-----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, TrXYPhJz8guij+2rejoIKBIwi7+JXxLo7fPJhzN41xZyC94pBcHEo5eKbpcu87Ep b+gHySb6JTcslcoJUKbrHA== 0001275287-06-002028.txt : 20060420 0001275287-06-002028.hdr.sgml : 20060420 20060420104624 ACCESSION NUMBER: 0001275287-06-002028 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20060420 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060420 DATE AS OF CHANGE: 20060420 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: 06768948 BUSINESS ADDRESS: STREET 1: 1700 LINCOLN STREET CITY: DENVER STATE: CO ZIP: 80203 BUSINESS PHONE: 303-863-7414 MAIL ADDRESS: STREET 1: 1700 LINCOLN STREET CITY: DENVER STATE: CO ZIP: 80203 FORMER COMPANY: FORMER CONFORMED NAME: DELTA HOLDCO CORP DATE OF NAME CHANGE: 20020109 8-K 1 nm5457.txt FORM 8-K ================================================================================ SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ---------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): April 20, 2006 NEWMONT MINING CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware ---------------------------------------------- (State or Other Jurisdiction of Incorporation) 001-31240 ------------------------ (Commission File Number) 84-1611629 ------------------------------------ (I.R.S. Employer Identification No.) 1700 Lincoln Street, Denver, Colorado 80203 --------------------------------------------------- (Address of principal executive offices) (zip code) (303) 863-7414 ---------------------------------------------------- (Registrant's telephone number, including area code) Not Applicable ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 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)) ================================================================================ ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION On April 20, 2006, Newmont Mining Corporation, a Delaware corporation, issued a news release reporting its financial results for the first quarter ended March 31, 2006. A copy of the news release is furnished as Exhibit 99.1 to this report. ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS (d) Exhibits Exhibit Number Description of Exhibit - -------------- --------------------------------- 99.1 News Release dated April 20, 2006 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: Sharon E. Thomas ----------------------------- Name: Sharon E. Thomas Title: Vice President and Secretary Dated: April 20, 2006 3 EXHIBIT INDEX Exhibit Number Description of Exhibit - -------------- --------------------------------- 99.1 News Release dated April 20, 2006 4 EX-99.1 2 nm5457ex991.txt EXHIBIT 99.1 Exhibit 99.1 NEWMONT MINING CORPORATION FIRST QUARTER 2006 RESULTS First Quarter Income From Continuing Operations Rises to $213 Million ($0.48 Per Share); On Rising Gold Prices and Targeted Operating Performance DENVER, April 20 /PRNewswire-FirstCall/ -- Newmont Mining Corporation (NYSE: NEM) today announced first quarter income from continuing operations of $213 million ($0.48 per share) compared with $85 million ($0.19 per share) for the first quarter of 2005. First quarter net income from continuing operations was positively impacted by a $48 million ($0.11 per share) tax adjustment. First quarter highlights included: * Consolidated gold sales of 1.8 million ounces (1.4 million equity ounces) at costs applicable to sales of $275 per ounce and an average realized gold price of $555 per ounce; * Net cash provided by continuing operations of $240 million, after a $164 million increase in working capital; and * Cash and cash equivalents, marketable securities and short-term investments of $1.5 billion. Wayne W. Murdy, Chairman and Chief Executive Officer, said, "Our first quarter's results reflect strong margin and earnings per share growth from a higher realized gold price of $555 per ounce and our continued focus on cost containment. With the current gold price in excess of $600 per ounce, we expect to deliver expanding gold margins for our shareholders."
FINANCIAL (in millions, except per share) First Quarter 2006 First Quarter 2005 ------------------------------------------- ------------------ ------------------ Revenues $ 1,148 $ 945 Net cash provided from continuing operations $ 240 $ 187 Income from continuing operations $ 213 $ 85 Income from continuing operations per common share $ 0.48 $ 0.19 OPERATING Consolidated gold sales (000 ounces)(1) 1,838.6 1,974.0 Equity gold sales (000 ounces)(1) 1,392.1 1,550.6 Average realized gold price ($/ounce) $ 555 $ 425 Costs applicable to sales ($/ounce) $ 275 $ 237
1. Includes 14,200 ounces sold in 2006 from incidental sales during start- up at Leeville and Phoenix, and 13,300 ounces in 2006 (20,000 in 2005) from the Holloway discontinued operation. FINANCIAL AND OPERATING REVIEW First quarter 2006 income from continuing operations was $213 million ($0.48 per share), compared with $85 million ($0.19 per share) for the first quarter of 2005. Income from continuing operations for the first quarter was impacted by the following items:
First Quarter 2006 First Quarter 2005 ---------------------- ---------------------- IMPACT OF THE FOLLOWING TRANSACTIONS (after-tax) $ Million EPS $ Million EPS ------------------------------ --------- --------- --------- --------- Tax estimate revisions - Australia $ 48 $ 0.11 $ 19 $ 0.04 Buyat Bay litigation expenses $ (2) $ (0.00) $ (5) $ (0.01) Gain on sale of Bermejal -- -- $ 20 $ 0.04 Nevada waste dump slide expenses -- -- $ (4) $ (0.01)
These items had the net effect of increasing income from continuing operations for the first quarter of 2006 by $46 million ($0.11 per share) and increasing income from continuing operations for the first quarter of 2005 by $30 million ($0.06 per share). The Company generated net cash from continuing operations of $240 million in the first quarter of 2006, after a $164 million increase in working capital. OPERATING HIGHLIGHTS
NEVADA First Quarter 2006 First Quarter 2005 ----------------------------------- ------------------ ------------------ Consolidated gold sales (000 ounces) 535.0 588.6 Equity gold sales (000 ounces) 489.3 557.5 Consolidated costs applicable to sales ($/ounce) $ 395 $ 309
In Nevada, gold ounces sold decreased 9% during the first quarter of 2006 compared with the same period in 2005, primarily as a result of a 14% decrease in mill ore grade. The decrease in mill ore grade resulted from mining lower grades at the Midas and Deep Post underground mines. Mill throughput was lower as a result of 14 days of unplanned downtime at Mill 5. Costs applicable to sales per ounce increased 28%, primarily due to a decrease in ounces produced and increased labor, diesel, cyanide and underground contract service costs, as well as a change in accounting for deferred stripping. During the second quarter, costs applicable to sales per ounce are expected to temporarily increase as a result of regularly planned annual maintenance at Mill 6.
YANACOCHA First Quarter 2006 First Quarter 2005 ----------------------------------- ------------------ ------------------ Consolidated gold sales (000 ounces) 769.9 772.9 Equity gold sales (000 ounces) 395.3 396.9 Consolidated costs applicable to sales ($/ounce) $ 161 $ 143
At Yanacocha, gold ounces sold remained constant in the first quarter of 2006 from the first quarter of 2005 as a 25% increase in ore grade and a 19% increase in tons of ore placed were offset by the timing of flows from the leach pads. The increase in ore placed resulted from an increase in tons mined and lower waste removal at the La Quinua and Yanacocha pits. Ore grade also increased at La Quinua, as mining accessed higher grade ore at the bottom of the pit. Costs applicable to sales per ounce increased 13% due to the increase in tons mined, increased consumption of higher priced commodities, and from higher labor and royalty costs resulting from increased gold prices.
AUSTRALIA/NEW ZEALAND First Quarter 2006 First Quarter 2005 ----------------------------------- ------------------ ------------------ Consolidated gold sales (000 ounces) 333.5 439.3 Equity gold sales (000 ounces) 333.5 439.3 Consolidated costs applicable to sales ($/ounce) $ 384 $ 303
In Australia and New Zealand, gold ounces sold declined 24% in the first quarter of 2006 as compared with the same period in 2005, primarily due to lower grades at Kalgoorlie, Jundee and Martha, combined with lower throughput at Tanami and Pajingo. Costs applicable to sales per ounce increased 27% in the first quarter of 2006 from 2005, primarily due to the decrease in ounces sold. At Tanami in Australia, gold ounces sold decreased 26% in the first quarter of 2006 from the first quarter of 2005, primarily due to a 30% decline in mill throughput resulting from the completion of processing Groundrush stockpiles. Costs applicable to sales per ounce increased 19%, primarily due to lower gold production. At Kalgoorlie in Australia, gold ounces sold decreased 19% in the first quarter of 2006 from the first quarter of 2005, primarily due to a 19% decrease in ore grade milled and a 7% decrease in tons milled. Costs applicable to sales per ounce increased 43%, primarily due to lower gold production, and increased maintenance, diesel and reagent costs. At Jundee in Australia, gold ounces sold decreased 29% in the first quarter of 2006 from the first quarter of 2005, primarily due to a 12% decrease in tons milled and a 17% decrease in mill ore grade. The decrease in tons milled was attributable to severe weather conditions and flooding, causing an extended mill shutdown. Costs applicable to sales per ounce increased 25%, primarily attributable to lower gold production and higher maintenance costs. At Pajingo in Australia, gold ounces sold decreased 27% in the first quarter of 2006 from the first quarter of 2005, primarily due to a 32% decrease in tons milled resulting from ground control and ventilation system repairs. Costs applicable to sales per ounce increased 26%, primarily due to lower production. At Martha in New Zealand, gold ounces sold decreased 17% in the first quarter of 2006 from the first quarter of 2005, primarily due to a 19% decrease in mill ore grade and a 9% decrease in ore milled, partially offset by higher recovery. Costs applicable to sales per ounce increased 6%, primarily due to decreased production and higher waste removal.
BATU HIJAU First Quarter 2006 First Quarter 2005 ---------------------------------------- ------------------ ------------------ Consolidated copper sales (million pounds) 80.7 100.1 Equity copper sales (million pounds) 42.7 52.9 Consolidated costs applicable to sales ($/pound copper) $ 0.81 $ 0.71 Consolidated gold sales (000 ounces) 72.8 75.4 Equity gold sales (000 ounces) 38.5 39.9 Consolidated costs applicable to sales ($/ounce gold) $ 208 $ 211
At Batu Hijau in Indonesia, copper sales decreased 19% in the first quarter of 2006 from the first quarter of 2005 due to reduced mill tons processed, attributable to harder ore, and an increase in concentrate inventory at quarter end. Gold sales decreased 3%, as the lower mill tons processed and higher concentrate inventory were offset by a 26% increase in gold grade milled. The decrease in copper production resulted in a 14% increase in costs applicable to sales per pound of copper. Batu Hijau also revised its mine plan to address geotechnical instability in the operation's east pit wall. Consolidated sales for 2006 are now expected to be approximately 472 million pounds of copper at costs applicable to sales of $0.64 per pound and 460,000 ounces of gold at costs applicable to sales of $162 per ounce.
OTHER First Quarter 2006 First Quarter 2005 ----------------------------------- ------------------ ------------------ Consolidated gold sales (000 ounces) 127.4 97.8 Equity gold sales (000 ounces) 122.2 97.0 Consolidated costs applicable to sales ($/ounce) $ 216 $ 261
At Golden Giant in Canada, mining operations at Golden Giant were completed in December 2005. Mining and milling of in-circuit inventory ounces in the first quarter of 2006 was higher than expected, resulting in gold sales of 34,100 ounces. At Zarafshan in Uzbekistan, gold ounces sold decreased 14% in the first quarter of 2006 from the first quarter of 2005, primarily due to the timing of flows from the leach pads. Tons placed on the leach pads increased 18% due to milder weather conditions. Costs applicable to sales per ounce increased 19%, primarily as a result of the lower production. At Kori Kollo in Bolivia, gold ounces sold increased significantly in the first quarter of 2006 from the placement of additional material from the Kori Kollo pit on the existing leach pad and ore from the Kori Chaca pit on the new leach pad. Production in the first quarter of 2005 resulted from residual leaching from an existing leach pad. Costs applicable to sales per ounce decreased 39% in the first quarter of 2006 as a result of increased production. At La Herradura in Mexico, gold ounces sold increased 7% in the first quarter of 2006 from the first quarter of 2005, primarily as a result of favorable timing of flows from the leach pads, as the grade of ore placed on the leach pads decreased 26%. Costs applicable to sales per ounce increased by 32%, primarily due to an increase in waste tons mined and increased labor, diesel and other commodity costs. At the discontinued Holloway operation in Canada, gold ounces sold decreased 33% to 13,300 equity ounces. The Company is placing the operation on care and maintenance at the end of April, as it considers value realization alternatives. MERCHANT BANKING Newmont Capital is responsible for the Company's merchant banking activities, including the management of all royalty, equity and asset portfolios, as well as in-house investment banking and advisory services. Newmont achieved record quarterly royalty and dividend income of $29 million, 62% higher than the year ago quarter, driven primarily by higher realized commodity prices. The market value of the marketable equity securities portfolio grew to $1.2 billion at the end of the quarter versus $940 million at the start of the year, driven by capital appreciation. Unrealized pre-tax gains in the portfolio were more than $725 million at quarter-end. During the quarter, the Company acquired the remaining 15% interest in the Akyem project and an additional 22.2% interest in the Boddington project. These two acquisitions add 3.6 million ounces to proven and probable reserves. Subsequent to quarter end, Newmont closed a private placement and ore purchase agreement with Queenstake Resources Ltd. A third season of winter drilling and baseline Environmental Impact Assessment was completed at Newmont's 100% owned Alberta oil sands project. The independent engineering estimate was also updated. Scotia Waterous has been engaged as Newmont's advisor to review value realization alternatives for this asset. CAPITAL PROJECT DEVELOPMENT UPDATE The Leeville underground mine in Nevada is approximately 89% complete. Remaining work primarily relates to construction of underground facilities. Production ramp-up is expected to achieve 2,100 tons per day by the end of 2006. Steady-state production of 3,200 tons per day is expected to be achieved by the end of 2007. The Phoenix mine in Nevada is ramping up to its design production rate of 35,000 tons per day. First gold was shipped from Phoenix in March. Phoenix is expected to produce approximately 350,000 ounces of gold and approximately 20-25 million pounds of copper per year on a steady-state basis. Construction of the 200 megawatt power plant in Nevada was approved by the Newmont Board of Directors in January 2006 after receipt of the final air permit. Project engineering is over 50% complete and construction has commenced. The estimated completion date is mid-2008. The Ahafo project in Ghana is 95% complete. Ore is currently being stockpiled for process start-up and commissioning in June and the project is expected to deliver first gold production in the second half of 2006. The Akyem project in Ghana was approved by the Newmont Board of Directors in July 2005. An environmental impact statement was submitted to the Ghana Environmental Protection Agency in August 2005. Once the environmental impact statement is approved, construction is planned to commence along with a detailed review of capital costs and production timing. The Boddington project in Australia was approved by the Newmont Board of Directors in February of this year. Construction of the project is expected to commence in the second half of 2006, with Newmont's share of the capital cost expected to be approximately $900 million to $1.0 billion. Initial gold production is expected in late 2008 or early 2009. EXPLORATION, ADVANCED PROJECTS, RESEARCH & DEVELOPMENT Exploration expenditures were $33 million in the first quarter of 2006, compared with $26 million in the year ago quarter. Advanced projects, research and development expenditures were $21 million in the first quarter of 2006 as compared with $17 million in the first quarter of 2005. In Ghana, ore body extensions at depth in south Ahafo continue to provide encouraging results that justify follow up drilling, with potential underground mining opportunities being evaluated. In Nevada, encouraging first quarter results at Gold Quarry, Genesis, Twin Creeks and Phoenix will require further drilling targeted at reserve and non-reserve material additions. In Peru, drill programs are focused on oxide targets in the Yanacocha district and in the Conga region. In Australia, positive drill results at KCGM underground and Tanami will be followed up this year. In New Zealand, down dip offsets at Favona indicate potential ore body extensions. 2006 GUIDANCE The Company expects to sell approximately 7.70-7.90 million consolidated ounces of gold (6.10-6.25 million equity ounces) at costs applicable to sales of approximately $280-$295 per ounce. The Company also expects to sell approximately 470-475 million consolidated pounds of copper (250-255 million equity pounds) at costs applicable to sales of approximately $0.60-$0.65 per pound. Consolidated Consolidated Costs Equity Sales Sales Applicable to Gold (000 ounces) (000 ounces) Sales ($/oz) ---------------------- ------------- --------------- ------------- Nevada 2,410 - 2,425 2,585 - 2,605 $380 - $385 Yanacocha, Peru 1,330 - 1,345 2,585 - 2,620 $185 - $195 Australia/New Zealand 1,485 - 1,535 1,485 - 1,535 $335 - $350 Batu Hijau, Indonesia 240 - 250 455 - 465 $155 - $165 Ahafo, Ghana 255 - 265 255 - 265 $225 - $230 Other (1),(2) 380 - 430 380 - 430 $215 - $240 TOTAL GOLD 6,100 - 6,250 7,700 - 7,900 $280 - $295 Consolidated Consolidated Costs Equity Sales Sales Applicable to Copper (million lbs) (million lbs) Sales ($/lb) ---------------------- ------------- --------------- ------------- Batu Hijau 250 - 255 470 - 475 $0.60 - $0.65 Consolidated Financial Guidance ($ in million, except tax rate) Royalty and dividend income $75-$90 Depreciation, depletion & amortization $675-$725 Exploration $150-$160 Advanced projects, research and development $50-$60 General and administrative $150-$160 Interest expense, net $95-$105 Tax rate (assuming $550/oz gold) 25%-29% Capital expenditures(3) $1,400-$1,600 (1) Includes Holloway, Golden Giant, La Herradura, Kori Kollo and Zarafshan. (2) At December 31, 2005, the Company classified Holloway as an asset held for sale. Operating results for Holloway have been reclassified to discontinued operations for all periods presented. (3) Includes approximately $47 million related to the acquisition of the additional 22.2% interest in Boddington. STATEMENTS OF CONSOLIDATED INCOME
Three Months Ended March 31, ---------------------------- 2006 2005 ------------ ------------ (unaudited, in millions except per share) Revenues Sales - gold, net $ 1,011 $ 836 Sales - copper, net 137 109 1,148 945 Costs and expenses Costs applicable to sales (exclusive of depreciation, depletion and amortization shown separately below) Gold 501 468 Copper 65 71 Depreciation, depletion and amortization 142 161 Exploration 33 26 Advanced projects, research and development 21 17 General and administrative 37 31 Other expense, net 14 24 813 798 Other income (expense) Other income, net 35 67 Interest expense, net (20) (21) 15 46 Income from continuing operations before income tax expense, minority interest and equity income of affiliates 350 193 Income tax expense (38) (53) Minority interest in income of subsidiaries (99) (59) Equity income of affiliates -- 4 Income from continuing operations 213 85 Loss from discontinued operations (4) (1) Net income $ 209 $ 84 Income per common share Basic: Income from continuing operations $ 0.48 $ 0.19 Loss from discontinued operations (0.01) -- Net income $ 0.47 $ 0.19 Diluted: Income from continuing operations $ 0.47 $ 0.19 Loss from discontinued operations (0.01) -- Net income $ 0.46 $ 0.19 Basic weighted-average common shares outstanding 448 446 Diluted weighted-average common shares outstanding 451 448 Cash dividends declared per common share $ 0.10 $ 0.10
CONSOLIDATED BALANCE SHEETS At March 31, At December 31, 2006 2005 ------------ --------------- (unaudited, in millions) ASSETS Cash and cash equivalents $ 979 $ 1,082 Marketable securities and other short-term investments 535 817 Trade receivables 147 94 Accounts receivable 127 136 Inventories 349 320 Stockpiles and ore on leach pads 277 255 Deferred stripping costs -- 78 Deferred income tax assets 180 159 Other current assets 115 95 Current assets 2,709 3,036 Property, plant and mine development, net 6,011 5,645 Investments 1,182 955 Long-term stockpiles and ore on leach pads 687 603 Deferred stripping costs -- 100 Deferred income tax assets 660 517 Other long-term assets 198 183 Goodwill 2,902 2,879 Assets of operations held for sale 76 74 Total assets $ 14,425 $ 13,992 LIABILITIES Current portion of long-term debt $ 202 $ 196 Accounts payable 232 232 Employee-related benefits 163 176 Derivative instruments 410 270 Other current liabilities 495 476 Current liabilities 1,502 1,350 Long-term debt 1,705 1,733 Reclamation and remediation liabilities 454 445 Deferred income tax liabilities 509 449 Employee-related benefits 282 273 Other long-term liabilities 303 414 Liabilities of operations held for sale 22 21 Total liabilities 4,777 4,685 Minority interest in subsidiaries 977 931 STOCKHOLDERS' EQUITY Common stock 669 666 Additional paid-in capital 6,631 6,578 Accumulated other comprehensive income 533 378 Retained earnings 838 754 Total stockholders' equity 8,671 8,376 Total liabilities and stockholders' equity $ 14,425 $ 13,922 STATEMENTS OF CONSOLIDATED CASH FLOW
Three Months Ended March 31, ---------------------------- 2006 2005 ------------ ------------ (unaudited, in millions) Operating activities: Net income $ 209 $ 84 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, depletion and amortization 142 161 Loss from discontinued operations 4 1 Accretion of accumulated reclamation obligations 7 7 Amortization of deferred stripping costs, net -- (34) Deferred income taxes (72) (7) Minority interest expense 99 59 Gain on asset sales, net (2) (38) Hedge (gain) loss, net (9) 12 Other operating adjustments and write-downs 26 6 Decrease (increase) in operating assets: Trade and accounts receivable (44) (30) Inventories, stockpiles and ore on leach pads (124) (13) Other assets (9) 4 Increase (decrease) in operating liabilities: Accounts payable and other accrued liabilities 25 (19) Reclamation liabilities (12) (6) Net cash provided from continuing operations 240 187 Net cash (used in) provided from discontinued operations (5) 1 Net cash from operations 235 188 Investing activities: Additions to property, plant and mine development (370) (229) Additions to property, plant and mine development of discontinued operations -- (13) Investments in marketable debt and equity securities (672) (775) Proceeds from sale of marketable debt and equity securities 970 546 Acquisition of minority interests (187) -- Proceeds from sale of assets 2 52 Net cash used in investing activities (257) (419) Financing activities: Proceeds from debt, net -- 582 Repayment of debt (20) (15) Dividends paid to common stockholders (45) (45) Dividends paid to minority interests (45) (16) Proceeds from stock issuance 38 4 Change in restricted cash and other (8) (1) Net cash (used in) provided from financing activities (80) 509 Effect of exchange rate changes on cash (1) (2) Net change in cash and cash equivalents (103) 276 Cash and cash equivalents at beginning of period 1,082 781 Cash and cash equivalents at end of period $ 979 $ 1,057
OPERATING STATISTICS SUMMARY Three months ended March 31, --------------------------- 2006 2005 ------------ ------------ GOLD Consolidated ounces sold (000): Nevada(1) 535.0 588.6 Yanacocha 769.9 772.9 Batu Hijau 72.8 75.4 Australia/New Zealand Tanami 108.6 146.9 Kalgoorlie 94.0 116.5 Jundee 62.2 87.9 Pajingo 32.0 43.9 Martha 36.7 44.1 333.5 439.3 Other Golden Giant 34.1 37.8 La Herradura 20.2 18.9 Kori Kollo 43.8 6.9 Zarafshan 29.3 34.2 127.4 97.8 1,838.6 1,974.0 Equity ounces sold (000): Nevada(1) 489.3 557.5 Yanacocha 395.3 396.9 Batu Hijau 38.5 39.9 Australia/New Zealand Tanami 108.6 146.9 Kalgoorlie 94.0 116.5 Jundee 62.2 87.9 Pajingo 32.0 43.9 Martha 36.7 44.1 333.5 439.3 Other Golden Giant 34.1 37.8 La Herradura 20.2 18.9 Kori Kollo 38.6 6.1 Zarafshan 29.3 34.2 122.2 97.0 1,378.8 1,530.6 Discontinued operations: Holloway 13.3 20.0 1,392.1 1,550.6 COPPER Batu Hijau (pounds sold in millions): Consolidated 80.7 100.1 Equity 42.7 52.9 (1) Includes 14,200 ounces sold in 2006 from Leeville and Phoenix start- up activities which are not included in Revenue, Costs applicable to sales and Depreciation, depletion and amortization per ounce calculations. Revenues and costs during start-up are included in Other income, net. OPERATING STATISTICS NEVADA(1)
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Open pit Ore 8,751 7,348 Waste 39,303 40,995 Total 48,054 48,343 Underground 405 440 Tons milled/processed (000 dry short tons): Oxide 312 1,302 Refractory 3,218 2,288 Leach 6,603 4,455 Average ore grade (oz/ton): Oxide 0.241 0.107 Refractory 0.130 0.193 Leach 0.024 0.027 Average mill recovery rate: Oxide 92.3% 72.7% Refractory 79.7% 89.6% Ounces produced (000): Oxide 69.3 104.0 Refractory 391.1 393.4 Leach 78.2 78.3 Consolidated 538.6 575.7 Equity 492.5 544.6 Ounces sold (000): Consolidated 535.0 588.6 Equity 489.3 557.5 Production costs (in millions): Costs applicable to sales $ 206 $ 182 Depreciation, depletion and amortization $ 36 $ 30 Production costs (per ounce sold): Direct mining and production costs $ 387 $ 327 Capitalized mining and other (10) (30) Royalties and production taxes 15 9 Reclamation and mine closure costs 3 3 Costs applicable to sales $ 395 $ 309 Depreciation, depletion and amortization $ 68 $ 51
(1) Includes 14,200 ounces sold in 2006 from Leeville and Phoenix start- up activities which are not included in Revenue, Costs applicable to sales and Depreciation, depletion and amortization per ounce calculations. Revenues and costs during start-up are included in Other income, net. OPERATING STATISTICS (CONT'D) YANACOCHA
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Ore 31,082 26,201 Waste 19,293 19,538 Total 50,375 45,739 Tons processed (000 dry short tons): 31,090 26,201 Average ore grade (oz/ton): 0.035 0.028 Ounces produced (000): Consolidated 800.4 795.9 Equity 411.0 408.7 Ounces sold (000): Consolidated 769.9 772.9 Equity 395.3 396.9 Production costs (in millions): Costs applicable to sales $ 124 $ 111 Depreciation, depletion and amortization $ 43 $ 47 Production costs (per ounce sold): Direct mining and production costs $ 163 $ 146 Capitalized mining and other (9) (8) Royalties and production taxes 4 3 Reclamation and mine closure costs 3 2 Costs applicable to sales $ 161 $ 143 Depreciation, depletion and amortization $ 56 $ 61
OPERATING STATISTICS (CONT'D) BATU HIJAU
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons) Ore 31,191 8,238 Waste 28,998 51,961 Total 60,189 60,199 Tons milled (000 dry short tons): 10,829 12,287 Average ore grade: Gold (oz/ton) 0.010 0.008 Copper 0.51% 0.53% Average mill recovery rate: Gold 76.0% 75.2% Copper 85.7% 78.3% Production: Gold ounces (000) Consolidated 83.1 74.2 Equity 44.0 39.2 Copper pounds (millions) Consolidated 94.0 103.1 Equity 49.7 54.5 Sales: Gold ounces (000) Consolidated 72.8 75.4 Equity 38.5 39.9 Copper pounds (millions) Consolidated 80.7 100.1 Equity 42.7 52.9 Gold production costs (in millions): Costs applicable to sales $ 15 $ 16 Depreciation, depletion and amortization $ 4 $ 6 Production costs (per ounce sold): Direct mining and production costs $ 203 $ 263 Capitalized mining and other (7) (62) Royalties and production taxes 10 8 Reclamation and mine closure costs 2 2 Costs applicable to sales $ 208 $ 211 Depreciation, depletion and amortization $ 51 $ 83 Copper production costs (in millions): Costs applicable to sales $ 65 $ 71 Depreciation, depletion and amortization $ 16 $ 26 Copper production costs (per pound sold): Direct mining and production costs $ 0.77 $ 0.83 Capitalized mining and other 0.01 (0.15) Royalties and production taxes 0.02 0.02 Reclamation and mine closure costs 0.01 0.01 Costs applicable to sales $ 0.81 $ 0.71 Depreciation, depletion and amortization $ 0.19 $ 0.26
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND PAJINGO
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons) 114 177 Tons milled (000 dry short tons) 115 168 Average ore grade (oz/ton) 0.272 0.258 Average mill recovery rate 96.9% 97.0% Ounces produced (000): Consolidated 31.8 43.9 Equity 31.8 43.9 Ounces sold (000): Consolidated 32.0 43.9 Equity 32.0 43.9 Production costs (in millions): Costs applicable to sales $ 14 $ 15 Depreciation, depletion and amortization $ 5 $ 6 Production costs (per ounce sold): Direct mining and production costs $ 424 $ 336 Capitalized mining and other (3) (5) Royalties and production taxes 15 15 Reclamation and mine closure costs 3 2 Costs applicable to sales $ 439 $ 348 Depreciation, depletion and amortization $ 149 $ 138
JUNDEE
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Open pit Ore 158 133 Waste 902 1,552 Total 1,060 1,685 Underground 273 292 Tons milled (000 dry short tons) 557 635 Average ore grade (oz/ton) 0.121 0.146 Average mill recovery rate 91.8% 93.0% Ounces produced (000): Consolidated 62.6 88.0 Equity 62.6 88.0 Ounces sold (000): Consolidated 62.2 87.9 Equity 62.2 87.9 Production costs (in millions): Costs applicable to sales $ 26 $ 30 Depreciation, depletion and amortization $ 5 $ 6 Production costs (per ounce sold): Direct mining and production costs $ 404 $ 319 Capitalized mining and other (1) 7 Royalties and production taxes 16 11 Reclamation and mine closure costs 6 4 Costs applicable to sales $ 425 $ 341 Depreciation, depletion and amortization $ 79 $ 74
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND (CONT'D) TANAMI
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons) 523 531 Tons milled (000 dry short tons) 792 1,133 Average ore grade (oz/ton) 0.142 0.129 Average mill recovery rate 95.6% 95.2% Ounces produced (000): Consolidated 108.0 140.8 Equity 108.0 140.8 Ounces sold (000): Consolidated 108.6 146.9 Equity 108.6 146.9 Production costs (in millions): Costs applicable to sales $ 38 $ 43 Depreciation, depletion and amortization $ 7 $ 9 Production costs (per ounce sold): Direct mining and production costs $ 299 $ 265 Capitalized mining and other (1) 3 Royalties and production taxes 45 20 Reclamation and mine closure costs 3 3 Costs applicable to sales $ 346 $ 291 Depreciation, depletion and amortization $ 63 $ 61
KALGOORLIE
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Open pit Ore 1,817 1,959 Waste 9,445 8,385 Total 11,262 10,344 Underground 53 53 Tons milled (000 dry short tons) 1,698 1,829 Average ore grade (oz/ton) 0.062 0.077 Average mill recovery rate 82.6% 88.5% Ounces produced (000): Consolidated 92.5 116.6 Equity 92.5 116.6 Ounces sold (000): Consolidated 94.0 116.5 Equity 94.0 116.5 Production costs (in millions): Costs applicable to sales $ 44 $ 38 Depreciation, depletion and amortization $ 6 $ 5 Production costs (per ounce sold): Direct mining and production costs $ 448 $ 290 Capitalized mining and other (2) 21 Royalties and production taxes 14 11 Reclamation and mine closure costs 5 3 Costs applicable to sales $ 465 $ 325 Depreciation, depletion and amortization $ 70 $ 39
OPERATING STATISTICS - AUSTRALIA AND NEW ZEALAND (CONT'D) MARTHA
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Open pit Ore 574 277 Waste 75 180 Total 649 457 Underground 19 -- Tons milled (000 dry short tons) 302 332 Average ore grade (oz/ton) 0.119 0.148 Average mill recovery rate 94.4% 92.9% Ounces produced (000): Consolidated 38.0 45.1 Equity 38.0 45.1 Ounces sold (000): Consolidated 36.7 44.1 Equity 36.7 44.1 Production costs (in millions): Costs applicable to sales $ 6 $ 7 Depreciation, depletion and amortization $ 3 $ 5 Production costs (per ounce sold): Direct mining and production costs $ 244 $ 216 Capitalized mining and other (74) (52) Royalties and production taxes -- -- Reclamation and mine closure costs 6 2 Costs applicable to sales $ 176 $ 166 Depreciation, depletion and amortization $ 86 $ 107
OPERATING STATISTICS - OTHER OPERATIONS GOLDEN GIANT
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons) 13 141 Tons milled (000 dry short tons) 17 142 Average ore grade (oz/ton) 0.627 0.270 Average mill recovery rate 96.9% 95.5% Ounces produced (000): Consolidated 34.1 37.7 Equity 34.1 37.7 Ounces sold (000): Consolidated 34.1 37.8 Equity 34.1 37.8 Production costs (in millions): Costs applicable to sales $ 8 $ 13 Depreciation, depletion and amortization $ 1 $ 3 Production costs (per ounce sold): Direct mining and production costs $ 216 $ 335 Capitalized mining and other 1 -- Royalties and production taxes -- 2 Reclamation and mine closure costs 6 3 Costs applicable to sales $ 223 $ 340 Depreciation, depletion and amortization $ 17 $ 73
LA HERRADURA
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Ore 937 886 Waste 2,793 1,868 Total 3,730 2,754 Tons processed (000 dry short tons) 937 886 Average ore grade (oz/ton) 0.024 0.032 Ounces produced (000): Consolidated 20.2 18.9 Equity 20.2 18.9 Ounces sold (000): Consolidated 20.2 18.9 Equity 20.2 18.9 Production costs (in millions): Costs applicable to sales $ 6 $ 4 Depreciation, depletion and amortization $ 2 $ 1 Production costs (per ounce sold): Direct mining and production costs $ 273 $ 208 Capitalized mining and other (1) (3) Royalties and production taxes -- -- Reclamation and mine closure costs 2 2 Costs applicable to sales $ 274 $ 207 Depreciation, depletion and amortization $ 98 $ 61
OPERATING STATISTICS - OTHER OPERATIONS (CONT'D) KORI KOLLO
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons): Ore 3,360 n/a Waste 2,346 n/a Total 5,706 n/a Tons processed (000 dry short tons) 3,360 n/a Average ore grade (oz/ton) 0.023 n/a Ounces produced (000): Consolidated 43.8 7.0 Equity 38.5 6.1 Ounces sold (000): Consolidated 43.8 6.9 Equity 38.6 6.1 Production costs (in millions): Costs applicable to sales $ 7 $ 2 Depreciation, depletion and amortization $ 2 $ 0 Production costs (per ounce sold): Direct mining and production costs $ 139 $ 234 Capitalized mining and other (7) (24) Royalties and production taxes 30 18 Reclamation and mine closure costs 7 47 Costs applicable to sales $ 169 $ 275 Depreciation, depletion and amortization $ 49 $ 36
ZARAFSHAN
Three months ended March 31, ----------------------------- 2006 2005 ------------ ------------ Tons mined (000 dry short tons) n/a n/a Tons processed (000 dry short tons) 1,967 1,663 Average ore grade (oz/ton) 0.034 0.034 Ounces produced (000): Consolidated 27.5 34.3 Equity 27.5 34.3 Ounces sold (000): Consolidated 29.3 34.2 Equity 29.3 34.2 Production costs (in millions): Costs applicable to sales $ 7 $ 7 Depreciation, depletion and amortization $ 2 $ 2 Production costs (per ounce sold): Direct mining and production costs $ 234 $ 196 Capitalized mining and other 1 1 Royalties and production taxes -- -- Reclamation and mine closure costs 2 2 Costs applicable to sales $ 237 $ 199 Depreciation, depletion and amortization $ 78 $ 69
GOLD DERIVATIVE POSITION (AS OF MARCH 31, 2006) CURRENT MATURITY SUMMARY (1) (3) (000 OUNCES) PUT OPTION PRICE CAPPED CONTRACTS CONTRACTS ------------------- ------------------- Year Ozs Price(2) Ozs Price(2) - ------------------------- -------- -------- -------- -------- 2006 61 $ 352 -- -- 2007 20 $ 397 -- -- 2008 -- -- 1,000 $ 384 2009 -- -- 600 $ 381 2010 -- -- -- -- 2011 -- -- 250 $ 392 Total/Average 81 $ 363 1,850 $ 384 Notes: (1) For more detailed descriptions, definitions and explanations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2005, filed on March 2, 2006. (2) Prices quoted are gross contract prices, which represent the gross cash flow per ounce of each contract. Not included in these prices are the additional cash outflows associated with borrowing gold over the life of the contract where the contracts are floating in nature. The rate at which gold is borrowed is determined over the life of the contract based on the prevailing market gold lease rate for the time period that the borrowing is fixed. The borrowing can be fixed for varying periods over the life of the contract. (3) In addition to the gold derivative positions shown in the table above, the Company entered into a prepaid forward gold sales contract in July 1999, which is reflected as debt on the Company's consolidated balance sheets. Under the prepaid forward gold sales contract, the Company delivered the first of three annual installments of 161,111 ounces of gold in June 2005. The Company's first quarter earnings conference call and web cast presentation will be held on April 20, 2006 beginning at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time). To participate: Dial-In Number: 212.547.0361 Leader: Randy Engel Password: Newmont The conference call will also be simultaneously carried on our web site at www.newmont.com under Investor Information/Presentations and will be archived there for a limited time. Investor Contacts Randy Engel 303.837.6033 randy.engel@newmont.com John Gaensbauer 303.837.5153 john.gaensbauer@newmont.com Media Contacts Deb Witmer 303.837.5308 deb.witmer@newmont.com Heatheryn Higgins 303.837.5248 heatheryn.higgins@newmont.com Maureen Upton 303.837.5281 maureen.upton@newmont.com Cautionary Statement This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and copper production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures, royalty and dividend income, tax rates and expenses; (iv) estimates regarding timing of future development, construction, production or closure activities; (v) statements regarding future exploration results and the replacement of reserves; and (vi) statements regarding cost structure and competitive 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, 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 2005 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. SOURCE Newmont Mining Corporation -0- 04/20/2006 /CONTACT: Investors, Randy Engel, +1-303-837-6033, randy.engel@newmont.com, or John Gaensbauer, +1-303-837-5153, john.gaensbauer@newmont.com, or Media, Deb Witmer, +1-303-837-5308, deb.witmer@newmont.com, or Heatheryn Higgins, +1-303-837-5248, heatheryn.higgins@newmont.com, or Maureen Upton, +1-303-837-5281, maureen.upton@newmont.com, all of Newmont Mining Corporation/ /Web site: http://www.newmont.com / -----END PRIVACY-ENHANCED MESSAGE-----