-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Lm794sk8vl4hFPm378ErAwTsHvnzrgLm/7QdEo84nJO3sfiolSxPu8iP1GtjEn+m jd8Zhrq3BM+yPFchULYSTg== 0001144204-11-010573.txt : 20110224 0001144204-11-010573.hdr.sgml : 20110224 20110224061034 ACCESSION NUMBER: 0001144204-11-010573 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 6 CONFORMED PERIOD OF REPORT: 20110224 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20110224 DATE AS OF CHANGE: 20110224 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NEWMONT MINING CORP /DE/ CENTRAL INDEX KEY: 0001164727 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 841611629 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31240 FILM NUMBER: 11634047 BUSINESS ADDRESS: STREET 1: 6363 SOUTH FIDDLERS GREEN CIRCLE CITY: GREENWOOD VILLAGE STATE: CO ZIP: 80111 BUSINESS PHONE: 303-863-7414 MAIL ADDRESS: STREET 1: 6363 SOUTH FIDDLERS GREEN CIRCLE CITY: GREENWOOD VILLAGE STATE: CO ZIP: 80111 FORMER COMPANY: FORMER CONFORMED NAME: DELTA HOLDCO CORP DATE OF NAME CHANGE: 20020109 8-K 1 v212431_8k.htm
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

February 24, 2011

Newmont Mining Corporation
(Exact name of registrant as specified in its charter)

Delaware

(State or Other Jurisdiction of Incorporation)
 
001-31240

(Commission File Number)

84-1611629

(I.R.S. Employer Identification No.

6363 South Fiddlers Green Circle, Greenwood Village, CO  80111
(Address of principal executive offices) (zip code)

(303) 863-7414

(Registrant's telephone number, including area code)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)

 
 

 
 
ITEM 2.02.  RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
 
On February 24, 2011, Newmont Mining Corporation, a Delaware corporation (the “Company”), issued a news release reporting its financial results for the quarter ended and year ended December 31, 2010.  A copy of the news release is furnished as Exhibit 99.1 to this report.
 
Additionally, on February 24, 2011, the Company issued a news release reporting 2010 reserve estimates, 2010 exploration highlights and 2011 planned exploration activity.  A copy of the news release is furnished as Exhibit 99.2 to this report.
 
ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS.
 
(d) Exhibits
 
Exhibit Number
 
Description of Exhibit
     
99.1
 
News Release, dated February 24, 2011, reporting financial results for the quarter ended and year ended December 31, 2010
     
99.2
  
News Release, dated February 24, 2011, reporting 2010 reserves, 2010 exploration highlights and 2011 planned exploration activity
 
 
2

 

SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

By: 
/s/ Jeffrey K. Reeser
Name:  Jeffrey K. Reeser
Title: Vice President and Secretary
 
Dated:  February 24, 2011

 
3

 
 
EXHIBIT INDEX
 
Exhibit Number
 
Description of Exhibit
     
99.1
 
News Release, dated February 24, 2011, reporting financial results for the quarter ended and year ended December 31, 2010
     
99.2
  
News Release, dated February 24, 2011, reporting 2010 reserves, 2010 exploration highlights and 2011 planned exploration activity
 
 
4

 
EX-99.1 2 v212431_ex99-1.htm

Newmont Reports 76% Increase in Net Income to a Record $2.3 Billion and Record $3.2 Billion of Operating Cash Flow in 2010



This release should be read in conjunction with Newmont's 2010 Form 10-K filed with the Securities and Exchange Commission on February 24, 2011 (available at www.newmont.com).

DENVER, Feb. 24, 2011 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today announced that net income increased 76% to $2.3 billion ($4.63 per share) in 2010, compared to $1.3 billion ($2.66 per share) in the prior year.  Operating cash flow was a record $3.2 billion for 2010, compared to $2.9 billion in 2009.  Adjusted net income(1) rose 39% to a record $1.9 billion ($3.85 per share) from $1.4 billion ($2.79 per share) in 2009, while the Company's gold operating margin(2) increased by 30% to $737 per ounce in 2010, from $566 per ounce in 2009.

2010 Highlights:

  • Attributable gold and copper production of 5.4 million ounces and 327 million pounds, respectively, with gold production slightly higher and copper production approximately 44% higher than in 2009;
  • Record revenue of $9.5 billion, an increase of 24% from 2009;
  • Average realized gold and copper price of $1,222 per ounce and $3.43 per pound, respectively;
  • Gold operating margin increase(3) of 30%, compared with an average realized gold price increase of 25%;
  • Consolidated costs applicable to sales for gold and copper of $485 per ounce and $0.80 per pound, respectively; and
  • Cash and cash equivalents of more than $4 billion on December 31, 2010.

Q4 2010 Highlights:

  • Attributable gold and copper production of 1.4 million ounces and 74 million pounds, respectively;
  • Average realized gold and copper price of $1,366 per ounce and $4.52 per pound, respectively; and
  • Costs applicable to sales for gold and copper of $512 per ounce and $0.95 per pound, respectively.

"I am pleased to report that we generated record operating cash flow for the second year in a row, with our gold operating margin growing by 30% to $737 per ounce on an average realized gold price of $1,222 in 2010," stated Richard O'Brien, President and CEO.  "As a whole, our operations performed according to our plans, producing 5.4 million attributable ounces of gold in 2010. We continue to advance our Conga Project in Peru, which contains over 6 million attributable ounces of gold and 1.6 billion attributable pounds of copper reserves. Similarly, we continued to advance with our Akyem Project in Ghana, which contains over 7 million attributable ounces of gold reserves. Advancing these two world-class mining projects, as well as continuing our drilling programs at Hope Bay in Canada, remain some of our top priorities in 2011."

Portfolio Wide Operating Results and Outlook

In 2010, the Company reported attributable gold and copper production of 5.4 million ounces and 327 million pounds, respectively, at costs applicable to sales of $485 per ounce, and $0.80 per pound, respectively, on a co-product basis.  Attributable 2010 gold production increased over 2009 levels due to the first full year of production at Boddington and a full year of mining higher grade ore from the bottom of the pit at Batu Hijau.  Costs applicable to sales per gold ounce sold increased 18% over the prior year due to lower production from South America, a full year of higher cost production at Boddington and higher diesel, royalty and waste mining costs, partially offset by higher by-product credits. Costs applicable to sales per copper pound sold increased 25% over the prior year due to higher waste mining at Batu Hijau and a full year of higher cost production at Boddington, partially offset by higher production from Batu Hijau.

2011 attributable gold production is expected to be approximately 5.1 million to 5.3 million ounces, with attributable copper production of 190 to 220 million pounds.  The volume outlook reflects lower expected production at Batu Hijau as it moves into Phase 6 stripping, partially offset by higher production expected at Nevada and Ahafo.  Costs applicable to sales are expected to be between $560 and $590 per ounce due to lower expected production at Batu Hijau, combined with higher expected costs for energy, labor, and contracted services.  Costs applicable to sales are expected to be between $1.25 and $1.50 per pound of copper due to lower production at Batu Hijau.

Regional Operations

North America

Nevada  Attributable gold production was 429,000 ounces in the fourth quarter and 1.7 million ounces in 2010.  Costs applicable to sales were $520 and $565 per ounce for the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower leach placement at Twin Creeks and Carlin, lower Gold Quarry ore mined as a result of the slope failure in late 2009 and lower mill ore grade due to the completion of mining at Deep Post in December 2009.  Costs applicable to sales per ounce increased from the prior year quarter due to lower production, partially offset by higher by-product credits.  

2010 attributable gold ounces decreased 13% due to the completion of underground mining at Deep Post in 2009, lower Gold Quarry ore mined as a result of a slope failure which occurred in December 2009 and lower leach tons placed at Twin Creeks and Carlin, partially offset by increased underground mining at Leeville. Total ore tons mined were 26% lower, primarily due to the Gold Quarry slope failure and the completion of mining at North Lantern in April 2010. Ore placed on leach pads decreased 62% to 4.5 million tons. Costs applicable to sales per ounce increased 11% due to lower production, partially offset by higher by-product credits.

La Herradura  Attributable gold production was 49,000 ounces in the fourth quarter and 174,000 ounces in 2010.  Costs applicable to sales were $434 and $420 per ounce in the fourth quarter and 2010, respectively.  

Fourth quarter production increased from the prior year quarter due to higher leach placement.  Costs applicable to sales per ounce increased from the prior year quarter due to higher waste mining costs.  

2010 attributable gold ounces produced increased 54% in 2010 from the prior year due to the commencement of commercial production at the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce increased 13% due to higher waste tons mined.

2011 attributable gold production in North America is expected to be approximately 2.0 to 2.1 million ounces at costs applicable to sales of approximately $560 to $600 per ounce. Production from Nevada has been impacted by the December 2009 slope failure at Gold Quarry, limiting access to ore originally scheduled to be mined in 2010 and 2011. During 2010, the Company mined through the impacted area and expects to reestablish access to ore in the first half of 2011.

South America

Yanacocha  Attributable gold production was 170,000 ounces in the fourth quarter and 750,000 ounces in 2010.  Costs applicable to sales were $559 and $431 per gold ounce in the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower leach placement, transitional ore stockpiling at La Quinua and lower mill grade.  Costs applicable to sales per ounce increased from the prior year quarter due to higher waste material mined and higher royalties and lower by-product credits.  

2010 attributable gold production decreased 29% from the prior year due to mine sequencing resulting in increased waste mining, lower leach placement, transitional ore stockpiling at La Quinua and lower grade and recovery resulting in lower mill production. Leach tons placed decreased from 136 million tons in 2009, which was a record amount, to 59 million tons in 2010. Costs applicable to sales per ounce increased 39% from the prior year due to higher waste material mined, lower production, higher labor, diesel and maintenance costs, and higher workers' participation and royalty costs as a result of higher gold prices, partially offset by higher by-product credits.

La Zanja  Attributable gold production was 16,000 ounces in the fourth quarter and 21,000 ounces in 2010.  La Zanja achieved commercial production in the third quarter 2010.  

2011 attributable gold production in South America is expected to be approximately 715,000-775,000 ounces, primarily due to lower leach production at Yanacocha. Costs applicable to sales are expected to increase in 2011 to approximately $500 to $550 per ounce, primarily due to lower gold production and higher contracted services and supplies.

Asia Pacific

Boddington  Attributable gold production was 206,000 ounces in the fourth quarter and 728,000 ounces in 2010.  Attributable copper production was 15 million pounds in the fourth quarter and 58 million pounds in 2010.  Costs applicable to sales were $624 ($512 on a by-product basis(4)) and $590 ($487 on a by-product basis(4)) per gold ounce and $2.06 and $1.86 per pound of copper, in the fourth quarter and 2010, respectively.  

Fourth quarter 2010 production increased from the prior year quarter due to the commencement of commercial production in November 2009.  

2010 production at Boddington was in line with revised guidance.  Costs applicable to sales were higher than expected due to lower production and higher mining and mill maintenance costs.

2011 attributable gold production at Boddington is expected to be approximately 750,000-800,000 ounces at costs applicable to sales of approximately $580 to $620 per ounce on a co-product basis. Lower than expected gold production at Boddington is primarily attributable to lower gold ore grade and lower expected mill throughput, while higher operating costs are expected to result from lower than expected production volumes, higher mining costs, as well as higher contracted services and supplies. We continue to review our ore grade and processing models to identify opportunities to optimize and improve our future production and operating costs at Boddington.

Batu Hijau  Attributable gold production was 88,000 ounces in the fourth quarter and 364,000 ounces in 2010. Attributable copper production was 59 million pounds in the fourth quarter and 269 million pounds in 2010.  Costs applicable to sales were $243 and $237 per gold ounce and $0.81 and $0.69 per pound of copper on a co-product basis in the fourth quarter and 2010, respectively.

Fourth quarter copper production decreased from the prior year quarter due to lower mill throughput.  Gold production increased from the prior year quarter due to unseasonably dry weather and continued mining in the bottom of Phase 5, resulting in higher gold grades which offset the lower mill throughput.  Costs applicable to sales per ounce and per pound increased from the prior year quarter due to higher waste mining and milling costs, including higher labor costs.  

2010 attributable copper and gold production increased 10% and 32%, respectively, in 2010 over the prior year due to higher grade and mill throughput as a result of mining at the bottom of Phase 5 and processing softer ore, partially offset by lower recovery. Unseasonably dry weather permitted additional mining in the bottom of Phase 5 during the fourth quarter. Beginning in 2011, we expect to process stockpiled ore until Phase 6 ore becomes the primary mill feed commencing in late 2013. Costs applicable to sales increased 11% per pound and per ounce due to higher waste mining, labor and diesel costs.

2011 attributable gold production for Batu Hijau is expected to be approximately 110,000-140,000 ounces, at costs applicable to sales of between $400 and $440 per ounce, while attributable copper production is expected to be approximately 120 to 140 million pounds, at costs applicable to sales of between $1.10 and $1.30 per pound.  The decrease from 2010 production levels is primarily due to the processing of stockpiles as Phase 6 stripping continues.  

Other Australia/New Zealand  Attributable gold production was 259,000 ounces in the fourth quarter and 1.1 million ounces in 2010. Costs applicable to sales were $554 and $546 per ounce in the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower mill grade at Jundee and Kalgoorlie, partially offset by higher throughput at Tanami.  Costs applicable to sales per ounce increased from the prior year quarter due to lower production and a stronger Australian dollar.  

2010 attributable gold production decreased 7% due to lower mill grade at Jundee and Waihi and lower mill grade and throughput at Tanami, partially offset by higher grade, throughput and recovery at Kalgoorlie. Costs applicable to sales per ounce increased 9% due to lower production and a stronger Australian dollar.

2011 attributable production for the Asia Pacific region is expected to be approximately 1.9 to 2.0 million ounces, primarily as a result of lower production at Batu Hijau. Costs applicable to sales are expected to increase to approximately $600 to $675 per ounce in 2011, primarily driven by lower Batu Hijau production. We expect attributable copper production for the Asia Pacific region of approximately 190 to 220 million pounds at costs applicable to sales of approximately $1.25 to $1.50 per pound in 2011.

Africa

Attributable gold production was 137,000 and 545,000 ounces, respectively, during the fourth quarter and 2010.  Costs applicable to sales were $433 and $450 per ounce for the fourth quarter and 2010, respectively,.

Fourth quarter production increased from the prior year quarter due to higher mill grade.   Costs applicable to sales per ounce decreased from the prior year quarter due to higher production, partially offset by higher labor, power and royalty costs.

2010 attributable gold production increased due to higher grade ore mined at Apensu in 2010 and the commencement of production at Amoma in October 2010. Costs applicable to sales per ounce increased slightly due to higher labor, power, diesel and royalty costs, partially offset by higher production.

2011 attributable gold production for the Africa operations is expected to be approximately 550,000 to 590,000 ounces due to mining higher ore grade. Costs applicable to sales of approximately $485 to $535 per ounce are expected for 2011, primarily as a result of higher energy prices and higher labor and royalty costs.

Capital Update

Consolidated capital expenditures were $1.4 billion in 2010, down from $1.8 billion in 2009, due to the completion of construction at Boddington.  Approximately $319 million was spent on major projects in 2010, with the balance largely attributed to sustaining capital.  The Company currently plans to spend $2.1 to $2.5 billion in attributable capital expenditures in 2011, or $2.7 to $3.0 billion on a consolidated basis.  Approximately 40% of 2011 consolidated capital expenditures are expected to be related to major project initiatives, including further development of the Akyem project in Ghana, the Conga project in Peru, Hope Bay in Canada, and the Nevada project portfolio, while the remaining 60% is expected to be for growth and sustaining capital.

2011 Outlook(5)--Our current outlook for 2011 is as follows:  


2011 Outlook

2011 Outlook

2011 Outlook

2011 Outlook

Region

Attributable Production

Consolidated CAS

Consolidated Capital

Attributable Capital


(Kozs, Mlbs)

($/oz, $/lb)

Expenditures

Expenditures

Nevada

1,800 - 1,900

$565 - $615

$460 - $520

$460 - $520

La Herradura

180 - 200

$480 - $510

$70 - $80

$70 - $80

Hope Bay

-

-

$70 - $100

$70 - $100

 North America

1,980 - 2,100

$560 - $600

$600 - $700

$600 - $700

Yanacocha

675 - 725

$500 - $550

$310 - $400

$160 - $200

La Zanja

40 - 50

n/a

-

-

Conga

-

-

$550 - $700

$300 - $360

 South America

715 - 775

$500 - $550

$900 - $1,100

$460 - $560

Boddington – Gold a

750 - 800

$580 - $620

$210 - $255

$210 - $255

Other Australia/NZ  

1,000 - 1,050

$700 - $770

$230 - $265

$230 - $265

Batu Hijau – Gold b

110 - 140

$400 - $440

$210 - $230

$95 - $110

 Asia Pacific

1,860 - 1,990

$600 - $675

$650 - $750

$535 - $595

Ahafo

550 - 590

$485 - $535

$175 - $200

$175 - $200

Akyem

-


$300 - $375

$300 - $375

 Africa

550 - 590

$485 - $535

$450 - $545

$450 - $545

Corporate/Other



$30 - $40

$30 - $40

Total Gold

5,100 - 5,300

$560 - $590

$2,700 - $3,000

$2,100 - $2,500

Boddington – Copper a

70 - 80

$1.80 - $2.20

-

-

Batu Hijau – Copper b

120 - 140

$1.10 - $1.30

-

-

Total Copper

190 - 220

$1.25 - $1.50



a Boddington shown on a co-product basis.

b Assumes Batu Hijau economic interest of 48.5% for 2011





Description

2011 Outlook

Consolidated Expenses


($M)

General & Administrative

$190 - $200

Interest Expense

$235 - $245

DD&A

$1,025 - $1,035

Exploration Expense

$335 - $345

Advanced Projects & R&D

$405 - $415

Tax Rate

28% - 32%

Assumptions


Gold Price ($/ounce)

$1,300

Copper Price ($/pound)

$4.00

Oil Price ($/barrel)

$90

Australian Dollar Exchange Rate

0.95



(1)

See reconciliation to GAAP net income on page 12.

(2)

Gold operating margin calculated as average realized gold price per ounce, less gold cost applicable to sales per ounce.

(3)

Growth in gold operating margin calculated as the percentage change in gold operating margin per ounce year over year

(4)

See by-product reconciliation on page 13.

(5)

Outlook referenced in the table above and elsewhere in this release is based upon management's good faith estimates as of February 24, 2011 and are considered "forward-looking statements."   References to outlook guidance are based on current mine plans, assumptions noted above and current geotechnical, metallurgical, hydrological and other physical conditions, which are subject to risk and uncertainty as discussed in the "Cautionary Statement" on page 14.



Statements of Consolidated Income



















Three Months Ended


Years Ended




December 31,


December 31,




2010 


2009 


2010 


2009 


(in millions, except per share)


(unaudited)


(audited)

Sales

$

2,548


$

2,518


$

9,540


$

7,705















Costs and expenses  













Costs applicable to sales (1)


877



836



3,484



3,008


Amortization  


248



240



945



806


Reclamation and remediation  


21



25



65



59


Exploration   


55



40



218



187


Advanced projects, research and development  


67



35



216



135


General and administrative   


45



41



178



159


Write-down of property, plant and mine development  


1



3



6



7


Other expense, net  


66



112



261



358





1,380



1,332



5,373



4,719

Other income (expense)  













Other income, net  


12



45



109



88


Interest expense, net   


(69)



(55)



(279)



(120)





(57)



(10)



(170)



(32)

Income from continuing operations before income tax and  













other items  


1,111



1,176



3,997



2,954

Income and mining tax expense  


(71)



(307)



(856)



(829)

Equity income (loss) of affiliates   


10



(2)



3



(16)

Income from continuing operations   


1,050



867



3,144



2,109

Income (loss) from discontinued operations  


(28)



(2)



(28)



(16)

Net income   


1,022



865



3,116



2,093

Net income attributable to noncontrolling interests  


(210)



(307)



(839)



(796)

Net income attributable to Newmont stockholders   

$

812


$

558


$

2,277


$

1,297















Net income attributable to Newmont stockholders:  














Continuing operations   


840



560


$

2,305


$

1,308



Discontinued operations   


(28)



(2)



(28)



(11)





812



558


$

2,277


$

1,297

Income per common share  













Basic:  














Continuing operations   

$

1.71


$

1.14


$

4.69


$

2.68



Discontinued operations   


(0.06)



-



(0.06)



(0.02)




$

1.65


$

1.14


$

4.63


$

2.66


Diluted:  














Continuing operations   

$

1.67


$

1.13


$

4.61


$

2.68



Discontinued operations   


(0.06)



-



(0.06)



(0.02)




$

1.61


$

1.13


$

4.55


$

2.66















Cash dividends declared per common share   







$

0.50


$

0.40




Statements of Consolidated Cash Flow


Three Months Ended December 31,


Years Ended December 31,


2010


2009




2010



2009


(in millions)


(unaudited)



(audited)

Operating activities:













Net income

$

1,022


$

865



$

3,116


$

2,093

Adjustments:













Amortization


248



240




945



806

Stock based compensation and other benefits


16



13




70



57

Reclamation and remediation


21



25




65



59

Revaluation of contingent consideration


2



23




2



23

Loss (Income) from discontinued operations


28



2




28



16

Write-down of property, plant and mine development


1



4




6



7

Impairment of marketable securities


1



-




1



6

Deferred income taxes


(328)



(6)




(380)



1

Gain on asset sales, net


(10)



(21)




(64)



(24)

Other operating adjustments and write-downs


12



23




145



97

Net change in operating assets and liabilities


(168)



(200)




(754)



(227)

Net cash provided from continuing operations 


845



968




3,180



2,914

Net cash provided from (used in) discontinued operations 


-



30




(13)



33

Net cash provided from operations 


845



998




3,167



2,947

Investing activities:













Additions to property, plant and mine development 


(430)



(455)




(1,402)



(1,769)

Acquisitions, net


(2)



(241)




(4)



(1,007)

Proceeds from sale of marketable debt and equity securities


2



7




3



17

Purchases of marketable debt and equity securities


(19)



(5)




(28)



(5)

Proceeds from sale of other assets


3



15




56



18

Other 


29



(14)




(44)



(35)

Net cash used in investing activities


(417)



(693)




(1,419)



(2,781)

Financing activities:













Proceeds from debt, net


-



(3)




-



4,299

Repayment of debt 


(156)



(127)




(430)



(2,731)

Proceeds from stock issuance, net 


4



30




60



1,278

Sale of subsidiary shares to noncontrolling interests


-



638




229



638

Acquisition of subsidiary shares from noncontrolling interests


(1)



(287)




(110)



(287)

Dividends paid to noncontrolling interests


(102)



(279)




(462)



(394)

Dividends paid to common stockholders 


(74)



(49)




(246)



(196)

Change in restricted cash and other 


(2)



(40)




44



(35)

Net cash provided from (used in) financing activities of continuing operations


(331)



(117)




(915)



2,572

Net cash used in financing activities of discontinued operations


-



-




-



(2)

Net cash provided from (used in) financing activities


(331)



(117)




(915)



2,570

Effect of exchange rate changes on cash 


8



5




8



44

Net change in cash and cash equivalents 


105



193




841



2,780

Cash and cash equivalents at beginning of period 


3,951



3,022




3,215



435

Cash and cash equivalents at end of period 

$

4,056


$

3,215



$

4,056


$

3,215



Consolidated Balance Sheets






At December 31,


At December 31,






2010 


2009 






(in millions)




ASSETS







Cash and cash equivalents   


$

4,056


$

3,215

Trade receivables   



582



438

Accounts receivable   



88



102

Investments



113



56

Inventories



658



493

Stockpiles and ore on leach pads



617



403

Deferred income tax assets



177



215

Other current assets



962



900


Current assets   



7,253



5,822

Property, plant and mine development, net



12,907



12,370

Investment



1,568



1,186

Stockpiles and ore on leach pads



1,757



1,502

Deferred income tax assets



1,437



937

Other long-term assets



741



482


Total assets   


$

25,663


$

22,299




LIABILITIES







Debt


$

259


$

157

Accounts payable   



427



396

Employee-related benefits



288



250

Income and mining taxes



355



200

Other current liabilities



1,418



1,317


Current liabilities   



2,747



2,320

Debt



4,182



4,652

Reclamation and remediation liabilities



984



805

Deferred income tax liabilities



1,488



1,341

Employee-related benefits



325



381

Other long-term liabilities



221



187


Total liabilities   



9,947



9,686




EQUITY







Common stock



778



770

Additional paid-in capital   



8,279



8,158

Accumulated other comprehensive income



1,108



626

Retained earnings   



3,180



1,149

Newmont stockholders' equity   



13,345



10,703

Noncontrolling interests   



2,371



1,910


Total equity  



15,716



12,613


Total liabilities and equity   


$

25,663


$

22,299














Production Statistics


Three Months Ended December 31,


Years Ended December 31,


2010


2009


 2010


 2009

Gold








Consolidated ounces produced (thousands):








  North America








Nevada

429


565


1,735


1,986

La Herradura

49


34


174


113


478


599


1,909


2,099

  South America








Yanacocha

331


499


1,462


2,058









  Asia Pacific








  Boddington

206


118


728


122

  Batu Hijau

183


173


737


560

  Kalgoorlie

89


96


377


337

  Jundee

68


107


335


411

  Tanami

67


54


250


289

  Waihi

30


32


108


113


643


580


2,535


1,832

Africa








Ahafo

137


123


545


532


1,589


1,801


6,451


6,521









Copper








Consolidated pounds produced (millions):








  Asia Pacific








   Boddington

15


9


58


10

   Batu Hijau

122


158


542


494


137


167


600


504









Gold








Attributable ounces produced (thousands):








  North America








Nevada

429


565


1,735


1,986

La Herradura

49


34


174


113


478


599


1,909


2,099

  South America








Yanacocha

170


256


750


1,057

Other South America attributable interests

16


-


21


-


186


256


771


1,057









Asia Pacific








  Boddington

206


118


728


122

  Batu Hijau

88


71


364


245

  Kalgoorlie

89


96


377


337

  Jundee

68


107


335


411

  Tanami

67


54


250


289

  Waihi

30


32


108


113

  Other Asia Pacific attributable interests

5


-


5


-


553


478


2,167


1,517

  Africa








Ahafo

137


123


545


532


1,354


1,456


5,392


5,205









Discontinued Operations








Kori Kollo

-


-


-


32


1,354


1,456


5,392


5,237









Copper








Attributable pounds produced (millions):








  Asia Pacific








   Boddington

15


9


58


10

   Batu Hijau

59


66


269


217


74


75


327


227



CAS and Capital Expenditures


Three Months Ended December 31,


Years Ended December 31,


2010


2009


2010


2009

Gold








Costs Applicable to Sales ($/ounce) (1)








North America








    Nevada

$                    520


$                    476


$                    565


$                    509

    La Herradura

434


351


420


372


511


469


551


501

       South America








    Yanacocha

559


303


431


310









       Asia Pacific








    Boddington

624


468


590


468

    Batu Hijau

243


175


237


214

    Kalgoorlie

607


609


558


624

    Jundee

412


306


393


331

    Tanami

630


792


689


599

    Waihi

560


540


647


481


505


408


474


410

       Africa








    Ahafo

433


506


450


444

  Average

$                    512


$                    406


$                    485


$                    411









Copper








Costs Applicable to Sales ($/pound) (1)








Asia Pacific








    Boddington

$                   2.06


$                   1.77


$                   1.86


$                   1.77

    Batu Hijau

0.81


0.58


0.69


0.62

  Average

$                   0.95


$                   0.64


$                   0.80


$                   0.64


















Three Months Ended December 31,


Years Ended December 31,


2010


2009


2010


2009

Consolidated Capital Expenditures ($ million)








  North America








Nevada

$                      98


$                      51


$                    298


$                    205

Hope Bay

27


1


115


5

La Herradura

8


20


41


54


133


72


454


264

  South America








Yanacocha

58


41


167


119

Conga

48


11


134


27


106


52


301


146









  Asia Pacific








Boddington

40


132


146


1,093

Batu Hijau

19


14


67


44

Kalgoorlie

11


5


25


11

Jundee

14


8


44


29

Tanami

35


32


94


74

Waihi

5


2


13


8

Other Asia Pacific

6


1


17


3


130


194


406


1,262

  Africa








Ahafo

29


33


109


75

Akyem

21


6


70


10


50


39


179


85

Corporate and Other

11


4


34


16

Total - Accrual Basis

430


361


1,374


1,773









Change in Capital Accrual

-


94


28


(4)









Total - Cash Basis

$                    430


$                    455


$                 1,402


$                 1,769









(1)     Excludes Amortization and Reclamation and remediation.










Supplemental Information

Non-GAAP Financial Measures

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

Reconciliation of Adjusted Net Income to GAAP Net Income

Management of the Company uses the non-GAAP financial measure Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations.  The Company believes the use of Adjusted net income allows investors and analysts to compare the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill.  Management's determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.  

Net income attributable to Newmont stockholders is reconciled to adjusted net income as follows:



Three months ended


Years ended



December 31,


December 31,


(in millions except per share, after-tax)

2010

2009


2010

2009


GAAP Net income (1)

$  812

$  558


$ 2,277

$ 1,297


Income tax planning and other, net

(264)

-


(391)

-


Net gain on asset sales

(4)

(14)


(39)

(16)


PTNNT community contribution

-

-


13

-


Impairment of assets

1

-


4

8


Boddington acquisition costs

-

-


-

44


Boddington contingent consideration

1

15


1

15


Loss from discontinued operations (1)

28

2


28

11


Adjusted net income

$  574

$  561


$ 1,893

$ 1,359


Adjusted net income per share, basic

$ 1.16

$ 1.14


$   3.85

$   2.79









(1) Attributable to Newmont stockholders.








Reconciliation of Co-Product Costs Applicable to Sales to By-Product Costs Applicable to Sales

Sales and Costs applicable to sales for Boddington are presented in the Condensed Consolidated Financial Statements for both gold and copper due to the significant portion of copper production (approximately 15-20% of revenue based on the latest life-of-mine plan and metal price assumptions). The co-product method allocates costs applicable to sales to each metal based on specifically identifiable costs where applicable and on a relative proportion of sales values for other costs. Management also assesses the performance of the Boddington mine on a by-product basis due to the majority of sales being derived from gold and to determine contingent consideration payments to AngloGold. The by-product method deducts copper sales from costs applicable to sales as shown in the following table:


Three months ended
December 31, 2010

Years ended
December 31, 2010


Boddington

Consolidated

Boddington

Consolidated

($ millions)





Co-product costs applicable to sales - gold

$                         117

$                 777

$                400

$              3,055






Less copper margin:





Sales - copper

45

475

162

1,848

Costs applicable to sales - copper

(24)

(100)

(93)

(429)

   Copper margin

21

375

69

1,419






By-product costs applicable to sales - gold

$                           96

$                 402

$                331

$              1,636






Costs applicable to sales - gold (per ounce)





   Co-product

$                         624

$                 512

$                590

$                 485

   By-product

$                         512

$                 265

$                487

$                 260






Gold ounces sold (thousands)

187

1,518

679

6,296



To view complete financial disclosure, including regional mine statistics, Results of Consolidated Operations, Liquidity and Capital Resources, Management's Discussion & Analysis, the Form 10-K, and a complete outline of the 2011 Operating and Financial guidance by region, please see www.newmont.com.  

The Company's fourth quarter and 2010 earnings and exploration update conference call and web cast presentation will be held on Thursday, February 24, 2011 beginning at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time). 

To participate:





Dial-In Number

888.566.1822


Intl Dial-In Number

312.470.7119


Leader

John Seaberg


Passcode

Newmont


Replay Number

800.879.5507


Intl Replay Number

203.369.3989


Replay Passcode

2011



The conference call also will be simultaneously carried on our web site at www.newmont.com under Investor Relations/Presentations and will be archived there for a limited time.

Cautionary Statement

This 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 which are intended to be covered by the safe harbor created by such sections and other applicable laws.  Such forward-looking statements may include, without limitation: (i) estimates of future mineral production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures; and (iv) expectations regarding the development, growth and exploration potential of the Company’s projects, including, without limitation, Deep Post, Gold Quarry, Twin Creeks, Carlin, North Lantern, La Herradura, Yanacocha, La Zanja, Boddington, Batu Hijau, Jundee, Kalgoorlie, Waihi, Tanami, Apensu, Amoma, Akyem, Conga and Hope Bay.  Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect.  Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current mineral reserve and mineral resource estimates. 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, such 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 the “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 2010 Annual Report on Form 10-K, filed on February 24, 2011, 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,” including, without limitation, outlook, 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.  Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.



CONTACT:  Media, Omar Jabara, +1-303-837-5114, omar.jabara@newmont.com, or Investors John Seaberg, +1-303-837-5743, john.seaberg@newmont.com, or Karli Anderson, +1-303-837-6049, karli.anderson@newmont.com, or Monica Brisnehan, +1-303-837-5836, monica.brisnehan@newmont.com, all of Newmont Mining Corporation

EX-99.2 3 v212431_ex99-2.htm
 
Newmont Gold Reserves Increase to 93.5 Million Ounces

DENVER, February 24, 2011 – Newmont Mining Corporation (NYSE: NEM) (“Newmont” or “the Company”) today announced it increased attributable gold reserves by 1.7 million ounces to 93.5 million ounces in 2010. Highlights include:

 
·
Attributable gold reserves of 93.5 million ounces, an increase of 2% from 2009;
 
·
Average grade of gold reserves unchanged from 2009 at 0.029 ounces per ton;
 
·
Record attributable copper reserves of 9.4 billion pounds, an increase of 3% from 2009; and
 
·
Reserves calculated at $950 per ounce and $2.50 per pound, respectively.

Attributable gold Measured and Indicated non-reserve mineralization (“NRM”)1 for 2010 was 1.3 billion tons at an average grade of 0.019 ounces per ton, up from 1.1 billion tons at an average grade of 0.020 ounces per ton for 2009. In addition, attributable gold Inferred NRM was 504 million tons at an average grade of 0.026 ounces per ton. Attributable copper Measured and Indicated NRM for 2010 was 849 million tons at an average grade of 0.15%, up from 796 million tons at a grade of 0.17% from 2009. In addition, attributable copper Inferred NRM was 390 million tons at an average grade of 0.15%. Gold and copper NRM were calculated using prices of $1,150 per ounce and $3.00 per pound, respectively.


North America was the largest contributor to higher gold reserves in 2010, with significant additions at Leeville-Turf, Twin Creeks, Phoenix and La Herradura.  Other significant reserve additions were at Tanami in the Asia Pacific region and at Ahafo in the Africa region. North America also had the largest contribution to NRM, with significant additions at Greater Gold Quarry, Leeville-Turf, Buffalo Valley and Twin Creeks. Initial NRM was declared at the Merian project in Suriname. Other significant contributors to NRM included KCGM and Tanami in the Asia Pacific region.
 

1 For detailed information on the Company’s year-end attributable Proven and Probable Reserves and Measured, Indicated and Inferred NRM, please refer to the Supplemental Information below and the cautionary statement at the end of this release.

 
Page 1 of 9

 

For 2011, Newmont has budgeted $360 million (on a consolidated basis, including capitalized expenditures) for its exploration program, an increase of approximately 44% from 2010. The significant increase allows for accelerated exploration in all regions including at Leeville-Turf and Hope Bay in North America, Merian and Yanacocha Sulfides in South America, and Elang in Asia Pacific.

Exploration Expenditure ($ Million)


“We are proud of our recent exploration efforts delivering significant organic additions to our reserves,” said Guy Lansdown, EVP of Discovery & Development. “These results have encouraged us to significantly increase our exploration spending in 2011.  We believe our global portfolio of land positions offers considerable opportunity for continued reserve growth in our operating districts through the drill bit. Additionally, our generative exploration activities continue to allow us to look beyond current geographies into exciting new opportunities.”

Near-Mine Exploration:  2010 Highlights and 2011 Planned Activity

Newmont’s 2010 Near Mine Exploration program produced strong results from more than 100 drill rigs and one million meters of drilling.  Results spanned the breadth of the resource pipeline, including replacement of depleted reserves from the drill bit.  Newmont’s resource pipeline is well-positioned for aggressive development in 2011 with a 44% budget increase, which will allow Newmont to aggressively develop known targets, determine the full extent of emerging targets, test the viability of new early stage projects and explore for new discoveries.

Highlights of the 2010 Near-Mine Exploration Program

 
·
Leeville-Turf: Reserves and NRM were added through an extensive surface and underground drilling campaign;
 
·
Subika Expansion: An underground exploration drift was initiated in 2010 and advanced to 2,635 meters, while open pit reserves increased by 1.1 Moz; and
 
·
Merian: Initial NRM of 1.8 Moz was added in Suriname. A mineral agreement is currently being negotiated.

Leeville-Turf, Nevada
At the Leeville-Turf underground mine, 59.5 km of combined surface and underground drilling contributed to expansion of reserves and NRM in 2010.  Underground programs added 364 core holes with positive outcomes adding 1.8 Moz of attributable reserves, 0.6 Moz of NRM and expanded known mineralization in all directions.  Following the discovery of ore-grade mineralization up to 1 km from existing workings in early 2010, $25 million was added to the exploration budget for 20 km of deep surface exploration drilling (as deep as 1,200 meters) up to 2.4 kilometers north of the Turf orebody.  Drill intercepts located approximately 450 and 2,700 meters north of the Turf workings encountered 9 m of 14.6 g/t and 10 m of 14 g/t, respectively.

 
Page 2 of 9

 

Greater Gold Quarry, Nevada
Expansion of the Greater Gold Quarry pit contributed to a 1.0 Moz attributable NRM addition in 2010 drawing from a 326 hole (59 km) drilling program and phased layback re-design. There is excellent potential to expand reserves of oxide and refractory ore at Gold Quarry as large-scale drilling programs will continue for at least the next 2-4 years.

Twin Creeks, Nevada
Drilling at Twin Creeks in 2010 included 74 holes (11.5 km).  The program supported cutoff grade changes, pit re-designs and stockpile assignments that combined to add 1.4 Moz of attributable reserves and 0.44 Moz of attributable NRM.

Western Oxides, Peru
At Yanacocha in Peru, the Western District Oxides program at La Quinua Sur, El Tapado and Cerro Negro added 0.6 Moz of attributable reserves. Higher gold price, new metallurgical results and 89 holes drilled in 2008-2009 provided context for updated layback designs and reserve additions.

Merian, Suriname
Based on a total of 179 km drilled in 1,494 holes over the life of the project and positive 2010 prefeasibility studies, 1.8 Moz of attributable NRM was added at the Merian project joint venture. In parallel, the Company is working to finalize a Mineral Agreement with the government of Suriname.

Subika Expansion, Ghana
At the Subika Expansion project, drilling of 28 km in 41 holes aimed at expanding underground and open pit mineral extensions, added 1.1 Moz of attributable open pit reserves in 2010.  The calculation of underground NRM from 91 holes with 25 km of underground core drilling in 2010 will be confirmed through model and stope design updates in mid-2011.  Concurrently, the exploration drift initiated in 2010 advanced 2,635 meters, vent raises were completed and initial test stope production is anticipated in early 2011.  Completion of an underground pre-feasibility study is anticipated in the second quarter of 2011. 

Tanami, Australia
At the Tanami underground mine, the 2007 discovery of the Auron orebody and accelerated drill development has expanded 2010 attributable reserves by 0.7 Moz and attributable NRM by 1.1 Moz.  Drill totals in 2010 added 51 km in 130 core holes.  The Auron orebody sits stratigraphically beneath the Callie mine with potential to access ore from existing underground workings.  Auron has potential to significantly expand mine life at Tanami.  Drilling is designed to continue to prove continuity of this orebody and add resources in 2011.

Hope Bay, Nunavut (Canada)
At Hope Bay, underground drilling, drifting and preparation for test mining will continue in 2011 along with continued exploration of the belt for new discoveries.  Overall drill productivity throughout Hope Bay will increase approximately 50% to an estimated 70-90 km in 2011. The program will focus on confirmation and expansion of known ore bodies plus exploration on the 90 currently identified district targets.

2011 New Near-Mine Activity

Higher metal prices combined with new drilling, metallurgical testing and study work in 2010 led to renewed evaluations on several projects with strong potential to advance in the resource portfolio.  These include the Sleeping Giants (Mike, Fiberline, Copper Basin and Greater Phoenix) in Nevada, Yanacocha Verde in South America and Elang in Indonesia.

In 2010, a series of internal pre-scoping assessments were completed on the Sleeping Giants in Nevada to evaluate these assets in the context of current metal pricing, current global portfolio opportunities and approximately 20 km of new drilling information.  Positive results on these efforts resulted in four of these very large assets advancing into scoping studies and further exploration as part of the early development pipeline.

 
Page 3 of 9

 

Elang is a copper and gold porphyry deposit lying 60 km east of the Batu Hijau mine in Indonesia.  Increased gold and copper prices enabled the Company to re-evaluate economic potential with positive preliminary results in an early-stage conceptual setting.  Drill permits are approved for the deposit and a 6-10 km drill program is anticipated in 2011 to improve confidence in and possibly expand the consolidated 25 Moz gold and 16 Blb copper target (based on a 3rd party JORC-compliant resource estimate effective June 2010).

At the Yanacocha Verde project in Peru, exciting new metallurgical results may unlock gold and copper mineralization directly below the oxide deposits in the Yanacocha district. The exploration program is focused on quickly advancing to pilot-scale testing and resource conversion drilling.

Generative Exploration: 2010 Results and 2011 Planned Activity
 
In 2010, Newmont continued to position its Generative Exploration program in the top five percent most prospective geological domains worldwide, where the potential exists for district size opportunities. With a $50 million budget, the Generative Exploration program continued its success of finding and delivering district potential targets into the project pipeline as part of its commitment to organic growth.

Highlights include:
 
·
A new discovery with significant potential at Cassador2 in Suriname, building on the previous discoveries at Merian and Saramacca and confirming the potential of the district;
 
·
Highly promising early stage scout drilling results in the West African program;
 
·
Generation of twenty quality targets with significant potential for the 2011 drilling program; and
 
·
Further consolidation of land positions in Peru, Alaska and Mali.

The new discovery at Cassador in Suriname in the Guiana Shield is a good example of Newmont’s successful exploration ventures in discovering and building the next mineral district. Limited exploration scout drilling to date confirmed the target potential over a 1 km strike length and down to a depth of approximately 200 meters. In addition, there is evidence from scout drilling that the mineralized system extends at least 3 km along strike; it contains a number of blind shoots parallel to the main structure and it extends for at least another 100 meters at depth with the system getting stronger. There are also a number of structures parallel to the main structure with encouraging soil geochemical and trench results.

Based on the size and quality of the current portfolio of undrilled targets the Company has increased the Generative Exploration budget to approximately $60 million in 2011, representing a 20% increase relative to 2010. Highlights of the 2011 program include:
 
·
Further test the upside potential at Cassador in Suriname;
 
·
Follow up on early stage promising results in West Africa;
 
·
Drill test 15 to 20 quality targets totaling approximately 95,000 meters in PNG, Solomon Islands, Haiti, Peru and West Africa; and
 
·
Generate 15 to 20 quality new targets to sustain a strong worldwide portfolio.
 

2 NEM currently 50% owner with option to earn into 80% by completing a Feasibility Study

 
Page 4 of 9

 

Supplemental Information:
 
Attributable Proven, Probable, and Combined Gold Reserves(1)
         
December 31, 2010
   
December 31, 2009
 
         
Proven Reserves
   
Probable Reserves
   
Proven and Probable
Reserves
         
Proven + Probable Reserves
 
   
Newmont
   
Tonnage
   
Grade
   
Gold
   
Tonnage
   
Grade
   
Gold
   
Tonnage
   
Grade
   
Gold
   
Metallurgical
   
Tonnage
   
Grade
   
Gold
 
Deposits/Districts by Reporting Unit
 
Share
   
(000 tons)
   
(oz/ton)
   
(000 ozs)
   
(000 tons)
   
(oz/ton)
   
(000 ozs)
   
(000 tons)
   
(oz/ton)
   
(000 ozs)
   
Recovery
   
(000 tons)
   
(oz/ton)
   
(000 ozs)
 
                                                                                     
North America
                                                                                   
Carlin Open Pits, Nevada(2)
    100 %     36,600       0.064       2,340       226,900       0.040       8,980       263,500       0.043       11,320       75 %     259,300       0.044       11,400  
Carlin Underground, Nevada
    100 %     5,800       0.272       1,570       8,800       0.330       2,910       14,600       0.307       4,480       88 %     9,700       0.311       2,990  
Midas, Nevada(3)
    100 %     200       0.394       100       300       0.264       90       500       0.319       190       95 %     700       0.425       300  
Phoenix, Nevada
    100 %     0               0       329,800       0.018       6,090       329,800       0.018       6,090       73 %     285,000       0.020       5,670  
Twin Creeks, Nevada
    100 %     11,400       0.097       1,110       46,400       0.071       3,280       57,800       0.076       4,390       79 %     50,200       0.077       3,850  
Turquoise Ridge, Nevada(4)
    25 %     1,400       0.458       640       1,700       0.456       770       3,100       0.457       1,410       92 %     2,600       0.507       1,360  
Nevada In-Process(5)
    100 %     28,500       0.022       610       0               0       28,500       0.022       610       62 %     33,800       0.021       730  
Nevada Stockpiles(6)
    100 %     33,900       0.077       2,630       2,800       0.028       80       36,700       0.074       2,710       78 %     29,500       0.075       2,210  
Total Nevada
            117,800       0.076       9,000       616,700       0.036       22,200       734,500       0.042       31,200       78 %     670,800       0.042       28,510  
La Herradura, Mexico(7)
    44 %     44,600       0.023       1,010       61,100       0.021       1,280       105,700       0.022       2,290       66 %     93,200       0.019       1,780  
TOTAL NORTH AMERICA
            162,400       0.062       10,010       677,800       0.035       23,480       840,200       0.040       33,490       77 %     764,000       0.040       30,290  
SOUTH AMERICA
                                                                                                               
Conga, Peru(8)
    51.35 %     0               0       317,200       0.019       6,080       317,200       0.019       6,080       79 %     317,200       0.019       6,080  
Yanacocha Open Pits(9)
    51.35 %     23,500       0.028       650       118,800       0.032       3,790       142,300       0.031       4,440       70 %     131,500       0.036       4,750  
Yanacocha In-Process(5)
    51.35 %     21,300       0.025       540       0               0       21,300       0.025       540       74 %     26,400       0.025       660  
Total Yanacocha, Peru
            44,800       0.027       1,190       118,800       0.032       3,790       163,600       0.030       4,980       71 %     157,900       0.034       5,410  
La Zanja, Peru(10)
    46.94 %     10,100       0.018       180       10,500       0.016       160       20,600       0.017       340       66 %     18,800       0.018       340  
TOTAL SOUTH AMERICA
            54,900       0.025       1,370       446,500       0.022       10,030       501,400       0.023       11,400       75 %     493,900       0.024       11,830  
Asia Pacific
                                                                                                               
Batu Hijau Open Pit(11)
    48.50 %     168,800       0.014       2,420       124,600       0.006       700       293,400       0.011       3,120       78 %     368,800       0.010       3,780  
Batu Hijau Stockpiles(6)(11)
    48.50 %     0               0       170,700       0.004       610       170,700       0.004       610       69 %     193,800       0.004       720  
Total Batu Hijau, Indonesia
    48.50 %     168,800       0.014       2,420       295,300       0.004       1,310       464,100       0.008       3,730       76 %     562,600       0.008       4,500  
Boddington, Western Australia
    100 %     181,900       0.021       3,760       885,900       0.019       16,540       1,067,800       0.019       20,300       82 %     966,400       0.022       20,960  
Duketon, Western Australia (12)
    16.2 %     1,800       0.056       100       4,500       0.055       250       6,300       0.055       350       94 %     0               0  
Jundee, Western Australia
    100 %     3,100       0.051       160       1,600       0.373       600       4,700       0.160       760       91 %     7,400       0.159       1,170  
Kalgoorlie Open Pit and Underground
    50 %     15,000       0.061       910       40,700       0.059       2,390       55,700       0.059       3,300       85 %     60,800       0.062       3,750  
Kalgoorlie Stockpiles(6)
    50 %     15,100       0.031       470       0               0       15,100       0.031       470       78 %     14,300       0.031       440  
Total Kalgoorlie, Western Australia
    50 %     30,100       0.046       1,380       40,700       0.059       2,390       70,800       0.053       3,770       84 %     75,100       0.056       4,190  
Tanami, Northern Territories
    100 %     6,400       0.151       970       7,900       0.134       1,070       14,300       0.142       2,040       95 %     13,100       0.125       1,640  
Waihi, New Zealand
    100 %     0               0       4,200       0.110       460       4,200       0.110       460       89 %     4,000       0.101       410  
TOTAL ASIA PACIFIC
            392,100       0.022       8,790       1,240,100       0.018       22,620       1,632,200       0.019       31,410       83 %     1,628,600       0.020       32,870  
Africa
                                                                                                               
Ahafo Open Pits(13)
    100 %     0               0       148,300       0.064       9,540       148,300       0.064       9,540       87 %     128,700       0.068       8,810  
Ahafo Stockpiles(6)
    100 %     14,100       0.033       460       0               0       14,100       0.033       460       86 %     9,300       0.034       320  
Total Ahafo, Ghana
    100 %     14,100       0.033       460       148,300       0.064       9,540       162,400       0.062       10,000       87 %     138,000       0.066       9,130  
Akyem, Ghana(14)
    100 %     0               0       137,900       0.052       7,200       137,900       0.052       7,200       88 %     147,200       0.052       7,660  
TOTAL AFRICA
            14,100       0.033       460       286,200       0.059       16,740       300,300       0.057       17,200       88 %     285,200       0.059       16,790  
TOTAL NEWMONT WORLDWIDE
            623,500       0.033       20,630       2,650,600       0.027       72,870       3,274,100       0.029       93,500       81 %     3,171,700       0.029       91,780  
 
(1)
Reserves are calculated at a gold price of US$950, A$1100, or NZ$1,350 per ounce unless otherwise noted. 2009 reserves were calculated at a gold price of US$800, A$1000, or NZ$1,200 per ounce unless otherwise noted. Tonnage amounts have been rounded to the nearest 100,000 unless they are less than 50,000, and gold ounces have been rounded to the nearest
(2)
Includes undeveloped reserves at the Emigrant deposits for combined total undeveloped reserves of 1.2 million ounces.
(3)
Also contains reserves of 2.8 million ounces of silver with a metallurgical recovery of 88%.
(4)
Reserve estimates provided by Barrick, the operator of the Turquoise Ridge Joint Venture.
(5)
In-process material is the material on leach pads at the end of each year from which gold remains to be recovered. In-process material reserves are reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater than 100,000.
(6)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans. Stockpile reserves are reported separately where tonnage or contained ounces are greater than 5% of the total site-reported reserves and contained ounces are greater
(7)
Includes undeveloped reserves at Noche Buena totaling 0.3 million attributable ounces.
(8)
Deposit is currently undeveloped.
(9)
Reserves include the currently undeveloped deposit at La Quinua Sur, which contains reserves of 0.8 million attributable ounces.
(10)
Reserves estimates were provided by Buenaventura, the operator of the La Zanja project.
(11)
Percentage reflects Newmont’s economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work
(12)
Reserve estimates provided by Regis Resources Ltd, in which Newmont holds a 16.2% interest.
(13)
Includes undeveloped reserves at Yamfo South, Yamfo Central, Techire West, Subenso South, Subenso North, Yamfo Northeast, and Susuan totaling 3.2 million ounces.
(14)
Deposit is undeveloped.
 
 
Page 5 of 9

 

Attributable Gold Mineralized Material Not in Reserves(1)(2)
December 31, 2010  
         
Measured Material
   
Indicated Material
   
Measured +
Indicated Material
   
Inferred Material
 
   
Newmont
   
Tonnage
   
Grade
   
Tonnage
   
Grade
   
Tonnage
   
Grade
   
Tonnage
   
Grade
 
Deposits/Districts
 
Share
   
(000 tons)
   
(oz/ton)
   
(000 tons)
   
(oz/ton)
   
(000 tons )
   
(oz/ton)
   
(000 tons)
   
(oz/ton)
 
                                                       
North America
                                                     
Buffalo Valley, Nevada
    80 %     0             18,300       0.020       18,300       0.020       900       0.017  
Carlin Trend Open Pit, Nevada
    100 %     12,900       0.024       78,900       0.019       91,800       0.020       22,100       0.024  
Carlin Trend Underground, Nevada
    100 %     3,700       0.283       500       0.330       4,200       0.29       1,300       0.345  
Lone Tree Complex, Nevada
    100 %     0               4,200       0.022       4,200       0.022       0          
Midas, Nevada
    100 %     20       0.152       100       0.172       120       0.167       0       0.214  
Phoenix, Nevada
    100 %     0       0.000       150,900       0.013       150,900       0.013       54,300       0.015  
Twin Creeks, Nevada
    100 %     3,300       0.060       34,600       0.037       37,900       0.039       12,000       0.019  
Turquoise Ridge (3), Nevada
    25 %     300       0.422       400       0.392       700       0.406       1,200       0.494  
Nevada Stockpiles (4), Nevada
    100 %     1,100       0.077                       1,100       0.077       2,300       0.043  
Total Nevada
            21,320       0.083       287,900       0.019       309,220       0.024       94,100       0.029  
La Herradura, Mexico
    44 %     8,500       0.018       27,600       0.007       36,100       0.010       20,900       0.014  
TOTAL NORTH AMERICA
            29,820       0.065       315,500       0.018       345,320       0.022       115,000       0.026  
SOUTH AMERICA
                                                                       
Conga, Peru
    51.35 %     0               58,000       0.013       58,000       0.013       79,000       0.011  
Yanacocha, Peru
    51.35 %     4,300       0.012       120,400       0.021       124,700       0.021       23,000       0.018  
Merian, Suriname
    50 %     0               28,900       0.039       28,900       0.039       18,400       0.036  
La Zanja(5), Peru
    46.94 %     200               200       0.000       400       0.000       3,800       0.014  
TOTAL SOUTH AMERICA
            4,500       0.012       207,500       0.016       212,000       0.016       124,200       0.011  
ASIA PACIFIC
                                                                       
Batu Hijau (6), Indonesia
    48.50 %     23,800       0.017       130,500       0.007       154,300       0.008       47,700       0.002  
Boddington, Western Australia
    100 %     39,300       0.014       420,500       0.013       459,800       0.013       160,200       0.014  
Jundee, Western Australia
    100 %     0               1,000       0.178       1,000       0.178       3,600       0.077  
Kalgoorlie, Western Australia
    50 %     1,900       0.064       45,000       0.023       46,862       0.025       1,100       0.146  
Tanami, Northern Territory
    100 %     0               900       0.067       900       0.067       10,300       0.170  
Waihi, New Zealand
    100 %     0               0               0               300       0.140  
TOTAL ASIA PACIFIC
            65,000       0.016       597,900       0.013       662,862       0.013       223,200       0.021  
AFRICA
                                                                       
Ahafo, Ghana
    100 %     0               81,000       0.042       81,000       0.042       39,900       0.084  
Akyem, Ghana
    100 %     0               14,900       0.019       14,900       0.019       1,900       0.032  
TOTAL AFRICA
            0               95,900       0.038       95,900       0.038       41,800       0.082  
TOTAL NEWMONT WORLDWIDE
            99,320       0.031       1,216,800       0.018       1,316,082       0.019       504,200       0.026  
 
(1)
Mineralized material is reported exclusive of reserves.
(2)
Mineralized Material calculated at a gold price of US$950, A$1,200, or NZ$1,400 per ounce unless otherwise noted. 2009 Mineralized material was calculated at a gold price of US$850, A$1,000, or NZ$1,175 per ounce. Tonnage amounts have been rounded to the nearest 100,000.
(3)
Mineralized material estimates were provided by Barrick, the operator of the Turquoise Ridge Joint Venture.
(4)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material in the mills. Stockpiles increase or decrease depending on current mine plans.
(5)
Mineralized material estimates were provided by Buenaventura, the operator of the La Zanja Project.
(6)
Percentage reflects Newmont's economic interest at December 31, 2009. In November and December 2009 our economic interest increased from 45% to 52.44% as a result of transactions with a noncontrolling partner, partially offset by divestiture required under the Contract of Work.
 
 
Page 6 of 9

 
 
Attributable Copper Reserves(1)
December 31, 2010
                                                                     
December 31, 2009
 
         
Proven Reserves
   
Probable Reserves
   
Proven + Probable Reserves
         
Proven + Probable Reserve
 
                     
Copper
               
Copper
               
Copper
                     
Copper
 
   
Newmont
   
Tonnage
   
Grade
   
(million
   
Tonnage
   
Grade
   
(million
   
Tonnage
   
Grade
   
(million
   
Metallurgical
   
Tonnage
   
Grade
   
(million
 
Deposits/Districts
 
Share
   
(000 tons)
   
(Cu%)
   
pounds)
   
(000 tons)
   
(Cu%)
   
pounds)
   
(000 tons)
   
(Cu%)
   
pounds)
   
Recovery
   
(000 tons)
   
(Cu%)
   
pounds)
 
North America
                                                                                   
Phoenix, Nevada
    100 %     0             0       332,600       0.15 %     1,030       332,600       0.15 %     1,030       61 %     287,500       0.16 %     900  
Phoenix Copper Leach, Nevada (2)
    100 %     0             0       132,900       0.23 %     610       132,900       0.23 %     610       53 %     0               0  
TOTAL NORTH AMERICA
            0             0       465,500       0.18 %     1,640       465,500       0.18 %     1,640       58 %     287,500       0.16 %     900  
South America
                                                                                                             
Conga, Peru(3)
    51.35 %     0             0       317,200       0.26 %     1,660       317,200       0.26 %     1,660       85 %     317,200       0.26 %     1,660  
TOTAL SOUTH AMERICA
            0             0       317,200       0.26 %     1,660       317,200       0.26 %     1,660       85 %     317,200       0.26 %     1,660  
Asia Pacific
                                                                                                             
Batu Hijau(3)
    48.50 %     168,800       0.50 %     1,700       124,600       0.34 %     860       293,400       0.44 %     2,560       80 %     368,800       0.42 %     3,130  
Batu Hijau, Stockpiles (3)(4)
    48.50 %     0               0       170,700       0.35 %     1,200       170,700       0.35 %     1,200       66 %     193,800       0.36 %     1,390  
Batu Hijau, Indonesia
    48.50 %     168,800       0.50 %     1,700       295,300       0.35 %     2,060       464,100       0.40 %     3,760       76 %     562,600       0.40 %     4,520  
Boddington, Western Australia (5)
    100.00 %     181,900       0.10 %     380       885,900       0.11 %     1,980       1,067,800       0.11 %     2,360       84 %     966,400       0.11 %     2,040  
TOTAL ASIA PACIFIC
            350,700       0.30 %     2,080       1,181,200       0.17 %     4,040       1,531,900       0.20 %     6,120       79 %     1,529,000       0.21 %     6,560  
TOTAL NEWMONT WORLDWIDE
            350,700       0.30 %     2,080       1,963,900       0.19 %     7,340       2,314,600       0.20 %     9,420       76 %     2,133,700       0.21 %     9,120  
 
(1)
Reserves are calculated at US$2.50 or A$2.95 per pound copper price unless otherwise noted. 2009 reserves were calculated at US$2.00 or A$2.40 per pound copper price unless otherwise noted. Tonnage amounts have been rounded to the nearest 100,000 and pounds have been rounded to the nearest 10 million.
(2)
Project is undeveloped. Leach reserves are within Phoenix Reserve Pit.
(3)
Deposit is undeveloped. Reserve estimates will be recalculated in 2011 upon completion of Feasibility Study Update.
(4)
Percentage reflects Newmont's economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work.
(5)
Stockpiles are comprised primarily of material that has been set aside to allow processing of higher grade material. Stockpiles increase or decrease depending on current mine plans. Stockpiles are reported separately where tonnage or contained metal are greater than 5% of the total site reported reserves.
(6)
Newmont acquired the remaining 33.33% of Boddington from AngloGold in June 2009.
 
Attributable Copper Mineralized Material Not in Reserves(1)(2)

December 31, 2010
 
                     
Measured + Indicated
       
         
Measured Material
   
Indicated Material
   
Material
   
Inferred Material
 
   
Newmont
   
Tonnage
   
Grade
   
Tonnage
   
Grade
   
Tonnage
   
Grade
   
Tonnage
   
Grade
 
Deposits/Districts
 
Share
   
(000 tons)
   
(Cu%)
   
(000 tons)
   
(Cu%)
   
(000 tons)
   
(Cu%)
   
(000 tons)
   
(Cu%)
 
NORTH AMERICA
                                                     
Phoenix, Nevada
    100 %     0       0.00 %     150,900       0.13 %     150,900       0.13 %     56,600       0.12 %
Phoenix Copper Leach, Nevada
    100 %     0       0.00 %     25,900       0.19 %     25,900       0.19 %     45,900       0.22 %
TOTAL NORTH AMERICA
                            176,800       0.14 %     176,800       0.14 %     102,500       0.17 %
SOUTH AMERICA
                                                                       
Conga, Peru
    51.35 %     0       0.00 %     58,000       0.18 %     58,000       0.18 %     79,000       0.17 %
TOTAL SOUTH AMERICA
                            58,000       0.18 %     58,000       0.18 %     79,000       0.17 %
ASIA PACIFIC
                                                                       
Batu Hijau, Indonesia (3)
    48.50 %     23,800       0.42 %     130,500       0.32 %     154,300       0.34 %     47,700       0.26 %
Boddington, Western Australia
    100.00 %     39,300       0.07 %     420,500       0.09 %     459,800       0.08 %     160,200       0.11 %
TOTAL ASIA PACIFIC
            63,100       0.21 %     551,000       0.14 %     614,100       0.15 %     207,900       0.14 %
TOTAL NEWMONT WORLDWIDE
            63,100       0.21 %     785,800       0.14 %     848,900       0.15 %     389,400       0.15 %
 
(1)
Mineralized material is reported exclusive of reserves.
(2)
Mineralized material calculated at a copper price of US$3.00 or A$3.50 per pound unless otherwise noted 2009 mineralized material was calculated at a copper price of US$2.50 or A$3.00 per pound. Tonnage amounts have been rounded to the nearest 100,000.
(3)
Percentage reflects Newmont's economic interest at December 31, 2010. In April 2010 our economic interest decreased from 52.44% to 48.50% as a result of the divestiture required under the Contract of Work.
 
 
Page 7 of 9

 

To view more detailed financial disclosure, including regional mine statistics, Results of Consolidated Operations, Liquidity and Capital Resources, Management’s Discussion & Analysis, relevant Risk Factors, and a complete outline of the 2010 Operating and Financial guidance by region, please see the Company’s Annual Report on Form 10-K, filed with the Securities and Exchange Commission on February 24, 2011, available at www.newmont.com.

The Company’s fourth quarter and 2010 earnings and exploration update conference call and web cast presentation will be held on Thursday, February 24, 2011 beginning at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time).

To participate:

 
Dial-In Number
888.566.1822
 
Intl Dial-In Number
312.470.7119
 
Leader
John Seaberg
 
Passcode
Newmont
 
Replay Number
800.879.5507
 
Intl Replay Number
203.369.3989
 
Replay Passcode
2011

The conference call also will be simultaneously carried on our web site at www.newmont.com under Investor Relations/Presentations and will be archived there for a limited time.
 
Media Contacts
   
Omar Jabara
303.837.5114
omar.jabara@newmont.com
     
Investor Contacts
   
John Seaberg
303.837.5743
john.seaberg@newmont.com
     
Karli Anderson
303.837.6049
karli.anderson@newmont.com
     
Monica Brisnehan
303.837.5836
monica.brisnehan@newmont.com
 
 
Page 8 of 9

 

Cautionary Statement:
Cautionary statement regarding forward-looking statements:  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 which are intended to be covered by the safe harbor created by such sections and other applicable laws.  Forward-looking statements in this news release include, without limitation: (i) 2011 budget estimates, including estimates of future expenditures; (ii) statements regarding future exploration potential, results, Reserves and non-reserve mineralization (NRM); (iii) expectations regarding the ability to enter into future mineral agreements; and (iv) expectations regarding future drilling and testing.  Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect.  Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s early stage and other projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current Mineral Reserve and NRM estimates. 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, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed or implied by the “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.  For additional information regarding key risk factors and assumptions, please see Newmont’s most recent Annual Report on Form 10-K and other SEC filings.  The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, 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. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

Defined terms and statement regarding Reserves and NRM:  Ian Douglas, Newmont’s Group Executive of Reserves and Geostatistics, is the qualified person responsible for the preparation of the Reserve and NRM estimates in this presentation. The Reserves disclosed in this presentation have been prepared in compliance with Industry Guide 7 published by the SEC. As used in this news release, the term “Reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term “economically,” as used in this definition, means that profitable extraction or production has been established or analytically demonstrated in a full feasibility study to be viable and justifiable under reasonable investment and market assumptions. The term “legally,” as used in this definition, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Newmont must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Newmont’s current mine plans. Reserves in this news release may be aggregated from the Proven and Probable classes.  As used in this news release, the term ”non-reserve mineralization” or “NRM” refers to Measured, Indicated and/or Inferred materials, which are exclusive of reserves. Newmont has determined that such NRM would be substantively the same as those prepared using the Guidelines established by the Society of Mining, Metallurgy and Exploration and defined as Resources.  Estimates of NRM are subject to further exploration and development, are subject to additional risks, and no assurance can be given that they will eventually convert to future Mineral Reserves of the company. In addition, our current or future reserves and exploration and development projects may not result in new mineral producing operations.  Even if significant mineralization is discovered and converted to reserves, it will likely take many years from the initial phases of exploration to development and ultimately to production, during which time the economic feasibility of production may change.  Additionally, references to “attributable ounces,” “attributable pounds” and “attributable mineralization” in this news release are intended to mean that portion of gold or copper produced, sold or included in Proven and Probable Reserves or NRM that is attributable to our ownership or economic interest. 
 
 
Page 9 of 9

 
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-----END PRIVACY-ENHANCED MESSAGE-----