EX-99.1 3 pressrelease_ex-99.txt PRESS RELEASE News Release Q4 AND 2002 Results NEWMONT The Gold Company Full Year Net Income of $154 million, $0.42 per share; Fourth Quarter Net Income Triples DENVER, March 28, 2003 - Newmont Mining Corporation (NYSE: NEM) today announced 2002 net income applicable to common shares of $154.3 million ($0.42 per share), compared to a net loss of $54.1 million ($0.28 per share) in 2001. For the fourth quarter of 2002, Newmont earned $75.1 million ($0.19 per share), compared to net income of $18.4 million ($0.10 per share) for the fourth quarter of 2001. Performance highlights for 2002 included: o Equity gold sales of 7.6 million ounces at total cash costs of $189 per ounce (1); o Net cash provided by operating activities of $670.3 million; o Net debt to total capitalization ratio reduced by more than half to 20%; and o Excellent exploration results, replacing depletion of more than nine million ounces, resulting in year-end proven and probable gold reserves of 86.9 million equity ounces. Wayne W. Murdy, Chairman and Chief Executive Officer of Newmont, said: "With higher realized gold prices, we generated strong earnings growth with net income of $154 million and operating cash flow of $670 million. With continued strength in the gold market, 2003 should be another exciting year for the company with strong bottom-line earnings growth."
Twelve Months Fourth Quarter 2002 2001 2002 2001 Financial (in millions, except per share) Sales and other income $2,745.0 $1,674.1 $815.1 $454.7 Net cash provided by operating activities $670.3 $369.7 $225.2 $146.7 Net income (loss) applicable to common shares $154.3 ($54.1) $75.1 $18.4 Net income (loss) per common share, basic $0.42 ($0.28) $0.19 $0.10 Operating Equity gold sales (000 ozs) 7,632 5,466 2,216 1,413 Average realized price ($/oz) $313 $271 $328 $279 Total cash costs ($/oz)1 $189 $184 $178 $182
1. For a reconciliation of total cash costs per ounce (a non-GAAP measure of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 1 of 25 NEWMONT 2002 and Fourth Quarter Results Net income applicable to common shares was $154.3 million ($0.42 per share) for 2002, a substantial improvement over a net loss of $54.1 million ($0.28 per share) in 2001. Net income for 2002 before the cumulative effect of a change in accounting principle was $146.6 million ($0.39 per share). The company's improved performance in 2002 was the result of higher gold sales, a $42 per ounce higher realized gold price, a 128% increase in equity income of affiliates (primarily from Batu Hijau) to $51.4 million, and pre-tax royalty revenue of $35.7 million, offsetting higher costs and expenses. The results of the acquired Normandy and Franco-Nevada operations have been included in Newmont's results of operations from February 16, 2002 forward. The company generated strong operating cash flow of $670.3 million and $225.2 million for the year and quarter, respectively. Operating cash flows and the proceeds from non-core asset sales enabled the company to fund $300 million in capital expenditures and to reduce net borrowings by $547 million. For 2002, total cash costs were $189 an ounce, an increase of 3% from 2001. Higher cash costs were primarily driven by lower ore grades at some operations, an appreciating Australian dollar and higher fuel prices. Operating income totaled $256.1 million for 2002 versus an operating loss of $64.8 million for 2001. Operating income was impacted by higher than planned exploration and general and administrative costs, partially related to integration costs, as well as a $48.1 million write-down of assets. Of the asset write-downs, $36.2 million was related to the reduction of inventories to the lower of average cost or net realizable value as a result of a change in accounting policy to include depreciation in inventory. For 2002, the company incurred a non-cash loss on derivative instruments, primarily attributable to the acquired Normandy gold hedge books, of $39.8 million ($0.11 per share) before tax. For the fourth quarter of 2002, the company earned net income applicable to common shares of $75.1 million ($0.19 per share), up 308% from the comparable quarter of 2001. A 57% increase in equity gold ounces sold at a higher realized price of $328 an ounce and $12.8 million in royalty revenue resulted in a 79% increase in sales and other income versus the year ago quarter. Operating income was $99.4 million in the fourth quarter, compared to an operating loss of $15.3 million in the fourth quarter of 2001. During the quarter, the company incurred a non-cash loss on derivative instruments, primarily attributable to the acquired Normandy gold hedge books, of $25.4 million ($0.06 per share) before tax. Further, the company recorded a tax benefit of $21.9 million during the quarter as it recognized additional depletion benefits and resolved tax issues associated with prior years. Operating Highlights North America 2002 Q4 2002 Q4 2001 Equity gold sales (000 ozs) 3,224 932 855 Total cash costs ($/oz) (1) $220 $199 $213 o For the year, the Nevada operations sold 2.7 million ounces at a total cash cost of $225 an ounce, both marginally higher compared to 2001. o During the quarter, the Nevada operations sold 796,000 equity ounces, an 11% increase over the fourth quarter of 2001. Production from refractory ores increased to 568,000 ounces (+27%) due to a combination of higher-grade ore milled and improved recovery. Total cash costs declined 9% from a year ago. South America 2002 Q4 2002 Q4 2001 Equity gold sales (000 ozs) 1,426 411 337 Total cash costs ($/oz) (1) $131 $119 $121 o For the year, Yanacocha sold 1.18 million equity ounces at a total cash cost of $125 an ounce. Higher costs over 2001 were mainly attributable to lower grade ore. Gold sold increased by 20% as lower grades were more than offset by increased tons placed on the leach pads. o Yanacocha sold 354,000 equity ounces during the quarter, a 34% increase over the fourth quarter of Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 2 of 25 NEWMONT 2001. Total cash costs for the quarter were 3% lower at $112 an ounce. Australia 2002 Q4 2002 Q4 2001 Equity gold sales (000 ozs) 1,685 513 35 Total cash costs ($/oz) (1) $191 $190 $96 o The Australian operations were part of the Normandy acquisition on February 15, 2002, reflecting 10.5 months of results for 2002, except for Pajingo, which had been 50% owned by Newmont and became wholly owned with the Normandy acquisition. This 10.5-month time frame is referred to as the "relevant period." o Pajingo was the outstanding performer in 2002, selling 296,000 equity ounces at a total cash cost of $95 an ounce. Pajingo is the company's lowest cost gold producer. o Tanami sold 452,000 equity ounces at a total cash cost of $205 an ounce in the relevant period. Higher cash costs were due to increased royalty payments, higher processing costs due to harder than expected ores at Groundrush and higher than expected mining costs at Callie. o Yandal sold 611,000 ounces at a total cash cost of $215 an ounce in the relevant period. Overall, higher than expected sales were offset by higher than forecast total cash costs, partially attributable to Bronzewing due to the one-off transition cost of the change from contractor to owner-mining during 2002. o Kalgoorlie sold 325,000 equity ounces at a total cash cost of $215 an ounce in the relevant period. A joint venture committee is evaluating alternatives to improve operating efficiencies and recommendations are expected by June 2003. Batu Hijau (Indonesia) 2002 Q4 2002 Q4 2001 Equity copper sales (million lbs.) 362 91 77 Equity gold sales (000 ozs) 278 78 60 Net cash costs ($/lb Cu) (1) $0.31 $0.30 $0.42 o Batu Hijau had another impressive year and continues to exceed expectations. Batu Hijau is now one of the world's lowest net cash cost copper producers. o For 2002, copper sales were marginally higher (+1%) than the prior year, as lower grades were off-set by higher throughput. Copper recovery was unchanged at 89%. Net cash costs (net of by-product credits) were $0.31 a pound, a reduction of 16% from 2001. o For the quarter, copper sales were up 17% and gold sales were up 30% as higher grades and recovery rates more than offset marginally lower throughput rates. Other Operations 2002 Q4 2002 Q4 2001 Equity gold sales (000 ozs) 637 170 126 Total cash costs ($/oz) (1) $155 $166 $157 o At Zarafshan in Uzbekistan, 256,000 equity ounces were sold in 2002, 15% more than 2001, as the average ore grade improved. Total cash costs were marginally lower at $134 an ounce. For the quarter, sales and total cash costs were similar to the prior year period. o At Ovacik in Turkey, a former Normandy mine, 126,000 ounces were sold at a total cash cost of $122 an ounce in the relevant period. This was the first full year of operations at Ovacik. o At Martha in New Zealand, a former Normandy mine, 108,000 equity ounces were sold at a total cash cost of $156 an ounce in the relevant period. Sales were as expected, but ground subsidence issues adversely impacted costs. o At Minahasa in Indonesia, 147,000 equity ounces were sold at a total cash cost of $218 an ounce, both essentially as expected. The operation has ceased mining but production continues from the processing of lower grade stockpiles. o At the Golden Grove zinc-copper mine, a former Normandy mine, 148 million pounds of zinc and 45.7 million pounds of copper were sold at cash costs per pound of $0.18 and $0.56, respectively, in Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 3 of 25 NEWMONT the relevant period. The mine's results were better than expected for both metal sales and costs. The mine also sold 13,600 ounces of gold. 1. For a reconciliation of total cash costs per ounce (a non-GAAP measure of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. Financial Highlights - 2002 Debt Reduction During 2002, Newmont reduced its net debt to total capitalization ratio from approximately 42% to 20% as it made net debt repayments of $547 million. The company continues to strengthen its balance sheet and has a long-term target of approximately 10% net debt to total capitalization. Cash Position Cash and cash equivalents totaled $401.7 million at the end of 2002, an increase of 169% from a year ago. Non-core asset sales totaled $241 million for the year (including pre-acquisition sales initiated by Franco-Nevada and Normandy). An additional $180 million was received on January 31, 2003, from the sale of the company's TVX-Newmont Americas joint venture interest. Australian Gold Hedge Books In line with the company's no-hedging philosophy, the Australian gold hedge books were reduced by 434,000 committed ounces and 105,000 uncommitted ounces during the fourth quarter. At year-end 2002, the acquired Australian gold hedge books stood at 5.15 million committed ounces and 1.5 million uncommitted ounces, with a negative mark-to-market valuation of $433 million. Approximately 67% of the negative mark-to-market valuation relates to the Yandal Operations hedge book, which is non-recourse to Newmont. Minimum scheduled deliveries for 2003 are in excess of 1.1 million committed ounces. As of March 26, 2003, the company had repurchased 804,000 committed ounces and delivered 449,000 committed ounces for the year, reducing its committed hedge position to 3.9 million ounces. Newmont will continue to evaluate opportunities to further deliver into, close out and simplify these gold hedge books. ACCOUNTING As requested by Newmont, PricewaterhouseCoopers has completed its reaudit of the company's 1999 through 2001 financial statements. As a result of the re-audit, certain corrections were required to the previously reported financial statements. In addition to the previously announced restatements for a prepaid forward gold sales contract and changes in depreciation calculations, the company is changing its deferred stripping calculations at the Batu Hijau operation to exclude in-pit, non-reserve material and is changing its inventory accounting policy to include depreciation in inventory. The net cumulative impact of the restatements was an increase in stockholders' equity at December 31, 2001 of $19.7 million. (Refer to page 10 - Supplemental Information - for further details of these restatements.) As a result of the restatements, the company will also be restating its previously reported 2002 and 2001 quarterly financial results. These restatements had a nominal impact on 2002 net income. As previously reported, in order to conform to the currently preferred accounting methodology, the company changed the way it calculates depreciation at underground mining operations and recorded a positive, cumulative adjustment, net of tax, of $7.7 million ($0.02 per share) effective January 1, 2002. In a previous news release issued by the company on February 24, 2003, the company stated that it had requested the Securities and Exchange Commission's (SEC) concurrence with the company's allocation of the purchase price related to the 2002 acquisitions of Normandy and Franco-Nevada and with the company's methodology for future testing for impairment of goodwill. Although the company provided and discussed such purchase price allocation and methodology with the SEC, its review does not constitute its approval or concurrence therewith. The acquisitions were accounted for using the purchase method of accounting whereby the assets acquired and liabilities assumed were recorded at their fair market values as of the date of acquisition. The excess of the purchase price over such fair value was recorded as goodwill. Goodwill and other identifiable intangibles not subject to amortization will be reviewed for possible impairment at least annually. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 4 of 25 NEWMONT DIVIDEND INCREASE On January 29, 2003, the Board of Directors approved a 33% increase in the quarterly dividend to $0.04 per share. Wayne W. Murdy, Chairman and Chief Executive Officer, commented: "With the integration of our recent three-way merger complete and the positive outlook for the gold price, the Board felt it appropriate to reward shareholders for their patience by increasing the dividend immediately. We will continue to evaluate our dividend policy going forward." Exploration & Reserve Update Exploration and research expenditures totaled $88.9 million and $33.2 million for the year and fourth quarter, respectively. Commenting on the exploration results, Newmont's President Pierre Lassonde said: "For 2002, we made reserve replacement a company-wide responsibility and the results speak for themselves. Through the collective skills of our operating and exploration employees, our proprietary technology and unparalleled land position in some of the world's best gold districts, we were able to replace depletion of more than nine million ounces. The positive momentum is being maintained and our objective is to increase reserves in 2003." As reported in the company's February 24, 2003 news release, year-end gold reserves were 86.9 million ounces, at a $300 gold price assumption. Reported reserves include 3.7 million ounces from the company's equity interests in the TVX-Newmont Americas joint venture, which was sold effective January 31, 2003, and in Echo Bay, which was converted into a 13.8% equity interest in Kinross Gold on the same date. Excluding the 3.7 million ounces, year-end reserves of 83.2 million ounces were essentially unchanged from 2001 pro-forma reserves. Reserves were added at all four core operating regions, as well as at the greenfields Akyem project in Ghana. Highlights include: o In Nevada, the Carlin Trend operations replaced depletion for the first time since 1996; o At Minera Yanacocha in Peru, the Corimayo deposit was brought into reserves; o In Australia, reserves were replaced as the high-grade Westside discovery at Jundee was brought into reserves; o At Batu Hijau in Indonesia, copper and gold reserves increased by approximately 13 percent, despite using a lower long-term copper price assumption of $0.75 per pound; and o At Akyem in Ghana, 1.6 million equity ounces were brought into reserves. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 5 of 25 NEWMONT STATEMENTS OF CONSOLIDATED OPERATIONS Three months ended December 31 2002 2001 (in millions, except per share) ------------------------- Sales and other income: Sales - gold $777.3 $450.3 Sales - base metals, net 8.7 - Royalties 12.8 0.2 Dividends, interest, foreign currency exchange and other income 16.3 4.2 ------------------------- 815.1 454.7 ------------------------- Costs and expenses: Costs of sales - gold 429.7 283.8 Costs of sales - base metals 6.0 - Depreciation, depletion and amortization 146.2 79.6 Exploration and research 33.2 12.1 General and administrative 36.6 16.6 Interest, net of capitalized interest 30.3 26.7 Write-down of assets 10.2 47.8 Other 23.3 3.4 ------------------------- 715.5 470.0 ------------------------- Operating income (loss) 99.6 (15.3) Gain (loss) on derivative instruments (25.4) - ------------------------- Pre-tax income (loss) before minority interest and equity income of affiliates 74.2 (15.3) Income tax benefit 21.9 47.1 Minority interest in income of affiliates (35.1) (20.7) Equity income of affiliates 14.1 9.1 ------------------------- Net income 75.1 20.2 Preferred stock dividends - (1.8) ------------------------- Net income applicable to common shares $75.1 $18.4 ========================= Net income per common share, basic and diluted $0.19 $0.10 ========================= Basic weighted average shares outstanding 401.7 195.1 ========================= Diluted weighted average shares outstanding 403.0 195.1 ========================= Cash dividends declared, per common share $0.03 $0.03 ========================= STATEMENTS OF CONSOLIDATED OPERATIONS For the years ended December 31 2002 2001 (in millions, except per share) ---------------------------- Sales and other income: Sales - gold $2,566.8 $1,666.1 Sales - base metals, net 55.3 - Royalties 35.7 0.6 Gain on sale of Lihir 47.3 - Dividends, interest, foreign currency exchange and other income 39.9 7.4 ---------------------------- 2,745.0 1,674.1 ---------------------------- Costs and expenses: Costs of sales - gold 1,536.3 1,092.8 Costs of sales - base metals 35.6 - Depreciation, depletion and amortization 505.6 301.6 Exploration and research 88.9 55.5 General and administrative 115.2 61.2 Interest, net of capitalized interest 129.6 98.1 Write-down of assets 48.1 57.8 Merger and restructuring - 60.5 Other 29.6 11.5 ---------------------------- 2,488.9 1,739.0 ---------------------------- Operating income (loss) 256.1 (64.9) Gain (loss) on derivative instruments (39.8) 1.8 ---------------------------- Pre-tax income (loss) before minority interest, equity income of affiliates and cumulative effect of a change in accounting principle 216.3 (63.1) Income tax (expense) benefit (19.9) 59.3 Minority interest in income of affiliates (97.5) (65.4) Equity income of affiliates 51.4 22.6 ---------------------------- Net income (loss) before cumulative effect of change in accounting principle 150.3 (46.6) Cumulative effect of change in accounting principle, net of tax 7.7 - ---------------------------- Net income (loss) 158.0 (46.6) Preferred stock dividends (3.7) (7.5) ---------------------------- Net income (loss) applicable to common shares $154.3 ($54.1) ============================ Net income (loss) per common share, basic before cumulative effect $0.40 ($0.28) Cumulative effect of change in accounting principle, per common share $0.02 - ---------------------------- Net income (loss) per common share, basic $0.42 ($0.28) ============================ Net income (loss) per common share, diluted before cumulative effect $0.39 ($0.28) Cumulative effect of change in accounting principle, per common share $0.02 - ---------------------------- Net income (loss) per common share, diluted $0.41 ($0.28) ============================ Basic weighted average shares outstanding 370.9 195.1 ============================ Diluted weighted average shares outstanding 373.0 195.1 ============================ Cash dividends declared, per common share $0.12 $0.12 ============================ Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 6 of 25 NEWMONT CONSOLIDATED BALANCE SHEETS At December 31 2002 2001 (in millions) ------------- -------------- Assets Cash and cash equivalents $401.7 $149.4 Inventories 498.3 452.1 Other current assets 213.3 245.5 ------------- -------------- 1,113.3 847.0 Property, plant and mine development, net 2,317.9 1,930.2 Mineral interests, intangible assets and other 1,415.3 177.0 Investments 1,133.4 543.3 Goodwill 3,024.6 - Deferred income tax assets 761.4 403.5 Other long-term assets 388.6 240.7 ------------- -------------- Total assets $10,154.5 $4,141.7 ============= ============== Liabilities Current portion of long-term debt $115.3 $192.2 Derivative instruments 75.0 - Accounts payable 105.3 - Accrued liabilities and other 369.4 294.9 Deferred income tax liabilities 28.5 32.9 ------------- -------------- 693.5 520.0 Long-term debt 1,701.3 1,234.7 Derivative instruments 388.7 - Deferred income tax liabilities 656.4 140.8 Reclamation and remediation liabilities 302.6 176.9 Other long-term liabilities 638.2 306.7 ------------- -------------- Total liabilities 4,380.7 2,379.1 Minority interest 354.6 262.8 Stockholders' equity 5,419.2 1,499.8 ------------- -------------- Total liabilities, minority interest and stockholders' equity $10,154.5 $4,141.7 ============= ============== STATEMENT OF CONSOLIDATED CASH FLOWS For the years ended December 31 2002 2001 (in millions) -------------------------------- Net income (loss) $158.0 ($46.6) Adjustments to reconcile net income (loss) to net cash provided by operating activities Depreciation, depletion and amortization 505.6 301.6 Amortization of deferred stripping costs, net 37.2 37.4 Deferred tax benefit (100.3) (91.5) Write-down of assets 48.1 57.8 Cumulative effect of change in accounting principle, net (7.7) - Gain on marketable securities of Lihir (47.3) - Minority interest and other items 64.2 50.3 -------------------------------- 657.8 309.0 Decrease (increase) in operating assets and liabilities 12.5 60.7 -------------------------------- Net cash provided by operating activities 670.3 369.7 Additions to property, plant and mine development (300.0) (389.9) Sale of short-term investments 404.4 - Cash received from acquisitions, net 371.4 - Cash consideration for Normandy shares (461.7) - Sale of marketable securities of Lihir 84.0 - Settlement of cross currency swaps 50.8 - Other (36.8) 4.9 -------------------------------- Net cash provided by (used in) investing activities 112.1 (385.0) Net (repayments)borrowings (547.4) 70.0 Proceeds from stock issuances 67.3 7.5 Dividends paid on common and preferred stock (50.0) (31.0) Other - 38.6 -------------------------------- Net cash (used in) provided by financing activities (530.1) 85.1 Effect of exchange rate changes on cash - 2.1 -------------------------------- Net change in cash and cash equivalents 252.3 71.9 Cash and cash equivalents at beginning of year 149.4 77.5 -------------------------------- Cash and cash equivalents at end of year $401.7 $149.4 ================================ Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 7 of 25 NEWMONT OPERATING STATISTICS SUMMARY
North America South America Australia Other (1) Equity Investments (2) Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Production Costs ($/oz) Direct mining and production costs $179 $190 $119 $121 $202 $88 $165 $153 - - Capitalized mining & other 14 19 (4) (3) (25) - (2) 2 - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Cash operating costs 193 209 115 118 177 88 163 155 - - Royalties and production taxes 6 4 4 3 13 8 3 2 - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Total Cash Costs 199 213 119 121 190 96 166 157 - - Reclamation and mine closure costs 4 4 5 4 5 5 13 5 - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Total Costs Applicable to Sales (5) 203 217 124 125 195 101 179 162 - - Non-cash inventory adjustment - - - - 22 - 15 - - - Depreciation and amortization(4) 47 46 55 47 199 36 54 79 - - Depreciation and amortization adjustment - - - - (144) - 15 - - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Total Production Costs(4) $250 $263 $179 $172 $272 $137 $263 $241 - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ ------- Consolidated gold sales (000 ozs.)(3) 932.0 855.4 754.4 597.1 535.1 35.1 171.6 125.5 Equity gold sales (000 ozs) (3) 932.0 855.4 411.3 337.3 513.0 35.1 169.5 125.5 186.6 59.9 Average realized price per equity ounce $325 $280 $323 $277 $327 $279 $322 $281 - - ---------------------------------------- ------- ------- ------ ------- ------- ------ ------- -------- ------ -------
Total Three months ended December 31 2002 2001 ---------------------------------------- -------- -------- Production Costs ($/oz) Direct mining and production costs $171 $166 Capitalized mining & other - 13 ---------------------------------------- -------- -------- Cash operating costs 171 179 Royalties and production taxes 7 3 ---------------------------------------- -------- -------- Total Cash Costs 178 182 Reclamation and mine closure costs 5 4 ---------------------------------------- -------- -------- Total Costs Applicable to Sales (5) 183 186 Non-cash inventory adjustment 7 - Depreciation and amortization(4) 87 49 Depreciation and amortization adjustment (35) - ---------------------------------------- -------- -------- Total Production Costs(4) $242 $235 ---------------------------------------- -------- -------- Consolidated gold sales (000 ozs.)(3) 2,396.4 1,613.1 Equity gold sales (000 ozs) (3) 2,215.7 1,413.2 Average realized price per equity ounce $328 $279 ---------------------------------------- -------- --------
Copper Summary Equity copper production (million lbs) 103.7 77.2 Equity copper sales (million lbs) 98.8 77.5 Net cash cost per equity pound ($/lb) $0.32 $0.42 Average realized price ($/lb) $0.76 $0.66
North America South America Australia Other (1) Equity Investments (2) Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 2002 2001 ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Production Costs ($/oz) Direct mining and production costs $205 $204 $130 $124 $186 $97 $159 $128 - - Capitalized mining & other 9 9 (3) (2) (6) 1 (7) 10 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Cash operating costs 214 213 127 122 180 98 152 138 - - Royalties and production taxes 6 4 4 3 11 7 3 1 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Total Cash Costs 220 217 131 125 191 105 155 139 - - Reclamation and mine closure costs 2 5 3 3 6 1 5 3 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Total Costs Applicable to Sales (5) 222 222 134 128 197 106 160 142 - - Non-cash inventory adjustment - - - - 9 - 6 - - - Depreciation and amortization(4) 50 47 55 51 94 34 51 61 - - Depreciation and amortization adjustment (1) - - - (35) - 18 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Total Production Costs(4) $271 $269 $189 $179 $265 $140 $235 $203 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------ Consolidated gold sales (000 ozs)(3) 3,224.0 3,223.6 2,575.4 2,226.8 1,759.0 126.0 645.9 565.4 - - Equity gold sales (000 ozs) (3) 3,224.0 3,223.6 1,426.3 1,257.9 1,684.6 126.0 636.5 563.5 646.7 295.1 Average realized price per equity ounce $312 $272 $311 $271 $318 $271 $311 $270 - - ---------------------------------------- -------- ------- -------- -------- -------- ------ -------- ------- ------- ------
Total Year ended December 31 2002 2001 ---------------------------------------- -------- -------- Production Costs ($/oz) Direct mining and production costs $179 $173 Capitalized mining & other 2 7 ---------------------------------------- -------- -------- Cash operating costs 181 180 Royalties and production taxes 8 4 ---------------------------------------- -------- -------- Total Cash Costs 189 184 Reclamation and mine closure costs 3 3 ---------------------------------------- -------- -------- Total Costs Applicable to Sales (5) 192 187 Non-cash inventory adjustment 3 - Depreciation and amortization(4) 62 50 Depreciation and amortization adjustment (7) - ---------------------------------------- -------- -------- Total Production Costs(4) $250 $237 ---------------------------------------- -------- -------- Consolidated gold sales (000 ozs)(3) 8,217.9 6,141.8 Equity gold sales (000 ozs) (3) 7,631.7 5,466.1 Average realized price per equity ounce $313 $271 ---------------------------------------- -------- --------
Copper Summary Equity copper production (million lbs) 430.9 369.5 Equity copper sales (million lbs) 407.9 360.0 Net cash cost per equity pound ($/lb) $0.34 $0.37 Average realized price ($/lb) $0.73 $0.70 Notes: 1. Other includes Ovacik (Turkey), Zarafshan (Uzbekistan), Minahasa (Indonesia) and Martha (New Zealand). 2. Equity investments comprise Batu Hijau, TVX-Newmont Americas and Echo Bay Mining Limited. 3. Includes 3,300 ounces for the fourth quarter and 13,600 for the year, respectively, from the wholly-owned Golden Grove zinc/copper mine. 4. Items impacted by accounting restatement and/or accounting changes. 5. For a reconciliation of total cash costs per ounce (a non-GAAP measure of performance) to costs applicable to sales, please refer to the Supplemental Information attached. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 8 of 25 NEWMONT 2003 GUIDANCE Equity Gold Total Sales(1) Cash Costs (000 oz) ($/oz) (2) ---------------------------------- ------------------ -------------- North America Nevada (100%) 2,550 $215 Mesquite (100%) 35 $160 Golden Giant (100%) 200 $252 Holloway (84.65%) 75 $255 La Herradura (44%) 75 $157 ------------------ -------------- Sub-total ~2,850-2,980 ~$215-$221 ------------------ -------------- South America Yanacocha (51.35%) 1,300 $115 Kori Kollo (88%) 125 $240 ------------------ -------------- Sub-total ~1,425-1,475 ~ $123-$129 ------------------ -------------- Australia Kalgoorlie (50%) 340 $275 Pajingo (100%) 345 $110 Tanami (85.86%) 600 $215 Yandal (100%) 640 $257 ------------------ -------------- Sub-total ~1,905-1,940 ~$221-$226 ------------------ -------------- Other Martha (92.28%) 100 $188 Zarafshan (50%) 210 $152 Minahasa (94%) 90 $239 Ovacik (100%) 130 $165 ------------------ -------------- Sub-total ~500-520 ~$176-$183 ------------------ -------------- Equity Investments Batu Hijau (56.25%) 270 - ------------------ -------------- TOTAL ~7,000-7,200 ~$193-$200 ------------------ -------------- NOTES: 1. Equity gold sales at operating sites represent the midpoint of the guidance range. 2. For a reconciliation of total cash costs per ounce (a non-GAAP measure of performance) to costs applicable to sales calculated and presented under GAAP, please refer to the Supplemental Information attached. 3. Ownership or economic interests are as at December 31, 2002. Equity Copper & Zinc Sales (million Cash Costs pounds) ($/lb) ------------------------------------- ---------------- ---------------- Batu Hijau (56.25%) - Copper ~340-360 ~$0.28-$0.30 Golden Grove (100%) - Copper ~35-45 ~$0.62-$0.66 Golden Grove (100%) - Zinc ~180-190 ~$0.26-$0.29 Financial Projections (in millions, except tax rate) Royalty revenue $38 - $42 Depreciation, depletion and amortization $560 - $590 Exploration, research and development $95 - $100 General and administrative $90 - $95 Interest expense, net $90 - $95 Tax rate (assuming $340/oz gold) 20% - 25% Capital expenditures $560 - $590 Sensitivity to Changes in the Gold Price An annualized $1 change in the gold price changes annual earnings per share by approximately $0.01, assuming all other factors remain constant. An annualized $1 change in the gold price changes annual cash generated by operating activities by approximately $5.3 million, assuming all other factors remain constant. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 9 of 25 NEWMONT Supplemental Information 1. after-tax Summary of Restatements (in millions)
Years Ended December 31 -------------------------------------------------------------------------------- Pre-1999 1999 2000 2001 Cumulative -------------------------------------------------------------------------------- Net Loss Applicable to Common Shares, as Previously Reported (102.0) (102.4) (30.8) -------------------------------------------------------------------------------- Prepaid Forward (1) - (3.6) (1.3) (1.1) (6.0) Batu Hijau - Depreciation (2) - 0.3 (2.9) (3.2) (5.8) Batu Hijau - Deferred stripping (3) - (0.5) (2.3) (2.2) (5.0) Yanacocha - Depreciation (4) 4.2 1.6 (1.6) (3.3) 0.9 Inventory (5) 48.4 (15.1) 13.3 (13.5) 33.2 -------------------------------------------------------------------------------- Total adjustments to net loss 52.6 (17.2) 5.2 (23.3) 17.3 -------------------------------------------------------------------------------- Net Loss Applicable to Common Shares, as Restated (119.2) (97.2) (54.1) =================================================
Shareholders' Equity at December 31, 2001 as Previously Reported 1,480.1 Adjustments to net loss (above) 17.3 Accumulated other comprehensive income (1) 2.4 ------------ Increase in shareholders' equity 19.7 ------------ Shareholders' Equity at December 31, 2001 as Restated 1,499.8 ============
Notes: 1. As previously disclosed in release dated October 23, 2002. Prepaid forward recategorized as Long-Term Debt. 2. As previously disclosed in release dated November 12, 2002. Exclusion of non-reserve material from depreciation calculations. 3. Exclusion of non-reserve material from deferred stripping calculation. 4. As previously disclosed in released dated November 12, 2002. Corrected depreciation on certain asset categories. 5. Inclusion of depreciation in inventory. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 10 of 25 NEWMONT 2. Gold Hedge Position - Current Maturity Summary (1) (ooo ounces)
Acquired Normandy Gold Hedge Books Legacy Newmont Hedge Book Gold Put Options Gold Forward Convertible Put Price Capped Contracts Contracted Options & Other Contracts Instruments (2) (4) Years Ozs Price (3) Ozs Price (3) Ozs Price (3) Ozs Price (3) 2003 316 $299 1,061 $298 46 $311 2004 291 $300 1,140 $300 37 $311 2005 461 $312 368 $302 82 $308 500 $350 2006 169 $340 363 $323 65 $305 2007 20 $397 290 $331 181 $335 2008 118 $341 80 $305 933 $324 1,000 $384 2009 170 $345 30 $348 300 $373 600 $381 2010 208 $390 2011 209 $400 250 $392 Total/Average (1) 1,544 $317 3,332 $305 2,059 $345 2,350 $377
The mark-to-market value of the Normandy gold hedge books was negative $433 million at December 31, 2002. The breakdown of this is as follows: o Newmont Gold Treasury Pty Ltd: negative $122 million; o Newmont NFM: negative $23 million; and o Newmont Yandal Operations Limited: negative $288 million. The following table shows the approximate sensitivities of the US$ mark-to-market value of the Normandy gold hedge books to certain market variables as of December 31, 2002:
Market Variables Change in Variable Change in Mark-to-Market Value (millions) ----------------------------------- -------------------------------------- -------------------------------------- A$ Interest Rates +/-1.0% -/+ $40.0 US$/A$ Exchange Rates +/- US$0.01 +/-$35.4 Gold Lease Rates +/-1.0% +/-$15.2 US$ Interest Rates +/-1.0% -/+$10.5 US$ Gold Price/oz. +/-$1.00 -/+$6.6
Notes: 1. For more detailed descriptions, definitions and explanations, refer to the company's 2002 Form 10-K. 2. Convertible Put Options and Other Instruments are comprised of the following: a. Convertible option contracts; b. Knock-out/knock-in option contracts; c. Indexed forward contracts; and d. 600,000 ounces of a US$-to-gold swap contract maturing in 2008. 3. 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 outflow 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. 4. As of December 31, 2002 Newmont had a sold gold convertible position of 240,000 ounces. This position was originally overlaid with a bought convertible position, however, the bought position was closed out during the fourth quarter. This sold put position is not included in the above table. Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 11 of 25 NEWMONT 3. GOLD PRODUCTION SUMMARY - AMERICAS
Nevada Canada Peru Bolivia ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Tons Mined (000 dry short tons) Open-Pit 39,068 33,583 n/a n/a 50,259 44,607 4,045 5,370 Underground 558 295 450 410 n/a n/a n/a n/a Tons Processed (000 dry short tons) Oxide 1,390 1,522 448 402 n/a n/a n/a n/a Refractory 2,219 1,972 n/a n/a n/a n/a 1,929 1,841 Leach 3,445 7,194 n/a n/a 39,748 26,801 1,815 1,692 Average Ore Grade (oz/ton) Oxide 0.107 0.109 0.243 0.239 n/a n/a n/a n/a Refractory 0.247 0.223 n/a n/a n/a n/a 0.041 0.059 Leach 0.029 0.031 n/a n/a 0.024 0.025 0.017 0.021 Average Mill Recovery Rate (%) Oxide 72.6% 70.0% 94.9% 94.9% n/a n/a n/a n/a Refractory 90.4% 88.0% n/a n/a n/a n/a 64.8% 61.5% Ounces Produced (000) 801.8 715.1 103.3 94.0 696.1 522.9 65.7 85.1 Equity Ounces Produced (000) Oxide 121.7 127.0 103.3 94.0 n/a n/a n/a n/a Refractory 568.0 447.4 n/a n/a n/a n/a 45.2 59.9 Leach 112.1 140.7 n/a n/a 357.4 268.5 12.6 15.1 ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Total 801.8 715.1 103.3 94 357.4 268.5 57.8 75.0 Equity Ounces Sold (000) 796.4 716.6 107.0 112.5 353.8 263.6 57.5 73.7 ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Production Costs ($/oz) Direct mining and production costs $176 $190 $202 $178 $110 $115 $172 $143 Capitalized mining & other 17 25 1 1 (3) (2) (7) (4) ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Cash operating costs 193 215 203 179 107 113 165 139 Royalties and production taxes 7 4 1 - 5 3 - - ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Total Cash Costs 200 219 204 179 112 116 165 139 Reclamation and mine closure costs 3 4 6 6 3 3 13 5 ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Total Costs Applicable to Sales 203 223 210 185 115 119 178 144 Non-cash inventory adjustment - - - - - - - - Depreciation and amortization 42 41 80 64 55 45 53 57 Depreciation and amortization adjustment - - - - - - - - ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Total Production Costs $245 $264 $290 $249 $170 $164 $231 $201 ------------------------------------------------- --------- ------- -------- -------- -------- -------- -------- -------- Other (1) ------------------------------------------------- -------- -------- Three months ended December 31 2002 2001 ------------------------------------------------- -------- -------- Tons Mined (000 dry short tons) Open-Pit 2,752 3,063 Underground n/a n/a Tons Processed (000 dry short tons) Oxide n/a n/a Refractory n/a n/a Leach 1,010 885 Average Ore Grade (oz/ton) Oxide n/a n/a Refractory n/a n/a Leach 0.026 0.025 Average Mill Recovery Rate (%) Oxide n/a n/a Refractory n/a n/a Ounces Produced (000) 28.6 26.3 Equity Ounces Produced (000) Oxide n/a n/a Refractory n/a n/a Leach 28.6 26.3 ------------------------------------------------- -------- -------- Total 28.6 26.3 Equity Ounces Sold (000) 28.6 26.3 ------------------------------------------------- -------- -------- ------------------------------------------------- -------- -------- Production Costs ($/oz) Direct mining and production costs $171 $211 Capitalized mining & other (4) (31) ------------------------------------------------- -------- -------- Cash operating costs 167 180 Royalties and production taxes 3 5 ------------------------------------------------- -------- -------- Total Cash Costs 170 185 Reclamation and mine closure costs 2 3 ------------------------------------------------- -------- -------- Total Costs Applicable to Sales 172 188 Non-cash inventory adjustment - - Depreciation and amortization 79 86 Depreciation and amortization adjustment - - ------------------------------------------------- -------- -------- Total Production Costs $251 $274 ------------------------------------------------- -------- --------
Notes: 1. Other includes La Herradura (Mexico) and Mesquite (California). Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 12 of 25 NEWMONT 3. GOLD PRODUCTION SUMMARY - AMERICAS (CONTINUED)
Nevada Canada Peru Bolivia ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Tons Mined (000 dry short tons) Open-Pit 139,985 139,000 n/a n/a 203,720 155,707 18,676 18,444 Underground 1,538 1,123 1,621 1,607 n/a n/a n/a n/a Tons Processed (000 dry short tons) Oxide 5,164 5,395 1,628 1,605 n/a n/a n/a n/a Refractory 9,201 8,844 n/a n/a n/a n/a 7,675 7,582 Leach 15,027 24,448 n/a n/a 148,297 84,738 6,479 3,853 Average Ore Grade (oz/ton) Oxide 0.119 0.108 0.230 0.236 n/a n/a n/a n/a Refractory 0.224 0.218 n/a n/a n/a n/a 0.047 0.059 Leach 0.031 0.033 n/a n/a 0.023 0.030 0.018 0.021 Average Mill Recovery Rate (%) Oxide 74.4% 70.5% 95.0% 95.2% n/a n/a n/a n/a Refractory 88.6% 88.9% n/a n/a n/a n/a 60.7% 61.8% Ounces Produced (000) 2,718.1 2,696.9 364.5 348.7 2,285.6 1,902.5 284.1 305.6 Equity Ounces Produced (000) Oxide 474.8 433.2 364.5 348.7 n/a n/a n/a n/a Refractory 1,805.7 1,749.3 n/a n/a n/a n/a 195.9 247.4 Leach 437.6 514.4 n/a n/a 1,173.6 976.9 54.1 21.6 ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Total 2,718.1 2,696.9 364.5 348.7 1,173.6 976.9 250.0 269.0 Equity Ounces Sold (000) 2,723.5 2,703.2 379.2 373.1 1,176.9 983.1 249.4 274.8 ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Production Costs ($/oz) Direct mining and production costs $207 $207 $196 $187 $123 $113 $163 $163 Capitalized mining & other 11 11 1 1 (2) (1) (7) (5) ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Cash operating costs 218 218 197 188 121 112 156 158 Royalties and production taxes 7 4 1 4 4 3 - - ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Total Cash Costs 225 222 198 192 125 115 156 158 Reclamation and mine closure costs 2 4 6 6 3 3 7 5 ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Total Costs Applicable to Sales 227 226 204 198 128 118 163 163 Non-cash inventory adjustment 1 - - - - - - - Depreciation and amortization 44 43 71 67 57 48 48 62 Depreciation and amortization adjustment (1) - - - - - - - ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Total Production Costs $271 $269 $275 $265 $185 $166 $211 $225 ----------------------------------------- --------- ---------- -------- ------- --------- --------- ---------- ---------- Other (1) ----------------------------------------- -------- -------- Year ended December 31 2002 2001 ----------------------------------------- -------- -------- Tons Mined (000 dry short tons) Open-Pit 11,774 19,030 Underground n/a n/a Tons Processed (000 dry short tons) Oxide n/a n/a Refractory n/a n/a Leach 3,981 7,861 Average Ore Grade (oz/ton) Oxide n/a n/a Refractory n/a n/a Leach 0.026 0.028 Average Mill Recovery Rate (%) Oxide n/a n/a Refractory n/a n/a Ounces Produced (000) 121.3 147.3 Equity Ounces Produced (000) Oxide n/a n/a Refractory n/a n/a Leach 121.3 147.3 ----------------------------------------- -------- -------- Total 121.3 147.3 Equity Ounces Sold (000) 121.3 147.3 ----------------------------------------- -------- -------- Production Costs ($/oz) Direct mining and production costs $179 $188 Capitalized mining & other (7) (1) ----------------------------------------- -------- -------- Cash operating costs 172 187 Royalties and production taxes 4 6 ----------------------------------------- -------- -------- Total Cash Costs 176 193 Reclamation and mine closure costs 2 11 ----------------------------------------- -------- -------- Total Costs Applicable to Sales 178 204 Non-cash inventory adjustment - - Depreciation and amortization 77 72 Depreciation and amortization adjustme - - ----------------------------------------- -------- -------- Total Production Costs $255 $276 ----------------------------------------- -------- --------
Notes: 1. Other includes La Herradura (Mexico) and Mesquite (California). Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 13 of 25 4. Gold Production Summary - Australia Kalgoorlie Pajingo Tanami Yandal ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Tons Mined (000 dry short tons) 12,143 - 184 91 4797 - 955 - Tons Processed (000 dry short tons) 1,785 - 201 93 1,080 - 1,513 - Average Ore Grade (oz/ton) 0.062 - 0.439 0.353 0.137 - 0.127 - Average Mill Recovery Rate (%) 80.8% - 96.6% 96.7% 96.3% - 92.2% - Ounces Produced (000) 98.4 - 86.9 31.8 142.9 - 172.4 - Equity Ounces Produced (000) 98.4 - 86.9 31.8 122.8 - 172.4 - Equity Ounces Sold (000) 103.6 - 87.8 35.1 134.3 - 187.3 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Production Costs ($/oz) Direct mining and production costs $264 - $95 $88 $230 - $196 - Capitalized mining & other (67) - (3) - (39) - 1 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Cash operating costs 197 - 92 88 191 - 197 - Royalties and production taxes 7 - 12 8 24 - 8 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Cash Costs 204 - 104 96 215 - 205 - Reclamation and mine closure costs 5 - 4 5 6 - 4 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Costs Applicable to Sales 209 - 108 101 221 - 209 - Non-cash inventory adjustment 109 - 3 - (1) - (1) - Depreciation and amortization 24 - 42 36 18 - 96 - Depreciation and amortization adjustment 3 - (11) - 37 - (15) - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Production Costs $345 - $142 $137 $275 - $289 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Year ended December 31 ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Tons Mined (000 dry short tons) 40,477 - 656 368 21,630 - 9,196 - Tons Processed (000 dry short tons) 6,223 - 738 361 3,802 - 4,929 - Average Ore Grade (oz/ton) 0.060 - 0.397 0.351 0.142 - 0.133 - Average Mill Recovery Rate (%) 82.2% - 96.8% 96.9% 96.5% - 92.2% - Ounces Produced (000) 321.5 - 290.7 123.8 525.5 - 610.3 - Equity Ounces Produced (000) 321.5 - 290.7 123.8 451.4 - 610.3 - Equity Ounces Sold (000) 324.7 - 296.4 126.0 452.4 - 611.1 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Production Costs ($/oz) Direct mining and production costs $222 - $90 $97 $197 - $207 - Capitalized mining & other (14) - (4) 1 (11) - - - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Cash operating costs 208 - 86 98 186 - 207 - Royalties and production taxes 7 - 9 7 19 - 8 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Cash Costs 215 - 95 105 205 - 215 - Reclamation and mine closure costs 5 - 4 1 6 - 5 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Costs Applicable to Sales 220 - 99 106 211 - 220 - Non-cash inventory adjustment 42 - 3 - 2 - - - Depreciation and amortization 23 - 42 34 24 - 85 - Depreciation and amortization adjustment 4 - 27 - 36 - (13) - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------ Total Production Costs $289 - $171 $140 $273 - $292 - ---------------------------------------------- --------- ---------- --------- --------- ---------- --------- ---------- ------
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 14 of 25 5. Gold Production Summary - Other Zarafshan, Ovacik, Martha, Minahasa, Uzbekistan Turkey New Zealand Indonesia ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Three months ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Tons Mined (000 dry short tons) n/a n/a 1,134 - 1,918 - - 333 Tons Milled/Processed (000 dry short tons) Leach 1,955 1,838 - - - - - 205 Mill n/a n/a 120 - 333 - 192 167 Average Ore Grade (oz/ton) 0.054 0.047 0.340 - 0.095 - 0.199 0.152 Average Mill Recovery Rate (%) n/a n/a 93.9% - 89.6% - 91.1% 91.7% Ounces Produced (000) 58.2 54.7 37.7 - 28.5 - 37.8 59.0 Equity Ounces Produced (000) 58.2 54.7 37.7 - 28.5 - 35.5 56.7 Equity Ounces Sold (000) 61.8 59.4 41.1 - 33.5 - 33.1 66.1 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Production Costs ($/oz) Direct mining and production costs $129 $134 $119 - $203 - $253 $170 Capitalized mining & other 3 2 (21) - 5 - 2 3 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Cash operating costs 132 136 98 - 208 - 255 173 Royalties and production taxes - - 10 - - - 4 2 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Cash Costs 132 136 108 - 208 - 259 175 Reclamation and mine closure costs 1 1 5 - 9 - 50 8 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Costs Applicable to Sales 133 137 113 - 217 - 309 183 Non-cash inventory adjustment - - 23 - 47 - - - Depreciation and amortization 38 44 58 - 100 - 33 111 Depreciation and amortization adjustment - - 43 - 21 - - - ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Production Costs $171 $181 $237 - $385 - $342 $294 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Zarafshan, Ovacik, Martha, Minahasa, Uzbekistan Turkey New Zealand Indonesia ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Year ended December 31 2002 2001 2002 2001 2002 2001 2002 2001 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Tons Mined (000 dry short tons) n/a n/a 4,296 - 6,059 - - 5,586 Tons Milled/Processed (000 dry short tons) Leach 7,867 7,677 - - - - - - Mill n/a n/a 361 - 1,153 - 717 716 Average Ore Grade (oz/ton) 0.053 0.044 0.364 - 0.101 - 0.213 0.176 Average Mill Recovery Rate (%) n/a n/a 92.9% - 90.4% - 90.9% 91.4% Ounces Produced (000) 259.0 216.7 124.2 - 106.1 - 154.1 326.0 Equity Ounces Produced (000) 259.0 216.7 124.2 - 106.1 - 144.9 323.7 Equity Ounces Sold (000) 255.8 222.0 125.7 - 107.8 - 147.2 341.5 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Production Costs ($/oz) Direct mining and production costs $132 $133 $119 - $195 - $212 $125 Capitalized mining & other 2 3 (8) - (39) - 2 14 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Cash operating costs 134 136 111 - 156 - 214 139 Royalties and production taxes - - 11 - - - 4 3 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Cash Costs 134 136 122 - 156 - 218 142 Reclamation and mine closure costs (1) 1 5 - 7 - 16 3 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Costs Applicable to Sales 133 137 127 - 163 - 234 145 Non-cash inventory adjustment - - 12 - 19 - - - Depreciation and amortization 40 54 35 - 86 - 60 66 Depreciation and amortization adjustment - - 55 - 41 - - - ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- ------- Total Production Costs $173 $191 $229 - $309 - $294 $211 ------------------------------------------- -------- ------- -------- -------- ------- -------- -------- -------
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 15 of 25 6. Base Metals - Batu Hijau and Golden Grove Three Months Ended December 31 Year Ended December 31 ------------------------------------------------ -------------- ----------------- -------------- -------------- Batu Hijau 2002 2001 2002 2001 ------------------------------------------------ -------------- ----------------- -------------- -------------- Total tons mined (000) 55,223 50,640 240,484 183,991 Dry tons processed (000) 12,728 13,041 51,754 48,358 Average copper grade (%) 0.68% 0.61% 0.72% 0.75% Average copper recovery rate (%) 87.8% 84.8% 89.0% 89.2% Copper pounds produced (000) 152,289 137,297 657,664 656.954 Equity copper pounds produced (000) 85,663 77,230 369,936 369,537 Equity copper pounds sold (000) 90,826 77,464 362,253 359,955 Realized copper price ($/lb) $0.77 $0.66 $0.72 $0.70 Revenue $70,204 $51,357 $260,670 $251,601 ------------------------------------------------ -------------- ----------------- -------------- -------------- Cash production costs $53,057 $49,480 $200,619 $214,417 By-product credits (25,811) (16,965) (89,548) (81,709) ------------------------------------------------ -------------- ----------------- -------------- -------------- Net cash costs $27,246 $32,515 $111,071 $132,708 Noncash costs 17,586 20,779 66,650 61,385 ------------------------------------------------ -------------- ----------------- -------------- -------------- Total production costs $44,832 $53,294 $177,721 $194,093 ================================================ ============== ================= ============== ============== Pounds of copper sold (000) 90,826 77,464 362,253 359,955 Ounces of gold sold (000) 77.8 59.9 278.0 295.1 Net cash cost ($/lb) $0.30 $0.42 $0.31 $0.37 Noncash cost ($/lb) 0.19 0.27 0.18 0.17 ------------------------------------------------ -------------- ----------------- -------------- -------------- Total cash costs ($/lb) $0.49 $0.69 $0.49 $0.54 ================================================ ============== ================= ============== ==============
Three Months Ended December 31 Year Ended December 31 ------------------------------------------------ -------------- ----------------- -------------- -------------- Golden Grove 2002 2001 2002 2001 ------------------------------------------------ -------------- ----------------- -------------- -------------- Total tons mined 333,027 - 1,284,998 - Dry tons processed 355,860 - 1,273,222 - Average copper grade (%) 4.6% - 4.7% - Average copper recovery rate (%) 94.2% - 90.7% - Copper produced pounds (000) 18,046 - 60,973 - Copper sold pounds (000) 7,993 - 45,662 - Realized copper price ($/lb) $0.59 - $0.79 - Copper cash cost per pound ($/lb) $0.59 - $0.56 - Average zinc grade (%) 13.9% - 13.9% - Average zinc recovery rate (%) 95.5% - 87.7% - Zinc produced pounds (000) 38.744 - 114,806 - Zinc sold pounds (000) 35,148 - 147,985 - Realized zinc price ($/lb) $0.29 - $0.27 - Zinc cash cost per pound ($/lb) $0.20 - $0.18 - Ounces of gold sold (000) 3.3 - 13.6 - Ounces of silver sold (000) 223.4 - 1,122.9 -
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 16 of 25 7. Reconciliation of Costs Applicable to Sales to Total Cash Costs Per Ounce and Per Pound, and Total Production Costs Per Ounce and Per Pound The total cash costs per ounce or pound is a non-GAAP performance measure that is intended to provide investors with information about the cash generating capacities of Newmont's mining operations. Newmont's management uses this measure 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. For the Year Ended Total December 31, 2002 Nevada Mesquite La Herradura Golden Giant Holloway North America ----------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- Costs applicable to sales under GAAP..... $620.1 $10.1 $11.5 $56.8 $20.4 $718.9 Minority interest ....................... -- -- -- -- -- -- Reclamation and other .................. (6.9) -- (0.2) (1.7) (0.5) (9.3) Non-cash inventory adjustment .......... (1.5) -- -- -- -- (1.5) Other .................................. (0.1) -- -- -- -- (0.1) ------------- ------------- ------------- ------------- ------------- ------------- Total cash cost for per ounce calculation .......................... 611.6 10.1 11.3 55.1 19.9 708.0 Reclamation and other .................. 8.4 -- 0.2 1.6 0.5 10.7 Depreciation, depletion and amortization 118.2 6.3 3.1 20.5 6.7 154.8 Minority interest and other ............ -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total production cost for per ounce calculation .......................... $738.2 $16.4 $14.6 $77.2 $27.1 $873.5 Equity ounces sold (000) ............... 2,723.5 57.1 64.2 281.5 97.7 3,224.0 Equity cash cost per ounce sold ........ $225 $177 $176 $196 $204 $220 Equity production cost per ounce sold .. $271 $287 $227 $274 $277 $271
For the Year Ended Total South December 31, 2002 Yanacocha Kori Kollo America Pajingo Kalgoorlie Yandal ----------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- Costs applicable to sales under GAAP..... $302.0 $46.1 $348.1 $30.5 $85.0 $134.8 Minority interest ..................... (152.3) (5.6) (157.9) -- -- -- Reclamation and other .................. (3.0) (1.6) (4.6) (1.2) (1.7) (3.2) Non-cash inventory adjustment .......... -- -- -- (1.0) (13.6) (0.1) Other .................................. 0.7 -- 0.7 -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total cash cost for per ounce calculation .......................... 147.4 38.9 186.3 28.3 69.7 131.5 Reclamation and other .................. 3.0 1.6 4.6 1.8 15.3 3.1 Depreciation, depletion and amortization 121.5 13.8 135.3 20.6 9.0 43.5 Minority interest and other ............ (54.6) (1.7) (56.3) -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total production cost for per ounce calculation .......................... $217.3 $52.6 $269.9 $50.7 $94.0 $178.1 Equity ounces sold (000) ............... 1,176.9 249.4 1,426.3 296.4 324.7 611.1 Equity cash cost per ounce sold ........ $125 $156 $131 $95 $215 $215 Equity production cost per ounce sold .. $185 $211 $189 $171 $289 $292
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 17 of 25 For the Year Ended Total Zarafshan, December 31, 2002 NFM Tanami Australia Uzbekistan Minahasa Martha Ovacik ----------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- Costs applicable to sales under GAAP..... $112.3 $362.6 $34.0 $36.6 $19.6 $17.5 Minority interest ..................... (15.8) (15.8) -- -- -- -- Reclamation and other .................. (2.6) (8.7) 0.3 (2.4) (0.7) (0.7) Non-cash inventory adjustment .......... (0.9) (15.6) -- -- (2.1) (1.5) Other .................................. -- -- -- (2.1) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total cash cost for per ounce calculation .......................... 93.0 322.5 34.3 32.1 16.8 15.3 Reclamation and other .................. 2.7 22.9 (0.3) 2.4 2.6 2.0 Depreciation, depletion and amortization 32.5 105.6 10.3 9.5 13.9 11.5 Minority interest and other ............ (4.5) (4.5) -- (0.6) -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total production cost for per ounce calculation .......................... $123.7 $446.5 $44.3 $43.4 $33.3 $28.8 Equity ounces sold (000) ............... 452.4 1,684.6 255.8 147.2 107.8 125.7 Equity cash cost per ounce sold ........ $205 $191 $134 $218 $156 $122 Equity production cost per ounce sold .. $273 $265 $173 $294 $309 $229
For the Year Ended Total Other Other December 31, 2002 International Total Gold Golden Grove Kasese Non-Gold Consolidated ----------------------------------------- ------------- ------------- ------------- ------------- --------- ------------- Costs applicable to sales under GAAP..... $107.7 $1,537.3 $27.3 $7.8 $(0.4) $1,572.0 Minority interest ..................... -- (173.7) -- -- -- (173.7) Reclamation and other .................. (3.5) (26.1) -- -- -- (26.1) Non-cash inventory adjustment .......... (3.6) (20.7) -- -- -- (20.7) Other .................................. (2.1) (1.5) (27.3) (7.8) 0.4 (36.2) ------------- ------------- ------------- ------------- ---------- ------------ Total cash cost for per ounce calculation .......................... 98.5 1,315.3 -- -- -- 1,315.3 Reclamation and other .................. 6.7 44.9 (1.7) -- 3.7 46.9 Depreciation, depletion and amortization 45.2 440.9 22.9 -- 41.8 505.6 Minority interest and other ............ (0.6) (61.4) (21.2) -- (45.4) (128.0) ------------- ------------- ------------- ------------- ---------- ------------- Total production cost for per ounce calculation .......................... $149.8 $1,739.7 $-- $-- $-- $1,739.7 Equity ounces sold (000) ............... 636.5 6,971.4 n/a n/a n/a 6,971.4 Equity cash cost per ounce sold ........ $155 $189 n/a n/a n/a $189 Equity production cost per ounce sold .. $235 $250 n/a n/a n/a $250
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 18 of 25 For the Year Ended Total December 31, 2001 Nevada Mesquite La Herradura Golden Giant Holloway North America ----------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- Costs applicable to sales under GAAP..... $610.9 $20.4 $9.6 $54.8 $19.1 $714.8 Minority interest ...................... -- -- -- -- -- -- Reclamation ............................ (10.3) (1.5) (0.2) (1.7) (0.4) (14.1) Other .................................. -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total cash cost for per ounce calculation .......................... 600.6 18.9 9.4 53.1 18.7 700.7 Reclamation ............................ 10.3 1.5 0.2 1.7 0.4 14.1 Depreciation, depletion and amortization 117.4 7.5 3.1 18.2 6.6 152.8 Minority interest and other ............ -- -- -- -- -- -- Total production cost for per ounce calculation .......................... $728.3 $27.9 $12.7 $73.0 $25.7 $867.6 Equity ounces sold (000) ............... 2,703.2 92.6 54.7 283.7 89.4 3,223.6 Equity cash cost per ounce sold ........ $222 $205 $173 $187 $209 $217 Equity production cost per ounce sold .. $269 $301 $233 $257 $288 $269
For the Year Ended Total South Zarafshan December 31, 2001 Yanacocha Kori Kollo America Pajingo Uzbekistan Minahasa ----------------------------------------- ------------- ------------- ------------- ------------- ------------- ------------- Costs applicable to sales under GAAP..... $233.9 $50.8 $284.7 $13.4 $30.4 $49.7 Minority interest ...................... (117.6) (6.1) (123.7) -- -- -- Reclamation ............................ (2.9) (1.4) (4.3) (0.2) (0.2) (1.0) Other .................................. -- -- -- -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total cash cost for per ounce calculation .......................... 113.4 43.3 156.7 13.2 30.2 48.7 Reclamation ............................ 2.9 1.4 4.3 0.2 0.2 1.0 Depreciation, depletion and amortization 82.3 19.4 101.7 4.3 12.0 22.9 Minority interest and other ............ (35.7) (2.3) (38.0) -- -- -- ------------- ------------- ------------- ------------- ------------- ------------- Total production cost for per ounce calculation .......................... $162.9 $61.8 $224.7 $17.7 $42.4 $72.6 Equity ounces sold (000) ............... 983.1 274.8 1,257.9 126.0 222.0 341.5 Equity cash cost per ounce sold ........ $115 $158 $125 $105 $136 $142 Equity production cost per ounce sold .. $166 $225 $179 $140 $191 $211
For the Year Ended Corporate December 31, 2001 and Other Consolidated ----------------------------------------- ------------- ------------- Costs applicable to sales under GAAP ... $(0.2) $1,092.8 Minority interest ...................... -- (123.7) Reclamation ............................ -- (19.8) Other .................................. 0.2 0.2 ------------- ------------- Total cash cost for per ounce calculation .......................... $-- $949.5 Reclamation ............................ -- 19.8 Depreciation, depletion and amortization 7.9 301.6 Minority interest and other ............ (7.9) (45.9) ------------- ------------- Total production cost for per ounce calculation .......................... $-- $1,225.0 Equity ounces sold (000) ............... n/a 5,171.0 Equity cash cost per ounce sold ........ n/a $184 Equity production cost per ounce sold .. n/a $237
Q4 AND 2002 RESULTS (MARCH 28, 2003) Page 19 of 25
Total For the Three Months Ended Golden North December 31, 2002 Nevada Mesquite La Herradura Giant Holloway America Costs applicable to sales under GAAP..... $161.5 $2.1 $2.8 $16.0 $6.4 $188.8 Minority interest ....................... -- -- -- -- -- -- Reclamation and other .................. (2.3) -- -- (0.5) (0.2) (3.0) Non-cash inventory adjustment .......... -- -- -- -- -- -- Other .................................. -- -- -- -- -- -- Total cash cost for per ounce calculation .......................... 159.2 2.1 2.8 15.5 6.2 185.8 Reclamation and other .................. 2.3 -- -- 0.5 0.2 3.0 Depreciation, depletion and amortization 33.4 1.5 0.7 6.2 2.5 44.3 Minority interest and other ............ -- -- -- -- -- -- Total production cost for per ounce calculation .......................... $194.9 $3.6 $3.5 $22.2 $8.9 $233.1 Equity ounces sold (000) ............... 796.4 12.8 15.7 80.3 26.7 931.9 Equity cash cost per ounce sold ........ $200 $167 $172 $194 $233 $199 Equity production cost per ounce sold .. $245 $286 $222 $277 $331 $250
Total For the Three Months Ended South December 31, 2002 Yanacocha Kori Kollo America Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP ... $83.9 $11.7 $95.6 $9.7 $32.9 $39.0 Minority interest ..................... (42.4) (1.4) (43.8) -- -- -- Reclamation and other .................. (1.1) (0.7) (1.8) (0.4) (0.4) (0.9) Non-cash inventory adjustment .......... -- -- -- (0.2) (11.4) 0.1 Other .................................. (0.9) -- (0.9) -- -- -- Total cash cost for per ounce calculation .......................... 39.5 9.6 49.1 9.1 21.1 38.2 Reclamation and other .................. 1.1 0.7 1.8 0.5 11.8 0.8 Depreciation, depletion and amortization 35.7 3.4 39.1 2.8 2.9 15.1 Minority interest and other ............ (16.1) (0.4) (16.5) -- -- -- Total production cost for per ounce calculation .......................... $60.2 $13.3 $73.5 $12.4 $35.8 $54.1 Equity ounces sold (000) ............... 353.8 57.5 411.3 87.8 103.7 187.3 Equity cash cost per ounce sold ........ $112 $165 $119 $104 $204 $205 Equity production cost per ounce sold .. $170 $231 $179 $142 $345 $289
For the Three Months Ended NFM Total Zarafshan, December 31, 2002 Tanami Australia Uzbekistan Minahasa Martha Ovacik Costs applicable to sales under GAAP..... $34.3 $115.9 $8.2 $10.9 $8.8 $5.6 Minority interest ..................... (4.9) (4.9) -- -- -- -- Reclamation and other .................. (0.9) (2.6) (0.1) (1.6) (0.3) (0.2) Non-cash inventory adjustment .......... 0.3 (11.2) -- -- (1.6) (0.9) Other .................................. -- -- -- (0.6) -- -- Total cash cost for per ounce calculation .......................... 28.8 97.2 8.1 8.7 6.9 4.5 Reclamation and other .................. 0.4 13.5 0.1 1.6 1.8 1.0 Depreciation, depletion and amortization 8.8 29.6 2.3 1.2 4.2 4.2 Minority interest and other ............ (1.2) (1.2) -- (0.1) -- -- Total production cost for per ounce calculation .......................... $36.8 $139.1 $10.5 $11.4 $12.9 $9.7 Equity ounces sold (000) ............... 133.9 512.7 61.8 33.1 33.5 41.1 Equity cash cost per ounce sold ........ $215 $190 $132 $259 $208 $108 Equity production cost per ounce sold .. $275 $272 $171 $342 $385 $237
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 20 of 25
Total For the Three Months Ended Other Golden Other December 31, 2002 Intenational Total Gold Grove Kasese Non-Gold Consolidated Costs applicable to sales under GAAP..... $33.5 $433.8 $5.8 $-- $(2.1) $437.5 Minority interest ..................... -- (48.7) -- -- -- (48.7) Reclamation and other .................. (2.2) (9.6) -- -- -- (9.6) Non-cash inventory adjustment .......... (2.5) (13.7) -- -- -- (13.7) Other .................................. (0.6) (1.5) (5.8) -- 2.1 (5.2) Total cash cost for per ounce calculation .......................... 28.2 360.3 -- -- -- 360.3 Reclamation and other .................. 4.5 22.8 (0.5) -- (2.6) 19.7 Depreciation, depletion and amortization 11.9 124.9 10.3 -- 11.0 146.2 Minority interest and other ............ (0.1) (17.8) (9.8) -- (8.4) (36.0) Total production cost for per ounce calculation .......................... $44.5 $490.2 $-- $-- $-- $490.2 Equity ounces sold (000) ............... 169.5 2,025.4 n/a n/a n/a 2,025.4 Equity cash cost per ounce sold ........ $166 $178 n/a n/a n/a $178 Equity production cost per ounce sold .. $262 $242 n/a n/a n/a $242
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 21 of 25
Total For the Three Months Ended Golden North December 31, 2001 Nevada Mesquite La Herradura Giant Holloway America Costs applicable to sales under GAAP ... $159.9 $2.3 $2.6 $16.4 $4.4 $185.6 Minority interest ...................... -- -- -- -- -- -- Reclamation ............................ (3.2) -- -- (0.5) (0.1) (3.8) Other .................................. -- -- -- -- -- -- Total cash cost for per ounce calculation .......................... 156.7 2.3 2.6 15.9 4.3 181.8 Reclamation ............................ 3.2 -- -- 0.5 0.1 3.8 Depreciation, depletion and amortization 29.6 1.5 0.8 5.5 1.6 39.0 Minority interest and other ............ -- -- -- -- -- -- Total production cost for per ounce calculation .......................... $189.5 $3.8 $3.4 $21.9 $6.0 $224.6 Equity ounces sold (000) ............... 716.6 12.4 13.8 87.5 25.0 855.3 Equity cash cost per ounce sold ........ $219` $185 $185 $182 $170 $213 Equity production cost per ounce sold .. $264 $302 $248 $251 $241 $263
Total For the Three Months Ended South Zarafshan, December 31, 2001 Yanacocha Kori Kollo America Pajingo Uzbekistan Minahasa Costs applicable to sales under GAAP ... $62.3 $12.0 $74.3 $3.5 $8.1 $12.4 Minority interest ...................... (30.9) (1.4) (32.3) -- -- -- Reclamation ............................ (0.8) (0.4) (1.2) (0.1) -- (0.5) Other .................................. -- -- -- -- -- -- Total cash cost for per ounce calculation .......................... 30.6 10.2 40.8 3.4 8.1 11.9 Reclamation ............................ 0.8 0.4 1.2 0.1 -- 0.5 Depreciation, depletion and amortization 21.3 4.8 26.1 1.3 2.7 7.6 Minority interest and other ............ (9.6) (0.6) (10.2) -- -- -- Total production cost for per ounce calculation .......................... $43.1 $14.8 $57.9 $4.8 $10.8 $20.0 Equity ounces sold (000) ............... 263.6 73.7 337.3 35.1 59.4 66.1 Equity cash cost per ounce sold ........ $116 $139 $121 $96 $136 $175 Equity production cost per ounce sold .. $164 $201 $172 $137 $181 $294
For the Three Months Ended Corporate December 31, 2001 and Other Consolidated Costs applicable to sales under GAAP ... $-- $283.9 Minority interest ...................... -- (32.3) Reclamation ............................ -- (5.6) Other .................................. -- -- Total cash cost for per ounce calculation .......................... $-- $246.0 Reclamation ............................ -- 5.6 Depreciation, depletion and amortization 2.9 79.6 Minority interest and other ............ (2.9) (13.1) Total production cost for per ounce calculation .......................... $-- $318.1 Equity ounces sold (000) ............... n/a 1,353.2 Equity cash cost per ounce sold ........ n/a $182 Equity production cost per ounce sold .. n/a $235
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 22 of 25 7. Reconciliation of Batu Hijau Costs applicable to sales to net cash costs per pound
For the year ended December 31 2002 2001 Costs applicable to sales per financial statements $107,355 $145,559 Refining 103,727 101,892 Minority interest (96,923) (112,970) Reclamation (5,536) (1,773) Other 2,448 -- ---------------------------- Net cash cost for per pound calculation $111,071 $132,708 ============================ Equity pounds sold (000) 362,253 359,955 Equity cash cost per pound sold $0.31 $0.37
For the three months ended December 31 2002 2001 Costs applicable to sales per financial statements $28,642 $35,693 Refining 26,230 24,787 Minority interest (25,160) (27,471) Reclamation (2,658) (494) Other 192 -- ---------------------------- Net cash cost for per pound calculation $27,246 $32,515 ============================ Equity pounds sold (000) 90,826 77,464 Equity net cash cost per pound sold $0.30 $0.42
Reconciliation of Golden Grove Costs applicable to sales to total copper and zinc cash costs per pound
For the year ended December 31, 2002 Total Copper Zinc Costs applicable to sales per financial statements $27,255 $18,114 $9,141 Refining 24,744 7,512 17,232 -------------------------------------- Total cash cost for per pound calculation $51,999 $25,626 $26,373 ====================================== Total pounds sold (000) n/a 45,662 147,985 Equity cash cost per pound sold n/a $0.56 $0.18 For the three months ended December 31, 2002 Total Copper Zinc Costs applicable to sales per financial statements $5,838 $3,741 $2,097 Refining 5,867 982 4,885 -------------------------------------- Total cash cost for per pound calculation $11,705 $4,723 $6,982 ====================================== Total pounds sold (000) n/a 7,993 35,148 Equity cash cost per pound sold n/a $0.59 $0.20
Q4 and 2002 Results (March 28, 2003) Supplemental Information Page 23 of 25 Investor Information Corporate Address Newmont Mining Corporation 1700 Lincoln Street Denver, CO. 80203 Telephone: .......(303) 863-7414 Facsimile: .......(303) 837-5837 Web Site www.newmont.com Stock Exchange Listings - Ticker New York Stock Exchange NEM Toronto Stock Exchange NMC Australian Stock Exchange NEM NYSE Share Price Performance (Q4) -------------- ------------ ------------ ------------ ------------ Oct 02 Nov 02 Dec 02 Q4 02 -------------- ------------ ------------ ------------ ------------ High $26.88 $26.08 $29.98 $29.98 -------------- ------------ ------------ ------------ ------------ Low $23.10 $23.10 $23.20 $23.10 -------------- ------------ ------------ ------------ ------------ Last $24.72 $23.41 $29.03 $29.03 -------------- ------------ ------------ ------------ ------------ Shareholder Information Please contact the respective stock transfer agent acting as transfer agent, registrar and dividend disbursing agent for the securities listed below. Information regarding shareholder accounts, dividend payments, stock transfer and related matters for the respective securities should be directed to the transfer agent listed. For holders of Newmont Stock (NYSE:NEM) Mellon Investor Services, LLC 85 Challenger Road Ridgefield Park, NJ. 07660 Toll free:........(888) 216-8104 (between 8:00 a.m. and 8:00 p.m. Eastern Time) Internet:......... www.melloninvestor.com ---------------------- For Holders of Newmont Exchangeable Shares (TSX: NMC) Computershare Trust Company of Canada 100 University Avenue, 9th Floor Toronto, Ontario M5J 2Y1 Canada Toll-Free:........(800) 663-9097 Telephone:........(416) 981-9633 Internet: .......caregistryinfo@computershare.com For Holders of Newmont CHESS Depository Interests (CDIs trading on ASX: NEM) National Shareholder Services Pty Limited 100 Hutt Street, Adelaide 5000 South Australia, Australia Shareholder enquires: Telephone: .......61-8-8232-0003 Facsimile:........61-8-8232-0072 Page 24 of 25 The company's fourth quarter and 2002 earnings conference call and web cast presentation is scheduled for Friday, March 28, 2003 beginning at 11:00 a.m. Eastern Standard Time (9:00 a.m. Mountain Standard Time). To participate Dial-In Number: (773) 756-4806 Leader: Russell Ball assword: Newmont The conference call will also be simultaneously carried on our web site under Investor Information/Presentations and will be archived there for a limited time. Cautionary Statement This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii) estimates of future cash costs; (iv) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (v) statements regarding future debt repayments; (vi) estimates of future capital expenditures; (vii) estimates of reserves, and statements regarding future exploration results and the replacement of reserves; and (viii) statements regarding modifications to the company's hedge position. Where the company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the countries in which we operate and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the company's 2002 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 any revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.