/FIRST AND FINAL ADD -- LAW063 -- Newmont Announces First Quarter Net Income of $84 Million ($0.19 per share)/ BASE METAL SUMMARY - BATU HIJAU AND GOLDEN GROVE Three Months Ended March 31, Batu Hijau 2005 2004 Total tons mined (000) 60,198 57,920 Dry tons processed (000) 12,287 13,078 Average copper grade 0.53% 0.64% Average recovery rate 78.3% 85.6% Copper produced (000 lbs) 103,123 141,069 Copper sold (000 lbs) 100,088 131,233 Equity copper produced (000 lbs) 54,526 79,351 Equity copper sold (000 lbs) 52,922 73,819 Realized copper price per pound $1.33 $1.50 Total cash cost per equity pound (1) $0.92 $0.70 Noncash cost per equity pound 0.27 0.17 Total production cost per equity pound (1) $1.19 $0.87 Cost applicable to sales (in millions) $71 $65 Cost applicable to sales per pound sold (1) $0.71 $0.49 Depreciation and amortization (in millions) $27 $21 Depreciation and amortization per pound sold $0.27 $0.17 Three Months Ended March 31, Golden Grove 2005 2004 Total tons mined (000) 320 309 Dry tons processed (000) 320 307 Average copper grade 4.62% 3.17% Average copper recovery rate 92.1% 86.6% Copper produced (000 lbs) 12,681 3,555 Copper sold (000 lbs) -- 2,265 Realized copper price per pound -- $1.37 Copper cash cost per pound (1) -- $0.46 Cost applicable to sales (in millions) ($1) $1 Cost applicable to sales per pound sold (1) -- $0.25 Depreciation and amortization (in millions) -- -- Depreciation and amortization per pound sold -- $0.10 Average zinc grade 11.67% 10.42% Average zinc recovery rate 92.2% 90.7% Zinc produced (000 lbs) 30,036 40,294 Zinc sold (000 lbs) 29,091 45,448 Realized zinc price per pound $0.53 $0.47 Zinc cash cost per pound (1) $0.36 $0.38 Cost applicable to sales (in millions) $3 $8 Cost applicable to sales per pound sold (1) $0.09 $0.19 Depreciation and amortization (in millions) $4 $5 Depreciation and amortization per pound sold $0.14 $0.11 By-product sales Gold (000 ounces) 8.8 0.2 Silver (000 ounces) -- 13.8 (1) Total cash cost per pound for base metals includes smelting and refining costs. Smelting and refining costs are deducted from revenue in the Company's financial statements and are therefore not included in costs applicable to sales. RECONCILIATION OF COSTS APPLICABLE TO TOTAL CASH COSTS PER OUNCE AND PER POUND, AND TOTAL PRODUCTION COSTS PER OUNCE AND PER POUND (DOLLARS IN MILLIONS EXCEPT PER OUNCE AMOUNTS) The total cash costs and total production costs per ounce or pound are non-GAAP performance measures that are intended to provide investors with information about the cash generating capacities and profitability of Newmont's mining operations. Newmont's management uses these measures for the same purpose and for monitoring the performance of its mining operations. These measures differ from measures determined in accordance with GAAP and should not be considered in isolation or as a substitute for measures of performance or liquidity determined in accordance with GAAP. These measures were developed in conjunction with gold mining companies associated with the Gold Institute in an effort to provide a level of comparability; however, Newmont's measures may not be comparable to similarly-titled measures of other companies. Three Months Ended March 31, Golden North 2005 Nevada Giant Holloway Canada La Herradura America Costs applicable to sales under GAAP 182.0 12.9 9.5 22.4 3.9 208.3 Minority interest -- -- -- -- -- -- Accretion expense (1.5) (0.1) -- (0.1) -- (1.6) Write-down of inventories -- -- -- -- -- -- Purchased ore and other (8.9) 0.1 -- 0.1 -- (8.8) Total cash cost for per ounce calculations 171.6 12.9 9.5 22.4 3.9 197.9 Accretion expense and other 1.5 0.1 -- 0.1 -- 1.6 Depreciation, depletion and amortization 30.2 2.8 2.9 5.7 1.2 37.1 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations 203.3 15.8 12.4 28.2 5.1 236.6 Equity ounces sold (000) 557.5 37.8 20.0 57.8 18.9 634.2 Equity cash cost per ounce sold $308 $338 $473 $385 $206 $312 Equity total production cost per ounce sold $365 $414 $619 $485 $269 $373 Three Months Ended March 31, Kori South 2005 Yanacocha Kollo America Pajingo Yandal Tanami Costs applicable to sales under GAAP $110.6 $1.9 $112.5 $15.3 $30.0 $42.7 Minority interest ($55.9) (0.2) ($56.1) -- -- -- Accretion expense ($0.9) (0.3) ($1.2) (0.1) (0.4) (0.4) Write-down of inventories -- -- -- (0.1) ($0.7) ($0.6) Purchased ore and other (0.3) -- (0.3) -- -- -- Total cash cost for per ounce calculations $53.5 $1.4 $54.9 $15.1 $28.9 $41.7 Accretion expense and other $0.9 $0.3 $1.2 0.1 0.4 0.4 Depreciation, depletion and amortization $46.9 0.3 $47.2 $6.1 $6.5 $9.0 Minority interest and other ($21.2) -- ($21.2) -- -- -- Total production cost for per ounce calculations $80.1 $2.0 $82.1 $21.3 $35.8 $51.1 Equity ounces sold (000) 396.9 6.1 403.0 43.9 87.9 146.9 Equity cash cost per ounce sold $135 $232 $136 $343 $329 $284 Equity total production cost per ounce sold $202 $316 $203 $484 $408 $348 Three Months Ended March 31, Australia/ Batu 2005 Kalgoorlie Martha New Zealand Hijau Minahasa Indonesia Costs applicable to sales under GAAP $37.8 $7.3 $133.1 $15.9 $0.0 $15.9 Minority interest -- -- -- ($7.7) -- ($7.7) Accretion expense (0.3) (0.1) (1.3) (0.1) -- (0.1) Write-down of inventories -- -- ($1.4) -- -- -- Purchased ore and other -- -- -- 0.2 -- 0.2 Total cash cost for per ounce calculations $37.5 $7.2 $130.4 $8.3 -- $8.3 Accretion expense and other 0.3 0.1 1.3 0.1 -- 0.1 Depreciation, depletion and amortization $4.6 $4.7 $30.9 $6.3 -- $6.3 Minority interest and other -- -- -- ($3.0) -- ($3.0) Total production cost for per ounce calculations $42.4 $12.0 $162.6 $11.7 $0.0 $11.7 Equity ounces sold (000) 116.5 44.1 439.3 39.9 -- 39.9 Equity cash cost per ounce sold $322 $164 $297 $207 $0 $207 Equity total production cost per ounce sold $364 $273 $370 $292 $0 $292 Three Months Ended March 31, 2005 Zarafshan Ovacik Central Asia/Europe Total Gold Costs applicable to sales under GAAP $6.9 $0.0 $6.9 $476.7 Minority interest -- -- -- ($63.8) Accretion expense ($0.1) -- ($0.1) ($4.3) Write-down of inventories -- -- -- ($1.4) Purchased ore and other ($0.2) -- ($0.2) ($9.1) Total cash cost for per ounce calculations $6.6 -- $6.6 $398.1 Accretion expense and other $0.1 -- $0.1 $4.3 Depreciation, depletion and amortization $2.4 $1.7 $4.1 $125.6 Minority interest and other -- -- -- ($24.2) Total production cost for per ounce calculations $9.1 $1.7 $10.8 $503.8 Equity ounces sold (000)(1) 34.2 -- 34.2 1,550.6 Equity cash cost per ounce sold $192 $0 $192 $257 Equity total production cost per ounce sold $263 $0 $263 $325 (1) Excludes 8.8 thousand ounces from Golden Grove. Three Months Ended March 31, Golden North 2004 Nevada Giant Holloway Canada La Herradura America Costs applicable to sales under GAAP $192.7 $12.9 $6.2 $19.1 $2.2 $214.0 Minority interest -- -- -- -- -- -- Accretion expense ($1.4) ($0.1) -- ($0.1) -- ($1.5) Write-down of inventories -- -- -- -- -- -- Purchased ore and other ($14.1) $0.1 -- $0.1 -- ($14.0) Total cash cost for per ounce calculations $177.2 $12.9 $6.2 $19.1 $2.2 $198.5 Accretion expense and other $1.4 $0.1 -- $0.1 -- $1.5 Depreciation, depletion and amortization $35.1 $3.3 $1.8 $5.1 $1.2 $41.4 Minority interest and other -- -- -- -- -- -- Total production cost for per ounce calculations $213.7 $16.3 $8.0 $24.3 $3.4 $241.4 Equity ounces sold (000) 617.4 52.7 19.2 71.9 17.3 706.6 Equity cash cost per ounce sold $287 $245 $322 $265 $128 $281 Equity total production cost per ounce sold $346 $308 $417 $337 $198 $341 Three Months Ended March 31, Kori South 2004 Yanacocha Kollo America Pajingo Yandal Tanami Costs applicable to sales under GAAP $111.9 $2.4 $114.3 $14.7 $33.4 $49.8 Minority interest ($56.4) ($0.3) ($56.7) -- -- -- Accretion expense ($0.8) ($0.2) ($1.0) ($0.1) ($0.9) ($0.2) Write-down of inventories -- -- -- -- -- ($2.7) Purchased ore and other ($0.1) -- ($0.1) -- -- -- Total cash cost for per ounce calculations $54.6 $1.9 $56.5 $14.6 $32.5 $46.9 Accretion expense and other $0.7 $0.2 $0.9 ($0.1) $0.9 -- Depreciation, depletion and amortization $54.3 $1.1 $55.4 $9.1 $12.3 $10.0 Minority interest and other ($25.1) ($0.1) ($25.2) -- -- -- Total production cost for per ounce calculations $84.5 $3.1 $87.6 $23.6 $45.7 $56.9 Equity ounces sold (000) 410.3 7.2 417.5 75.2 141.1 183.1 Equity cash cost per ounce sold $133 $266 $135 $194 $231 $256 Equity total production cost per ounce sold $206 $427 $210 $313 $324 $311 Three Months Ended March 31, Australia/ Batu 2004 Kalgoorlie Martha New Zealand Hijau Minahasa Indonesia Costs applicable to sales under GAAP $37.0 $5.8 $140.7 $12.7 $8.7 $21.4 Minority interest -- -- -- ($5.8) -- ($5.8) Accretion expense ($0.4) ($0.1) ($1.7) ($0.1) ($0.1) ($0.2) Write-down of inventories -- -- ($2.7) -- -- -- Purchased ore and other -- -- -- $0.4 ($0.5) ($0.1) Total cash cost for per ounce calculations $36.6 $5.7 $136.3 $7.2 $8.1 $15.3 Accretion expense and other $0.4 $0.1 $1.3 $0.1 $0.1 $0.2 Depreciation, depletion and amortization $3.5 $3.1 $38.0 $4.3 $2.7 $7.0 Minority interest and other -- -- -- ($1.9) ($0.2) ($2.1) Total production cost for per ounce calculations $40.5 $8.9 $175.6 $9.7 $10.7 $20.4 Equity ounces sold (000) 121.9 22.6 543.9 56.4 26.2 82.6 Equity cash cost per ounce sold $300 $251 $251 $126 $307 $183 Equity total production cost per ounce sold $332 $388 $323 $171 $408 $246 Three Months Ended March 31, 2004 Zarafshan Ovacik Central Asia/Europe Total Gold Costs applicable to sales under GAAP $8.4 $1.9 $10.3 $500.7 Minority interest -- -- -- ($62.5) Accretion expense ($0.1) ($0.1) ($0.2) ($4.6) Write-down of inventories -- -- -- ($2.7) Purchased ore and other -- -- -- ($14.2) Total cash cost for per ounce calculations $8.3 $1.8 $10.1 $416.7 Accretion expense and other $0.1 -- $0.1 $4.0 Depreciation, depletion and amortization $2.7 $1.2 $3.9 $145.7 Minority interest and other -- -- -- ($27.3) Total production cost for per ounce calculations $11.1 $3.0 $14.1 $539.1 Equity ounces sold (000)(1) 55.9 5.9 61.8 1,812.4 Equity cash cost per ounce sold $148 $302 $163 $230 Equity total production cost per ounce sold $198 $498 $227 $297 (1) Excludes 0.2 thousand ounces from Golden Grove RECONCILIATION OF BATU HIJAU COSTS APPLICABLE TO SALES TO TOTAL CASH COST PER EQUITY POUND, AND TOTAL PRODUCTION COST PER EQUITY POUND (DOLLARS IN MILLIONS EXCEPT PER POUND AMOUNTS) Batu Hijau Three Months Ended March 31, 2005 2004 Costs applicable to sales per financial statements $70.9 $64.6 Minority interest ($34.3) $29.5 Accretion expense ($0.4) $0.5 Smelting and refining $12.6 $16.7 Total cash cost for per pound calculation 48.8 51.3 Accretion expense (0.4) 0.5 Depreciation, depletion and amortization 26.2 21.1 Minority interest 12.3 (9.2) Total production cost for per pound calculation 63.1 63.7 Equity copper sold (000 lbs) 52,922 73,819 Total cash cost per equity pound $0.92 $0.70 Total production cost per equity pound $1.19 $0.87 RECONCILIATION OF GOLDEN GROVE COSTS APPLICABLE TO SALES TO COPPER AND ZINC CASH COSTS PER POUND (IN MILLIONS, EXCEPT PER POUND) Three Months Ended March 31, 2005 2004 Total Copper Zinc Total Copper Zinc Costs applicable to sales per financial statements 2.2 ($0.6) $2.8 $9.1 $0.5 $8.6 Accretion expense (0.2) (0.1) (0.1) (0.1) -- (0.1) Write-down inventories ($0.6) ($0.4) (0.2) -- -- -- Smelting and refining and purchased concentrates $8.1 $0.0 $8.1 $9.1 $0.5 $8.6 Total cash cost for per pound calculation $9.5 ($1.1) $10.6 $18.1 $1.0 $17.1 Total sold (000 lbs) n/a -- 29,091 n/a 2,265 45,448 Total cash cost per pound sold n/a $0.00 $0.36 n/a $0.46 $0.38 RECONCILIATION OF TOTAL NEWMONT COSTS APPLICABLE TO SALES TO TOTAL COPPER CASH COSTS PER EQUITY POUND, (DOLLARS IN MILLIONS EXCEPT PER POUND AMOUNTS) Total Copper Three Months Ended March 31, 2005 2004 Costs applicable to sales per financial statements $70.3 $65.1 Minority interest ($34.3) ($29.5) Accretion expense ($0.5) ($0.5) Write-down inventories ($0.4) -- Smelting and refining $12.6 $17.2 Total cash cost for per pound calculation $47.7 $52.3 Equity copper sold (000 lbs) 52,922 76,084 Total cash cost per equity pound $0.90 $0.69 GOLD HEDGE POSITION - AS OF MARCH 31, 2005 CURRENT MATURITY SUMMARY (1) (3) (000 ounces) Gold Put Option Price Capped Contracts Contracts Years Ozs Price (2) Ozs Price(2) 2005 156 $292 450 $350 2006 100 $338 -- -- 2007 20 $397 -- -- 2008 -- -- 1,000 $384 2009 -- -- 600 $381 2010 -- -- -- -- 2011 -- -- 250 $392 Total/Average 276 $316 2,300 $378 The mark-to-market value of the gold put option contracts was negative $7 million at March 31, 2005. 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, 2004 filed on March 15, 2005. (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 hedge 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 agreed to sell 483,333 ounces of gold, to be delivered in June of each of 2005, 2006 and 2007 in annual installments of 161,111 ounces of gold. For more detailed descriptions, definitions and explanations, refer to the Company's Annual Report on Form 10-K for the year ended December 31, 2004 filed on March 15, 2005. The Company's first quarter earnings conference call and web cast presentation will be held on April 27, 2005 beginning at 4:00 p.m. Eastern Time (2:00 p.m. Mountain Time). To participate: Dial-In Number: (773) 681-5843 Leader: Randy Engel Password: Newmont The conference call will also be simultaneously carried on our web site at http://www.newmont.com/ under Investor Information/Presentations and will be archived there for a limited time. Investor Contacts Randy Engel Telephone: (303) 837-6033 Email: Wendy Yang Telephone: (303) 837-6141 Email: Jennifer Van Dinter Telephone: (303) 837-5165 Email: Media Contacts Doug Hock Telephone: (303) 837-5812 Email: 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 other metals production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures, expenses and tax rates; (iv) estimates regarding timing of future production or closure activities; (v) statements regarding future exploration results and the replacement of reserves; (vi) statements regarding future asset sales or rationalization efforts; and (vii) estimates of future royalty revenues. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company's 2004 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. PRNewswire -- April 27 END FIRST AND FINAL ADD DATASOURCE: Newmont Mining Corporation Web site: http://www.newmont.com/

Copyright