounce: Direct mining and production costs $139 $111 $231 $216 Capitalized mining and other (6) (3) (12) (17) Cash operating costs 133 108 219 199 Royalties and production taxes 6 5 16 -- Total cash costs 139 113 235 199 Reclamation and mine closure costs 2 2 58 17 Total costs applicable to sales 141 115 293 216 Depreciation and amortization 69 60 81 34 Total production costs $210 $175 $374 $250 (1) Includes Golden Giant and Holloway (2) Other includes La Herradura and for 2003, Mesquite Nevada Canada (1) Other (2) Nine Months Ended September 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 144,523 131,264 n/a n/a 8,509 8,918 Underground 1,123 1,256 740 926 n/a n/a Tons Milled/Processed (000): Oxide 3,190 1,795 740 943 n/a n/a Refractory 6,541 6,865 n/a n/a n/a n/a Leach 14,211 12,619 n/a n/a 3,112 3,067 Average Ore Grade (oz/ ton): Oxide 0.131 0.148 0.233 0.242 n/a n/a Refractory 0.193 0.216 n/a n/a n/a n/a Leach 0.024 0.029 n/a n/a 0.027 0.026 Average Mill Recovery Rate: Oxide 79.0% 82.7% 94.3% 95.3% n/a n/a Refractory 90.5% 90.7% n/a n/a n/a n/a Ounces Produced (000): 1,756.9 1,859.2 164.7 212.2 51.4 93.7 Equity Ounces Produced (000): Oxide 330.3 217.4 164.7 212.2 n/a n/a Refractory 1,091.1 1,360.9 n/a n/a n/a n/a Leach 247.9 280.9 n/a n/a 51.4 93.7 Total 1,669.3 1,859.2 164.7 212.2 51.4 93.7 Equity Ounces Sold (000) 1,747.8 1,865.1 166.8 211.9 51.4 93.7 Production Costs Per Ounce: Direct mining and production costs $311 $253 $312 $254 $158 $169 Capitalized mining and other (33) (22) 2 2 (2) (4) Cash operating costs 278 231 314 256 156 165 Royalties and production taxes 5 8 2 3 -- 6 Total cash costs 283 239 316 259 156 171 Reclamation and mine closure costs 3 3 1 7 1 3 Total costs applicable to sales 286 242 317 266 157 174 Depreciation and amortization 54 57 83 89 76 66 Total production costs $340 $299 $400 $355 $233 $240 (1) Includes Golden Giant and Holloway (2) Other includes La Herradura and for 2003, Mesquite Kori Kollo, Yanacocha, Peru Bolivia Nine Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 148,295 154,716 n/a 7,638 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 n/a n/a 5,400 Leach 102,079 113,317 n/a 3,696 Average Ore Grade (oz/ ton): Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 0.036 Leach 0.024 0.028 n/a 0.017 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 62.4% Ounces Produced (000): 2,170.0 2,183.9 19.6 161.4 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 108.1 Leach 1,114.3 1,121.4 17.2 34.0 Total 1,114.3 1,121.4 17.2 142.1 Equity Ounces Sold (000) 1,125.0 1,130.0 16.8 144.5 Production Costs Per Ounce: Direct mining and production costs $139 $116 $266 $199 Capitalized mining and other (6) (3) (10) (13) Cash operating costs 133 113 256 186 Royalties and production taxes 6 5 16 -- Total cash costs 139 118 272 186 Reclamation and mine closure costs 2 2 41 12 Total costs applicable to sales 141 120 313 198 Depreciation and amortization 74 62 103 34 Total production costs $215 $182 $416 $232 (1) Includes Golden Giant and Holloway (2) Other includes La Herradura and for 2003, Mesquite 2. Gold Production Summary -- Australia/New Zealand Pajingo Yandal (1) Tanami Three Months Ended September 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 161 204 1,738 1,002 2,732 4,948 Tons Milled/Processed (000) 209 204 637 1,394 1,157 1,214 Average Ore Grade (oz/ton) 0.296 0.466 0.134 0.120 0.152 0.129 Average Mill Recovery Rate 97.1% 96.8% 92.6% 90.1% 95.1% 95.7% Ounces Produced (000) 58.3 91.2 78.0 150.7 166.0 151.3 Equity Ounces Produced (000) 58.3 91.2 78.0 150.7 166.0 151.3 Equity Ounces Sold (000) 58.3 90.9 77.9 151.8 163.8 153.1 Production Costs Per Ounce: Direct mining and production costs $223 $131 $297 $258 $214 $215 Capitalized mining and other (8) (13) -- 3 33 3 Cash operating costs 215 118 297 261 247 218 Royalties and production taxes 11 10 11 8 26 23 Total cash costs 226 128 308 269 273 241 Reclamation and mine closure costs 2 -- 4 3 2 1 Total costs applicable to sales 228 128 312 272 275 242 Depreciation and amortization 116 90 63 80 56 58 Total production costs $344 $218 $375 $352 $331 $300 (1) 2004 includes Jundee. 2003 includes Jundee, Bronzewing and Wiluna. Kalgoorlie Martha Three Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 10,549 13,178 1,250 1,549 Tons Milled/Processed (000) 1,839 1,883 345 354 Average Ore Grade (oz/ton) 0.079 0.069 0.121 0.078 Average Mill Recovery Rate 88.2% 84.0% 89.6% 93.9% Ounces Produced (000) 124.2 115.6 37.9 26.4 Equity Ounces Produced (000) 124.2 115.6 37.9 26.3 Equity Ounces Sold (000) 124.8 116.0 37.6 26.2 Production Costs Per Ounce: Direct mining and production costs $225 $283 $232 $401 Capitalized mining and other 43 (25) (26) (184) Cash operating costs 268 258 206 217 Royalties and production taxes 10 8 -- -- Total cash costs 278 266 206 217 Reclamation and mine closure costs 4 4 2 2 Total costs applicable to sales 282 270 208 219 Depreciation and amortization 35 19 100 129 Total production costs $317 $289 $308 $348 (1) 2004 includes Jundee. 2003 includes Jundee, Bronzewing and Wiluna. Pajingo Yandal (1) Tanami Nine Months Ended September 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 471 576 6,321 2,731 11,162 15,929 Tons Milled/Processed (000) 601 598 2,197 4,010 3,368 3,446 Average Ore Grade (oz/ton) 0.286 0.442 0.127 0.117 0.151 0.141 Average Mill Recovery Rate 96.5% 96.8% 92.7% 90.4% 95.2% 96.1% Ounces Produced (000) 171.6 258.3 266.3 433.6 483.6 467.7 Equity Ounces Produced (000) 171.6 258.3 266.3 433.6 483.6 448.5 Equity Ounces Sold (000) 182.0 258.7 291.0 433.0 505.7 449.3 Production Costs Per Ounce: Direct mining and production costs $227 $122 $271 $268 $229 $225 Capitalized mining and other (8) (8) (1) 6 15 (7) Cash operating costs 219 114 270 274 244 218 Royalties and production taxes 11 11 9 9 24 21 Total cash costs 230 125 279 283 268 239 Reclamation and mine closure costs -- -- 5 3 2 1 Total costs applicable to sales 230 125 284 286 270 240 Depreciation and amortization 121 80 74 70 57 59 Total production costs $351 $205 $358 $356 $327 $299 (1) 2004 includes Jundee for six months and Bronzewing for the first quarter. 2003 includes Jundee, Bronzewing and Wiluna. Kalgoorlie Martha Nine Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 34,028 36,229 3,624 3,839 Tons Milled/Processed (000) 5,272 5,327 1,057 990 Average Ore Grade (oz/ton) 0.073 0.071 0.096 0.082 Average Mill Recovery Rate 87.0% 85.2% 90.2% 91.8% Ounces Produced (000) 329.0 309.2 90.5 74.5 Equity Ounces Produced (000) 329.0 309.2 90.5 72.8 Equity Ounces Sold (000) 345.3 309.2 90.3 73.5 Production Costs Per Ounce: Direct mining and production costs $274 $256 $302 $331 Capitalized mining and other 14 (2) (85) (106) Cash operating costs 288 254 217 225 Royalties and production taxes 9 9 -- -- Total cash costs 297 263 217 225 Reclamation and mine closure costs 4 3 3 2 Total costs applicable to sales 301 266 220 227 Depreciation and amortization 34 23 111 111 Total production costs $335 $289 $331 $338 (1) 2004 includes Jundee for six months and Bronzewing for the first quarter. 2003 includes Jundee, Bronzewing and Wiluna. 3. Gold Production Summary -- Indonesia and Central Asia/Europe Batu Hijau, Minahasa, Indonesia Indonesia Three Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 59,595 60,928 n/a n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 13,213 12,300 105 172 Average Ore Grade (oz/ton) 0.023 0.020 0.167 0.142 Average Mill Recovery Rate 83.3% 83.4% 91.6% 93.0% Ounces Produced (000) 246.2 208.4 16.9 22.2 Equity Ounces Produced (000) 138.5 117.2 15.9 20.9 Equity Ounces Sold (000) 134.1 116.5 20.4 23.1 Production Costs Per Ounce: Direct mining and production costs $129 n/a $116 $173 Capitalized mining and other 28 n/a 3 3 Cash operating costs 157 n/a 119 176 Royalties and production taxes 9 n/a 27 6 Total cash costs 166 n/a 146 182 Reclamation and mine closure costs 1 n/a 13 6 Total costs applicable to sales 167 n/a 159 188 Depreciation and amortization 33 n/a (19) 97 Total production costs $200 n/a $140 $285 Zarafshan, Ovacik, Uzbekistan Turkey Three Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) n/a n/a 1,086 2,152 Tons Milled/Processed (000): Leach 1,986 2,082 n/a n/a Mill n/a n/a 90 151 Average Ore Grade (oz/ton) 0.038 0.042 0.346 0.338 Average Mill Recovery Rate n/a n/a 96.2% 93.7% Ounces Produced (000) 44.3 51.6 33.8 48.0 Equity Ounces Produced (000) 44.3 51.6 33.8 48.0 Equity Ounces Sold (000) 46.1 50.2 34.7 51.5 Production Costs Per Ounce: Direct mining and production costs $162 $151 $187 $136 Capitalized mining and other 3 2 (27) (21) Cash operating costs 165 153 160 115 Royalties and production taxes -- -- 14 13 Total cash costs 165 153 174 128 Reclamation and mine closure costs 2 2 3 1 Total costs applicable to sales 167 155 177 129 Depreciation and amortization 51 49 169 82 Total production costs $218 $204 $346 $211 Batu Hijau, Minahasa, Indonesia Indonesia Nine Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) 171,907 174,275 n/a n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 39,819 36,951 441 544 Average Ore Grade (oz/ton) 0.017 0.016 0.158 0.158 Average Mill Recovery Rate 81.0% 80.7% 90.5% 91.1% Ounces Produced (000) 546.1 480.7 63.8 78.4 Equity Ounces Produced (000) 307.2 270.4 59.9 73.7 Equity Ounces Sold (000) 301.7 262.7 70.2 81.2 Production Costs Per Ounce: Direct mining and production costs $135 n/a $248 $222 Capitalized mining and other 28 n/a 2 3 Cash operating costs 163 n/a 250 225 Royalties and production taxes 8 n/a 8 6 Total cash costs 171 n/a 258 231 Reclamation and mine closure costs 2 n/a 4 4 Total costs applicable to sales 173 n/a 262 235 Depreciation and amortization 37 n/a 32 68 Total production costs $210 n/a $294 $303 Zarafshan, Ovacik, Uzbekistan Turkey Nine Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons) n/a n/a 4,659 4,061 Tons Milled/Processed (000): Leach 5,929 6,116 n/a n/a Mill n/a n/a 331 435 Average Ore Grade (oz/ton) 0.043 0.043 0.320 0.335 Average Mill Recovery Rate n/a n/a 95.4% 93.6% Ounces Produced (000) 166.1 170.1 104.8 136.1 Equity Ounces Produced (000) 166.1 170.1 104.8 136.1 Equity Ounces Sold (000) 170.9 171.9 110.0 137.7 Production Costs Per Ounce: Direct mining and production costs $149 $146 $202 $120 Capitalized mining and other 2 2 (23) (6) Cash operating costs 151 148 179 114 Royalties and production taxes -- -- 14 12 Total cash costs 151 148 193 126 Reclamation and mine closure costs 2 2 2 1 Total costs applicable to sales 153 150 195 127 Depreciation and amortization 47 46 143 82 Total production costs $200 $196 $338 $209 4. Base Metal Summary -- Batu Hijau and Golden Grove Three Months Ended Nine Months Ended September 30, September 30, Batu Hijau 2004 (1) 2003 (1) 2004 (1) 2003 (1) Total tons mined (000) 59,595 60,928 171,907 174,275 Dry tons processed (000) 13,213 12,300 39,819 36,951 Average copper grade 0.88% 0.82% 0.78% 0.74% Average recovery rate 89.7% 90.7% 88.8% 89.2% Copper produced (000 lbs) 204,217 184,154 546,021 488,168 Equity copper produced (000 lbs) 114,872 103,587 307,137 274,595 Equity copper sold (000 lbs) 111,285 103,246 291,951 264,290 Realized copper price per pound $1.42 $0.84 $1.31 $0.80 Total cash cost per equity pound $0.56 $0.34 $0.55 $0.38 Noncash cost per equity pound 0.11 0.11 0.13 0.13 Total production cost per equity pound $0.67 $0.45 $0.68 $0.51 (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 Nine Months Ended September 30, September 30, Golden Grove 2004 2003 2004 2003 Total tons mined (000) 359 370 1,049 1,064 Dry tons processed (000) 354 346 1,028 1,045 Average copper grade 2.33% 4.68% 3.15% 4.84% Average copper recovery rate 85.3% 92.9% 86.7% 92.0% Copper produced (000 lbs) 7,062 21,891 26,799 46,991 Copper sold (000 lbs) 7,417 8,711 29,605 46,167 Realized copper price per pound $1.78 $0.77 $1.37 $0.79 Copper cash cost per pound $0.89 $0.47 $0.85 $0.54 Average zinc grade 8.96% 13.42% 9.93% 12.37% Average zinc recovery rate 87.3% 90.0% 88.9% 90.5% Zinc produced (000 lbs) 29,622 12,518 88,699 87,394 Zinc sold (000 lbs) 27,325 9,504 92,443 63,132 Realized zinc price per pound $0.48 $0.39 $0.48 $0.36 Zinc cash cost per pound $0.40 $0.05 $0.38 $0.22 Gold sold (000 ounces) 10.2 3.6 15.5 10.4 Silver sold (000 ounces) 543.9 391.0 857.6 1,165.8 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 La Total Three Months Ended September 30, Golden Hollo- Herrad- North 2004 Nevada Giant way Canada ura America Costs applicable to sales under GAAP $170.8 $11.0 $4.9 $15.9 $2.9 $189.6 Minority interest -- -- -- -- -- -- Accretion expense (1.5) (0.1) -- (0.1) -- (1.6) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (5.6) -- -- -- -- (5.6) Total cash cost for per ounce calculations 163.7 10.9 4.9 15.8 2.9 182.4 Accretion expense and other 1.5 0.1 -- 0.1 -- 1.6 Depreciation, depletion and amortization 29.0 2.6 1.2 3.8 1.7 34.5 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $194.2 $13.6 $6.1 $19.7 $4.6 $218.5 Equity ounces sold (000) 570.4 26.2 13.3 39.5 15.9 625.8 Equity cash cost per ounce sold $287 $418 $376 $404 $179 $292 Equity total production cost per ounce sold $340 $520 $465 $502 $285 $349 Three Months Ended Kori South September 30, 2004 Yanacocha Kollo America Pajingo Yandal Tanami Costs applicable to sales under GAAP $112.8 $1.3 $114.1 $13.7 $24.3 $46.4 Minority interest (56.5) (0.2) (56.7) -- -- -- Accretion expense (0.8) (0.2) (1.0) (0.1) (0.3) (0.3) Write-down of inventories -- -- -- (0.5) -- (1.4) Purchased ore and other (0.4) -- (0.4) -- -- -- Total cash cost for per ounce calculations 55.1 0.9 56.0 13.1 24.0 44.7 Accretion expense and other 0.8 0.2 1.0 0.1 0.3 0.3 Depreciation, depletion and amortization 49.0 0.3 49.3 6.8 4.9 9.0 Minority interest and other (21.5) -- (21.5) -- -- -- Total production cost for per ounce calculations $83.4 $1.4 $84.8 $20.0 $29.2 $54.0 Equity ounces sold (000) 397.0 4.0 401.0 58.3 77.9 163.8 Equity cash cost per ounce sold $139 $235 $140 $226 $308 $273 Equity total production cost per ounce sold $210 $374 $211 $344 $375 $331 Three Months Ended Australia/ September 30, New Batu 2004 Kalgoorlie Martha Zealand Hijau Minahasa Indonesia Costs applicable to sales under GAAP $35.2 $7.8 $127.4 $31.4 $3.5 $34.9 Minority interest -- --- -- (14.2) -- (14.2) Accretion expense (0.4) (0.1) (1.2) (0.2) (0.3) (0.5) Write-down of inventories -- -- (1.9) -- -- -- Purchased ore and other -- -- -- 5.2 (0.2) 5.0 Total cash cost for per ounce calculations 34.8 7.7 124.3 22.2 3.0 25.2 Accretion expense and other 0.4 0.1 1.2 0.2 0.3 0.5 Depreciation, depletion and amortization 4.4 3.8 28.9 7.8 (0.5) 7.3 Minority interest and other -- -- -- (3.4) -- (3.4) Total production cost for per ounce calculations $39.6 $11.6 $154.4 $26.8 $2.8 $29.6 Equity ounces sold (000) 124.8 37.6 462.4 134.1 20.4 154.5 Equity cash cost per ounce sold $278 $206 $269 $166 $146 $163 Equity total production cost per ounce sold $317 $308 $334 $200 $140 $192 Three Months Ended Central Asia Total September 30, 2004 Zarafshan Ovacik /Europe Gold Costs applicable to sales under GAAP $7.7 $7.5 $15.2 $481.2 Minority interest -- -- -- (70.9) Accretion expense (0.1) (0.1) (0.2) (4.5) Write-down of inventories -- (1.3) (1.3) (3.2) Purchased ore and other -- -- -- (1.0) Total cash cost for per ounce calculations 7.6 6.1 13.7 401.6 Accretion expense and other 0.1 0.1 0.2 4.5 Depreciation, depletion and amortization 2.3 5.9 8.2 128.2 Minority interest and other -- -- -- (24.9) Total production cost for per ounce calculations $10.0 $12.1 $22.1 $509.4 Equity ounces sold (000) 46.1 34.7 80.8 1,724.5 Equity cash cost per ounce sold $165 $174 $169 $233 Equity total production cost per ounce sold $218 $346 $273 $296 Three Months Ended September 30, 2003 Golden La Nevada Giant Holloway Canada Mesquite Herradura Costs applicable to sales under GAAP $172.1 $10.6 $5.3 $15.9 $2.6 $3.1 Minority interest -- -- -- -- -- -- Accretion expense (1.7) (0.3) (0.2) (0.5) (0.1) (0.1) Write-down of inventories (1.9) -- -- -- -- -- Purchased ore and other (7.7) -- -- -- -- -- Total cash cost for per ounce calculations 160.8 10.3 5.1 15.4 2.5 3.0 Accretion expense and other 1.7 0.3 0.2 0.5 0.1 0.1 Depreciation, depletion and amortization 37.1 3.4 1.4 4.8 1.1 0.8 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $199.6 $14.0 $6.7 $20.7 $3.7 $3.9 Equity ounces sold (000) 696.9 42.8 17.4 60.2 12.6 16.5 Equity cash cost per ounce sold $240 $238 $297 $255 $196 $181 Equity total production cost per ounce sold $298 $328 $388 $345 $289 $231 Three Months Ended September 30, North Kori South 2003 America Yanacocha Kollo America Pajingo Yandal Costs applicable to sales under GAAP $193.7 $105.3 $10.8 $116.1 $11.7 $41.7 Minority interest -- (53.3) (1.3) (54.6) -- -- Accretion expense (2.4) (0.8) (0.7) (1.5) -- (0.5) Write-down of inventories (1.9) -- -- -- -- (0.3) Purchased ore and other (7.7) -- -- -- -- -- Total cash cost for per ounce calculations 181.7 51.2 8.8 60.0 11.7 40.9 Accretion expense and other 2.4 0.8 0.7 1.5 (0.1) 0.4 Depreciation, depletion and amortization 43.8 48.5 1.7 50.2 8.2 12.2 Minority interest and other -- (21.2) (0.2) (21.4) -- -- Total production cost for per ounce calculations $227.9 $79.3 $11.0 $90.3 $19.8 $53.5 Equity ounces sold (000) 786.2 451.2 43.8 495.0 90.9 151.8 Equity cash cost per ounce sold $239 $113 $199 $121 $128 $269 Equity total production cost per ounce sold $300 $175 $250 $182 $218 $352 Three Months Ended Australia/ September 30, New 2003 Tanami Kalgoorlie Martha Zealand Minahasa Zarafshan Costs applicable to sales under GAAP $37.2 $31.3 $5.8 $127.7 $4.6 $7.7 Minority interest 0.1 -- 0.1 0.2 -- -- Accretion expense (0.3) (0.3) (0.1) (1.2) (0.1) -- Write-down of inventories -- -- -- (0.3) -- -- Purchased ore and other -- -- -- -- (0.3) -- Total cash cost for per ounce calculations 37.0 31.0 5.8 126.4 4.2 7.7 Accretion expense and other -- 0.3 -- 0.6 0.1 -- Depreciation, depletion and amortization 8.8 2.3 3.3 34.8 2.4 2.5 Minority interest and other -- -- -- -- (0.1) -- Total production cost for per ounce calculations $45.8 $33.6 $9.1 $161.8 $6.6 $10.2 Equity ounces sold (000) 153.1 116.0 26.2 538.0 23.1 50.2 Equity cash cost per ounce sold $241 $266 $217 $234 $182 $153 Equity total production cost per ounce sold $300 $289 $348 $301 $285 $204 Central Three Months Ended September 30, 2003 Ovacik Asia/Europe Total Gold Costs applicable to sales under GAAP $6.7 $14.4 $456.5 Minority interest -- -- (54.4) Accretion expense (0.1) (0.1) (5.3) Write-down of inventories -- -- (2.2) Purchased ore and other -- -- (8.0) Total cash cost for per ounce calculations 6.6 14.3 386.6 Accretion expense and other 0.1 0.1 4.7 Depreciation, depletion and amortization 4.2 6.7 137.9 Minority interest and other -- -- (21.5) Total production cost for per ounce calculations $10.9 $21.1 $507.7 Equity ounces sold (000) 51.5 101.7 1,944.0 Equity cash cost per ounce sold $128 $141 $201 Equity total production cost per ounce sold $211 $208 $265 La Nine Months Ended September Golden Herrad- North 30, 2004 Nevada Giant Holloway Canada ura America Costs applicable to sales under GAAP $525.6 $34.8 $17.9 $52.7 $8.1 $586.4 Minority interest -- -- -- -- -- -- Accretion expense (4.2) (0.2) -- (0.2) (0.1) (4.5) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (26.5) 0.1 0.1 0.2 -- (26.3) Total cash cost for per ounce calculations 494.9 34.7 18.0 52.7 8.0 555.6 Accretion expense and other 4.2 0.2 -- 0.2 0.1 4.5 Depreciation, depletion and amortization 95.7 9.2 4.5 13.7 3.9 113.3 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $594.8 $44.1 $22.5 $66.6 $12.0 $673.4 Equity ounces sold (000) 1,747.8 118.4 48.4 166.8 51.4 1,966.0 Equity cash cost per ounce sold $283 $294 $370 $316 $156 $283 Equity total production cost per ounce sold $340 $373 $465 $400 $233 $343 Nine Months Ended Kori South September 30, 2004 Yanacocha Kollo America Pajingo Yandal Tanami Costs applicable to sales under GAAP $320.7 $8.3 $329.0 $43.1 $82.8 $140.7 Minority interest (161.5) (1.0) (162.5) -- -- --- Accretion expense (2.3) (0.7) (3.0) (0.2) (1.4) (0.9) Write-down of inventories -- (2.1) (2.1) (1.0) (0.2) (4.1) Purchased ore and other (0.5) -- (0.5) -- -- -- Total cash cost for per ounce calculations 156.4 4.5 160.9 41.9 81.2 135.7 Accretion expense and other 2.3 0.7 3.0 0.1 1.4 0.7 Depreciation, depletion and amortization 151.2 2.0 153.2 22.0 21.6 29.1 Minority interest and other (68.2) (0.2) (68.4) -- -- -- Total production cost for per ounce calculations $241.7 $7.0 $248.7 $64.0 $104.2 $165.5 Equity ounces sold (000) 1,125.0 16.8 1,141.8 182.0 291.0 505.7 Equity cash cost per ounce sold $139 $272 $141 $230 $279 $268 Equity total production cost per ounce sold $215 $416 $218 $351 $358 $327 Australia Nine Months Ended /New Batu Mina- Indo- September 30, 2004 Kalgoorlie Martha Zealand Hijau hasa nesia Costs applicable to sales under GAAP $103.9 $19.9 $390.4 $72.3 $19.8 $92.1 Minority interest -- -- -- (32.7) -- (32.7) Accretion expense (1.3) (0.3) (4.1) (0.4) (0.3) (0.7) Write-down of inventories -- -- (5.3) -- (0.2) (0.2) Purchased ore and other -- -- -- 12.5 (1.2) 11.3 Total cash cost for per ounce calculations 102.6 19.6 381.0 51.7 18.1 69.8 Accretion expense and other 1.3 0.3 3.8 0.4 0.3 0.7 Depreciation, depletion and amortization 11.8 10.0 94.5 20.3 2.4 22.7 Minority interest and other -- -- -- (8.9) (0.1) (9.0) Total production cost for per ounce calculations $115.7 $29.9 $479.3 $63.5 $20.7 $84.2 Equity ounces sold (000) 345.3 90.3 1,414.3 301.7 70.2 371.9 Equity cash cost per ounce sold $297 $217 $269 $171 $258 $188 Equity total production cost per ounce sold $335 $331 $339 $210 $294 $226 Central Nine Months Ended Asia/ Total September 30, 2004 Zarafsha Ovacik Europe Gold Costs applicable to sales under GAAP $26.2 $22.8 $49.0 $1,446.9 Minority interest -- -- -- (195.2) Accretion expense (0.3) (0.3) (0.6) (12.9) Write-down of inventories -- (1.3) (1.3) (8.9) Purchased ore and other (0.1) -- (0.1) (15.6) Total cash cost for per ounce calculations 25.8 21.2 47.0 1,214.3 Accretion expense and other 0.3 0.2 0.5 12.5 Depreciation, depletion and amortization 8.1 15.7 23.8 407.5 Minority interest and other -- -- -- (77.4) Total production cost for per ounce calculations $34.2 $37.1 $71.3 $1,556.9 Equity ounces sold (000) 170.9 110.0 280.9 5,174.9 Equity cash cost per ounce sold $151 $193 $168 $235 Equity total production cost per ounce sold $200 $338 $254 $301 La Nine Months Ended Golden Herrad- September 30, 2003 Nevada Giant Holloway Canada Mesquite ura Costs applicable to sales under GAAP $456.0 $41.0 $15.4 $56.4 $7.6 $8.8 Minority interest -- -- -- -- -- -- Accretion expense (4.8) (1.2) (0.4) (1.6) (0.2) (0.1) Write-down of inventories (2.9) -- -- -- -- -- Purchased ore and other (10.9) -- -- -- -- -- Total cash cost for per ounce calculations 437.4 39.8 15.0 54.8 7.4 8.7 Accretion expense and other 4.8 1.2 0.4 1.6 0.2 0.1 Depreciation, depletion and amortization 103.4 15.0 3.8 18.8 3.6 2.5 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $545.6 $56.0 $19.2 $75.2 $11.2 $11.3 Equity ounces sold (000) 1,865.1 161.8 50.1 211.9 42.8 50.9 Equity cash cost per ounce sold $239 $246 $300 $259 $172 $171 Equity total production cost per ounce sold $299 $347 $384 $355 $261 $222 Nine Months Ended North Kori South September 30, 2003 America Yanacocha Kollo America Pajingo Yandal Costs applicable to sales under GAAP $528.8 $274.3 $32.6 $306.9 $32.5 $126.8 Minority interest -- (138.7) (3.9) (142.6) -- -- Accretion expense (6.7) (2.5) (1.8) (4.3) (0.1) (1.6) Write-down of inventories (2.9) -- -- -- -- (2.7) Purchased ore and other (10.9) -- -- -- -- -- Total cash cost for per ounce calculations 508.3 133.1 26.9 160.0 32.4 122.5 Accretion expense and other 6.7 2.5 1.8 4.3 (0.2) 1.5 Depreciation, depletion and amortization 128.3 124.4 5.6 130.0 20.7 30.2 Minority interest and other -- (54.3) (0.7) (55.0) -- -- Total production cost for per ounce calculations $643.3 $205.7 $33.6 $239.3 $52.9 $154.2 Equity ounces sold (000) 2,170.7 1,130.0 144.5 1,274.5 258.7 433.0 Equity cash cost per ounce sold $238 $118 $186 $125 $125 $283 Equity total production cost per ounce sold $302 $182 $232 $188 $205 $356 Australia Nine Months Ended /New September 30, 2003 Tanami Kalgoorlie Martha Zealand Minahasa Zarafshan Costs applicable to sales under GAAP $114.6 $83.4 $19.7 $377.0 $21.7 $25.7 Minority interest (4.2) -- (0.3) (4.5) -- -- Accretion expense (0.8) (1.1) (0.3) (3.9) (0.4) (0.2) Write-down of inventories (2.0) (1.0) (2.6) (8.3) (1.3) -- Purchased ore and other -- -- -- -- (1.3) -- Total cash cost for per ounce calculations 107.6 81.3 16.5 360.3 18.7 25.5 Accretion expense and other 0.1 1.1 0.1 2.6 0.4 0.2 Depreciation, depletion and amortization 27.5 6.9 8.2 93.5 5.8 8.0 Minority interest and other (1.0) -- (0.1) (1.1) (0.3) -- Total production cost for per ounce calculations $134.2 $89.3 $24.7 $455.3 $24.6 $33.7 Equity ounces sold (000) 449.3 309.2 73.5 1,523.7 81.2 171.9 Equity cash cost per ounce sold $239 $263 $225 $236 $231 $148 Equity total production cost per ounce sold $299 $289 $338 $299 $303 $196 Central Nine Months Ended September 30, 2003 Ovacik Asia/Europe Total Gold Costs applicable to sales under GAAP $17.6 $43.3 $1,277.7 Minority interest -- -- (147.1) Accretion expense (0.2) (0.4) (15.7) Write-down of inventories -- -- (12.5) Purchased ore and other -- -- (12.2) Total cash cost for per ounce calculations 17.4 42.9 1,090.2 Accretion expense and other 0.1 0.3 14.3 Depreciation, depletion and amortization 11.4 19.4 377.0 Minority interest and other -- -- (56.4) Total production cost for per ounce calculations $28.9 $62.6 $1,425.1 Equity ounces sold (000) 137.7 309.6 5,359.7 Equity cash cost per ounce sold $126 $138 $205 Equity total production cost per ounce sold $209 $202 $268 6. Reconciliation of Costs Applicable to Sales to Total Cash Cost Per Ounce, and Total Production Cost Per Ounce (dollars in millions except per ounce amounts) Three Months Ended Nine Months Ended September 30, 2003 September 30, 2003 Batu Batu Hijau Mina- Indo- Hijau Mina- Indo- (1) hasa nesia (1) hasa nesia Costs applicable to sales under GAAP $13.4 $4.6 $18.0 $38.1 $21.7 $59.8 Minority interest (0.1) - (0.1) (5.2) - (5.2) Accretion expense (0.3) (0.1) (0.4) (1.0) (0.4) (1.4) Write-down of inventories - - - - (1.3) (1.3) Purchased ore and other 5.0 (0.3) 4.7 12.1 (1.3) 10.8 Total cash cost for per ounce calculations 18.0 4.2 22.2 44.0 18.7 62.7 Accretion expense and other 0.3 0.1 0.4 1.0 0.4 1.4 Depreciation, depletion and amortization 9.8 2.4 12.2 25.4 5.8 31.2 Minority interest and other (4.3) (0.1) (4.4) (11.1) (0.3) (11.4) Total production cost for per ounce calculations $23.8 $6.6 $30.4 $59.3 $24.6 $83.9 Equity ounces sold (000) 116.5 23.1 139.6 262.7 81.2 343.9 Equity cash cost per ounce sold $154 $182 $159 $168 $231 $182 Equity total production cost per ounce sold $204 $285 $217 $226 $303 $244 (1) Cash and total production cost per ounce presented on a pro forma co-product basis. 7. Reconciliation of Batu Hijau Costs Applicable to Sales to Total Cash Cost Per Equity Pound, and Total Production Cost Per Equity Pound (dollars in millions except per pound amounts) Three Months Ended Nine Months Ended Batu Hijau September 30, September 30, 2004 2003 (1) 2004 2003 (1) Costs applicable to sales per financial statements $86.9 $25.4 $221.5 $86.5 Minority interest (39.4) 0.6 (100.4) (11.9) Accretion expense (0.4) (0.6) (1.3) (2.3) Smelting and refining 14.8 10.0 39.8 27.5 Total cash cost for per pound calculation 61.9 35.4 159.6 99.8 Accretion expense 0.4 0.6 1.3 2.4 Depreciation, depletion and amortization 22.3 19.0 64.9 57.6 Minority interest (9.7) (8.3) (28.4) (25.2) Total production cost for per pound calculation $74.9 $46.7 $197.4 $134.6 Equity copper sold (000 lbs) 111,285 103,246 291,951 264,290 Total cash cost per equity pound $0.56 $0.34 $0.55 $0.38 Total production cost per equity pound $0.67 $0.45 $0.68 $0.51 (1) 2003 cash and total production cost per pound presented on a pro forma co-product basis. 8. Reconciliation of Golden Grove Costs Applicable to Sales to Total Cash Cost Per Pound, and Total Production Cost Per Equity Pound (dollars in millions except per pound amounts) Three Months Ended September 30, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements $14.5 $8.3 $6.2 $4.7 $4.3 $0.4 Accretion expense (0.1) - (0.1) (0.1) - (0.1) Write-down inventories (4.5) (1.5) (3.0) (0.3) (1.1) 0.8 Smelting and refining and purchased concentrates 7.8 (0.2) 8.0 0.2 0.9 (0.7) Total cash cost for per pound calculation $17.7 $6.6 $11.1 $4.5 $4.1 $0.4 Total sold (000 lbs) n/a 7,417 27,325 n/a 8,711 9,504 Total cash cost per pound sold n/a $0.89 $0.40 n/a $0.47 $0.05 Nine Months Ended September 30, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements $45.8 $25.3 $20.5 $29.7 $22.1 $7.6 Accretion expense (0.4) (0.2) (0.2) (0.3) (0.2) (0.1) Write-down inventories (7.9) (2.3) (5.6) (7.1) (4.0) (3.1) Smelting and refining and purchased concentrates 23.1 2.4 20.7 16.5 7.2 9.3 Total cash cost for per pound calculation $60.6 $25.2 $35.4 $38.8 $25.1 $13.7 Total sold (000 lbs) n/a 29,605 92,443 n/a 46,167 63,132 Total cash cost per pound sold n/a $0.85 $0.38 n/a $0.54 $0.22 9. Reconciliation of Total Newmont Costs Applicable to Sales to Total Copper Cash Cost Per Equity Pounds, (dollars in millions except per pound amounts) Three Months Ended Nine Months Ended September 30, September 30, 2004 2003 (1) 2004 2003 (1) Costs applicable to sales per financial statements $95.2 $29.7 $246.8 $108.6 Minority interest (39.4) 0.6 (100.4) (11.9) Accretion expense (0.4) (0.6) (1.5) (2.5) Write-down inventories (1.5) (1.1) (2.3) - Smelting and refining 14.6 10.9 42.2 34.7 Total cash cost for per pound calculation $68.5 $39.5 $184.8 $128.9 Equity copper sold (000 lbs) 118,702 111,957 321,556 310,457 Total cash cost per equity pound $0.58 $0.35 $0.58 $0.40 (1) 2003 total cash cost per equity pound presented on a pro forma co-product basis. 10. Gold Hedge Position -- Current Maturity Summary (1) (000 ounces) Gold Put Price Capped Option Contracts Contracts Years Ozs Price(2) Ozs Price(2) 2004 48 $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 373 $310 2,350 $377 The mark-to-market value of the gold put option contracts was negative $9.5 million at September 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 third quarter earnings conference call and web cast presentation will be held on Wednesday, October 27, 2004 beginning at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time). To participate: Dial-In Number: (773) 756-4602 Leader: Randy Engel 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. Investor Contacts Randy Engel Telephone: (303) 837-6033 Email: randy.engel@newmont.com Wendy Yang Telephone: (303) 837-6141 Email: wendy.yang@newmont.com Jennifer Van Dinter Telephone: (303) 837-5165 Email: jennifer.vandinter@newmont.com Media Contacts Doug Hock Telephone: (303) 837-5812 Email: doug.hock@newmont.com 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 net income and cash flows to the gold and other metals prices; (v) the sensitivity of cash costs to the Australian dollars exchange rate; (vi) estimates of future capital expenditures, expenses and tax rates; (vii) estimates regarding timing of future production or closure activities; (viii) statements regarding future exploration results and the replacement of reserves; (ix) statements regarding future asset sales or rationalization efforts; and (x) 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- 10/27/2004 /CONTACT: Investors, Randy Engel, +1-303-837-6033, randy.engel@newmont.com, or Wendy Yang, +1-303-837-6141, wendy.yang@newmont.com, or Jennifer Van Dinter, +1-303-837-5165, jennifer.vandinter@newmont.com, or Media, Doug Hock, +1-303-837-5812, doug.hock@newmont.com, all of Newmont Mining Corporation/ /FIRST ADD -- SUPPLEMENTAL INFORMATION -- TO FOLLOW/ /Web site: http://www.newmont.com/ (NEM) CO: Newmont Mining Corporation ST: Colorado IN: MNG SU: ERN CCA