/FIRST ADD -- LAW056 -- Newmont Announces Third Quarter Net Income/
Supplemental Information 1. Gold Production Summary -- Americas
Nevada Canada (1) Other (2) Three Months Ended September 30, 2004
2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit
44,076 43,475 n/a n/a 2,993 3,042 Underground 416 414 215 267 n/a
n/a Tons Milled/Processed (000): Oxide 1,148 1,036 214 275 n/a n/a
Refractory 2,187 2,355 n/a n/a n/a n/a Leach 5,135 5,016 n/a n/a
998 1,050 Average Ore Grade (oz/ ton): Oxide 0.116 0.116 0.205
0.259 n/a n/a Refractory 0.199 0.221 n/a n/a n/a n/a Leach 0.027
0.029 n/a n/a 0.028 0.026 Average Mill Recovery Rate: Oxide 79.5%
77.0% 93.8% 95.6% n/a n/a Refractory 90.4% 91.3% n/a n/a n/a n/a
Ounces Produced (000): 597.7 696.0 39.5 60.5 15.9 29.1 Equity
Ounces Produced (000): Oxide 103.8 87.1 39.5 60.5 n/a n/a
Refractory 388.0 514.7 n/a n/a n/a n/a Leach 78.9 94.2 n/a n/a 15.9
29.1 Total 570.7 696.0 39.5 60.5 15.9 29.1 Equity Ounces Sold (000)
570.4 696.9 39.5 60.2 15.9 29.1 Production Costs Per Ounce: Direct
mining and production costs $304 $258 $402 $244 $189 $183
Capitalized mining and other (19) (22) 2 5 (10) (3) Cash operating
costs 285 236 404 249 179 180 Royalties and production taxes 2 4 --
6 -- 7 Total cash costs 287 240 404 255 179 187 Reclamation and
mine closure costs 3 3 2 9 2 4 Total costs applicable to sales 290
243 406 264 181 191 Depreciation and amortization 50 55 96 81 104
65 Total production costs $340 $298 $502 $345 $285 $256 (1)
Includes Golden Giant and Holloway (2) Other includes La Herradura
and for 2003, Mesquite Kori Kollo, Yanacocha, Peru Bolivia Three
Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry
short tons): Open-Pit 50,258 53,268 n/a 1,425 Underground n/a n/a
n/a n/a Tons Milled/Processed (000): Oxide n/a n/a n/a n/a
Refractory n/a n/a n/a 1,764 Leach 36,913 40,524 n/a 978 Average
Ore Grade (oz/ ton): Oxide n/a n/a n/a n/a Refractory n/a n/a n/a
0.035 Leach 0.028 0.027 n/a 0.018 Average Mill Recovery Rate: Oxide
n/a n/a n/a n/a Refractory n/a n/a n/a 60.9% Ounces Produced (000):
754.5 862.4 5.1 48.4 Equity Ounces Produced (000): Oxide n/a n/a
n/a n/a Refractory n/a n/a n/a 32.9 Leach 387.4 442.8 4.5 9.7 Total
387.4 442.8 4.5 42.6 Equity Ounces Sold (000) 397.0 451.2 4.0 43.8
Production Costs Per Ounce: Direct mining and production costs $139
$111 $231 $216 Capitalized mining and other (6) (3) (12) (17) Cash
operating costs 133 108 219 199 Royalties and production taxes 6 5
16 -- Total cash costs 139 113 235 199 Reclamation and mine closure
costs 2 2 58 17 Total costs applicable to sales 141 115 293 216
Depreciation and amortization 69 60 81 34 Total production costs
$210 $175 $374 $250 (1) Includes Golden Giant and Holloway (2)
Other includes La Herradura and for 2003, Mesquite Nevada Canada
(1) Other (2) Nine Months Ended September 30, 2004 2003 2004 2003
2004 2003 Tons Mined (000 dry short tons): Open-Pit 144,523 131,264
n/a n/a 8,509 8,918 Underground 1,123 1,256 740 926 n/a n/a Tons
Milled/Processed (000): Oxide 3,190 1,795 740 943 n/a n/a
Refractory 6,541 6,865 n/a n/a n/a n/a Leach 14,211 12,619 n/a n/a
3,112 3,067 Average Ore Grade (oz/ ton): Oxide 0.131 0.148 0.233
0.242 n/a n/a Refractory 0.193 0.216 n/a n/a n/a n/a Leach 0.024
0.029 n/a n/a 0.027 0.026 Average Mill Recovery Rate: Oxide 79.0%
82.7% 94.3% 95.3% n/a n/a Refractory 90.5% 90.7% n/a n/a n/a n/a
Ounces Produced (000): 1,756.9 1,859.2 164.7 212.2 51.4 93.7 Equity
Ounces Produced (000): Oxide 330.3 217.4 164.7 212.2 n/a n/a
Refractory 1,091.1 1,360.9 n/a n/a n/a n/a Leach 247.9 280.9 n/a
n/a 51.4 93.7 Total 1,669.3 1,859.2 164.7 212.2 51.4 93.7 Equity
Ounces Sold (000) 1,747.8 1,865.1 166.8 211.9 51.4 93.7 Production
Costs Per Ounce: Direct mining and production costs $311 $253 $312
$254 $158 $169 Capitalized mining and other (33) (22) 2 2 (2) (4)
Cash operating costs 278 231 314 256 156 165 Royalties and
production taxes 5 8 2 3 -- 6 Total cash costs 283 239 316 259 156
171 Reclamation and mine closure costs 3 3 1 7 1 3 Total costs
applicable to sales 286 242 317 266 157 174 Depreciation and
amortization 54 57 83 89 76 66 Total production costs $340 $299
$400 $355 $233 $240 (1) Includes Golden Giant and Holloway (2)
Other includes La Herradura and for 2003, Mesquite Kori Kollo,
Yanacocha, Peru Bolivia Nine Months Ended September 30, 2004 2003
2004 2003 Tons Mined (000 dry short tons): Open-Pit 148,295 154,716
n/a 7,638 Underground n/a n/a n/a n/a Tons Milled/Processed (000):
Oxide n/a n/a n/a n/a Refractory n/a n/a n/a 5,400 Leach 102,079
113,317 n/a 3,696 Average Ore Grade (oz/ ton): Oxide n/a n/a n/a
n/a Refractory n/a n/a n/a 0.036 Leach 0.024 0.028 n/a 0.017
Average Mill Recovery Rate: Oxide n/a n/a n/a n/a Refractory n/a
n/a n/a 62.4% Ounces Produced (000): 2,170.0 2,183.9 19.6 161.4
Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory n/a
n/a n/a 108.1 Leach 1,114.3 1,121.4 17.2 34.0 Total 1,114.3 1,121.4
17.2 142.1 Equity Ounces Sold (000) 1,125.0 1,130.0 16.8 144.5
Production Costs Per Ounce: Direct mining and production costs $139
$116 $266 $199 Capitalized mining and other (6) (3) (10) (13) Cash
operating costs 133 113 256 186 Royalties and production taxes 6 5
16 -- Total cash costs 139 118 272 186 Reclamation and mine closure
costs 2 2 41 12 Total costs applicable to sales 141 120 313 198
Depreciation and amortization 74 62 103 34 Total production costs
$215 $182 $416 $232 (1) Includes Golden Giant and Holloway (2)
Other includes La Herradura and for 2003, Mesquite 2. Gold
Production Summary -- Australia/New Zealand Pajingo Yandal (1)
Tanami Three Months Ended September 30, 2004 2003 2004 2003 2004
2003 Tons Mined (000 dry short tons) 161 204 1,738 1,002 2,732
4,948 Tons Milled/Processed (000) 209 204 637 1,394 1,157 1,214
Average Ore Grade (oz/ton) 0.296 0.466 0.134 0.120 0.152 0.129
Average Mill Recovery Rate 97.1% 96.8% 92.6% 90.1% 95.1% 95.7%
Ounces Produced (000) 58.3 91.2 78.0 150.7 166.0 151.3 Equity
Ounces Produced (000) 58.3 91.2 78.0 150.7 166.0 151.3 Equity
Ounces Sold (000) 58.3 90.9 77.9 151.8 163.8 153.1 Production Costs
Per Ounce: Direct mining and production costs $223 $131 $297 $258
$214 $215 Capitalized mining and other (8) (13) -- 3 33 3 Cash
operating costs 215 118 297 261 247 218 Royalties and production
taxes 11 10 11 8 26 23 Total cash costs 226 128 308 269 273 241
Reclamation and mine closure costs 2 -- 4 3 2 1 Total costs
applicable to sales 228 128 312 272 275 242 Depreciation and
amortization 116 90 63 80 56 58 Total production costs $344 $218
$375 $352 $331 $300 (1) 2004 includes Jundee. 2003 includes Jundee,
Bronzewing and Wiluna. Kalgoorlie Martha Three Months Ended
September 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons)
10,549 13,178 1,250 1,549 Tons Milled/Processed (000) 1,839 1,883
345 354 Average Ore Grade (oz/ton) 0.079 0.069 0.121 0.078 Average
Mill Recovery Rate 88.2% 84.0% 89.6% 93.9% Ounces Produced (000)
124.2 115.6 37.9 26.4 Equity Ounces Produced (000) 124.2 115.6 37.9
26.3 Equity Ounces Sold (000) 124.8 116.0 37.6 26.2 Production
Costs Per Ounce: Direct mining and production costs $225 $283 $232
$401 Capitalized mining and other 43 (25) (26) (184) Cash operating
costs 268 258 206 217 Royalties and production taxes 10 8 -- --
Total cash costs 278 266 206 217 Reclamation and mine closure costs
4 4 2 2 Total costs applicable to sales 282 270 208 219
Depreciation and amortization 35 19 100 129 Total production costs
$317 $289 $308 $348 (1) 2004 includes Jundee. 2003 includes Jundee,
Bronzewing and Wiluna. Pajingo Yandal (1) Tanami Nine Months Ended
September 30, 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry
short tons) 471 576 6,321 2,731 11,162 15,929 Tons Milled/Processed
(000) 601 598 2,197 4,010 3,368 3,446 Average Ore Grade (oz/ton)
0.286 0.442 0.127 0.117 0.151 0.141 Average Mill Recovery Rate
96.5% 96.8% 92.7% 90.4% 95.2% 96.1% Ounces Produced (000) 171.6
258.3 266.3 433.6 483.6 467.7 Equity Ounces Produced (000) 171.6
258.3 266.3 433.6 483.6 448.5 Equity Ounces Sold (000) 182.0 258.7
291.0 433.0 505.7 449.3 Production Costs Per Ounce: Direct mining
and production costs $227 $122 $271 $268 $229 $225 Capitalized
mining and other (8) (8) (1) 6 15 (7) Cash operating costs 219 114
270 274 244 218 Royalties and production taxes 11 11 9 9 24 21
Total cash costs 230 125 279 283 268 239 Reclamation and mine
closure costs -- -- 5 3 2 1 Total costs applicable to sales 230 125
284 286 270 240 Depreciation and amortization 121 80 74 70 57 59
Total production costs $351 $205 $358 $356 $327 $299 (1) 2004
includes Jundee for six months and Bronzewing for the first
quarter. 2003 includes Jundee, Bronzewing and Wiluna. Kalgoorlie
Martha Nine Months Ended September 30, 2004 2003 2004 2003 Tons
Mined (000 dry short tons) 34,028 36,229 3,624 3,839 Tons
Milled/Processed (000) 5,272 5,327 1,057 990 Average Ore Grade
(oz/ton) 0.073 0.071 0.096 0.082 Average Mill Recovery Rate 87.0%
85.2% 90.2% 91.8% Ounces Produced (000) 329.0 309.2 90.5 74.5
Equity Ounces Produced (000) 329.0 309.2 90.5 72.8 Equity Ounces
Sold (000) 345.3 309.2 90.3 73.5 Production Costs Per Ounce: Direct
mining and production costs $274 $256 $302 $331 Capitalized mining
and other 14 (2) (85) (106) Cash operating costs 288 254 217 225
Royalties and production taxes 9 9 -- -- Total cash costs 297 263
217 225 Reclamation and mine closure costs 4 3 3 2 Total costs
applicable to sales 301 266 220 227 Depreciation and amortization
34 23 111 111 Total production costs $335 $289 $331 $338 (1) 2004
includes Jundee for six months and Bronzewing for the first
quarter. 2003 includes Jundee, Bronzewing and Wiluna. 3. Gold
Production Summary -- Indonesia and Central Asia/Europe Batu Hijau,
Minahasa, Indonesia Indonesia Three Months Ended September 30, 2004
2003 2004 2003 Tons Mined (000 dry short tons) 59,595 60,928 n/a
n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 13,213
12,300 105 172 Average Ore Grade (oz/ton) 0.023 0.020 0.167 0.142
Average Mill Recovery Rate 83.3% 83.4% 91.6% 93.0% Ounces Produced
(000) 246.2 208.4 16.9 22.2 Equity Ounces Produced (000) 138.5
117.2 15.9 20.9 Equity Ounces Sold (000) 134.1 116.5 20.4 23.1
Production Costs Per Ounce: Direct mining and production costs $129
n/a $116 $173 Capitalized mining and other 28 n/a 3 3 Cash
operating costs 157 n/a 119 176 Royalties and production taxes 9
n/a 27 6 Total cash costs 166 n/a 146 182 Reclamation and mine
closure costs 1 n/a 13 6 Total costs applicable to sales 167 n/a
159 188 Depreciation and amortization 33 n/a (19) 97 Total
production costs $200 n/a $140 $285 Zarafshan, Ovacik, Uzbekistan
Turkey Three Months Ended September 30, 2004 2003 2004 2003 Tons
Mined (000 dry short tons) n/a n/a 1,086 2,152 Tons
Milled/Processed (000): Leach 1,986 2,082 n/a n/a Mill n/a n/a 90
151 Average Ore Grade (oz/ton) 0.038 0.042 0.346 0.338 Average Mill
Recovery Rate n/a n/a 96.2% 93.7% Ounces Produced (000) 44.3 51.6
33.8 48.0 Equity Ounces Produced (000) 44.3 51.6 33.8 48.0 Equity
Ounces Sold (000) 46.1 50.2 34.7 51.5 Production Costs Per Ounce:
Direct mining and production costs $162 $151 $187 $136 Capitalized
mining and other 3 2 (27) (21) Cash operating costs 165 153 160 115
Royalties and production taxes -- -- 14 13 Total cash costs 165 153
174 128 Reclamation and mine closure costs 2 2 3 1 Total costs
applicable to sales 167 155 177 129 Depreciation and amortization
51 49 169 82 Total production costs $218 $204 $346 $211 Batu Hijau,
Minahasa, Indonesia Indonesia Nine Months Ended September 30, 2004
2003 2004 2003 Tons Mined (000 dry short tons) 171,907 174,275 n/a
n/a Tons Milled/Processed (000): Leach n/a n/a n/a n/a Mill 39,819
36,951 441 544 Average Ore Grade (oz/ton) 0.017 0.016 0.158 0.158
Average Mill Recovery Rate 81.0% 80.7% 90.5% 91.1% Ounces Produced
(000) 546.1 480.7 63.8 78.4 Equity Ounces Produced (000) 307.2
270.4 59.9 73.7 Equity Ounces Sold (000) 301.7 262.7 70.2 81.2
Production Costs Per Ounce: Direct mining and production costs $135
n/a $248 $222 Capitalized mining and other 28 n/a 2 3 Cash
operating costs 163 n/a 250 225 Royalties and production taxes 8
n/a 8 6 Total cash costs 171 n/a 258 231 Reclamation and mine
closure costs 2 n/a 4 4 Total costs applicable to sales 173 n/a 262
235 Depreciation and amortization 37 n/a 32 68 Total production
costs $210 n/a $294 $303 Zarafshan, Ovacik, Uzbekistan Turkey Nine
Months Ended September 30, 2004 2003 2004 2003 Tons Mined (000 dry
short tons) n/a n/a 4,659 4,061 Tons Milled/Processed (000): Leach
5,929 6,116 n/a n/a Mill n/a n/a 331 435 Average Ore Grade (oz/ton)
0.043 0.043 0.320 0.335 Average Mill Recovery Rate n/a n/a 95.4%
93.6% Ounces Produced (000) 166.1 170.1 104.8 136.1 Equity Ounces
Produced (000) 166.1 170.1 104.8 136.1 Equity Ounces Sold (000)
170.9 171.9 110.0 137.7 Production Costs Per Ounce: Direct mining
and production costs $149 $146 $202 $120 Capitalized mining and
other 2 2 (23) (6) Cash operating costs 151 148 179 114 Royalties
and production taxes -- -- 14 12 Total cash costs 151 148 193 126
Reclamation and mine closure costs 2 2 2 1 Total costs applicable
to sales 153 150 195 127 Depreciation and amortization 47 46 143 82
Total production costs $200 $196 $338 $209 4. Base Metal Summary --
Batu Hijau and Golden Grove Three Months Ended Nine Months Ended
September 30, September 30, Batu Hijau 2004 (1) 2003 (1) 2004 (1)
2003 (1) Total tons mined (000) 59,595 60,928 171,907 174,275 Dry
tons processed (000) 13,213 12,300 39,819 36,951 Average copper
grade 0.88% 0.82% 0.78% 0.74% Average recovery rate 89.7% 90.7%
88.8% 89.2% Copper produced (000 lbs) 204,217 184,154 546,021
488,168 Equity copper produced (000 lbs) 114,872 103,587 307,137
274,595 Equity copper sold (000 lbs) 111,285 103,246 291,951
264,290 Realized copper price per pound $1.42 $0.84 $1.31 $0.80
Total cash cost per equity pound $0.56 $0.34 $0.55 $0.38 Noncash
cost per equity pound 0.11 0.11 0.13 0.13 Total production cost per
equity pound $0.67 $0.45 $0.68 $0.51 (1) 2003 cash and total cost
per pound have been presented pro forma on a co-product basis for
comparability to 2004. Three Months Ended Nine Months Ended
September 30, September 30, Golden Grove 2004 2003 2004 2003 Total
tons mined (000) 359 370 1,049 1,064 Dry tons processed (000) 354
346 1,028 1,045 Average copper grade 2.33% 4.68% 3.15% 4.84%
Average copper recovery rate 85.3% 92.9% 86.7% 92.0% Copper
produced (000 lbs) 7,062 21,891 26,799 46,991 Copper sold (000 lbs)
7,417 8,711 29,605 46,167 Realized copper price per pound $1.78
$0.77 $1.37 $0.79 Copper cash cost per pound $0.89 $0.47 $0.85
$0.54 Average zinc grade 8.96% 13.42% 9.93% 12.37% Average zinc
recovery rate 87.3% 90.0% 88.9% 90.5% Zinc produced (000 lbs)
29,622 12,518 88,699 87,394 Zinc sold (000 lbs) 27,325 9,504 92,443
63,132 Realized zinc price per pound $0.48 $0.39 $0.48 $0.36 Zinc
cash cost per pound $0.40 $0.05 $0.38 $0.22 Gold sold (000 ounces)
10.2 3.6 15.5 10.4 Silver sold (000 ounces) 543.9 391.0 857.6
1,165.8 5. Reconciliation of Costs Applicable to Sales to Total
Cash Costs Per Ounce and Per Pound, and Total Production Costs Per
Ounce and Per Pound (dollars in millions except per ounce amounts)
The total cash costs and total production costs per ounce or pound
are non-GAAP performance measures that are intended to provide
investors with information about the cash generating capacities and
profitability of Newmont's mining operations. Newmont's management
uses these measures for the same purpose and for monitoring the
performance of its mining operations. These measures differ from
measures determined in accordance with GAAP and should not be
considered in isolation or as a substitute for measures of
performance or liquidity determined in accordance with GAAP. These
measures were developed in conjunction with gold mining companies
associated with the Gold Institute in an effort to provide a level
of comparability; however, Newmont's measures may not be comparable
to similarly-titled measures of other companies La Total Three
Months Ended September 30, Golden Hollo- Herrad- North 2004 Nevada
Giant way Canada ura America Costs applicable to sales under GAAP
$170.8 $11.0 $4.9 $15.9 $2.9 $189.6 Minority interest -- -- -- --
-- -- Accretion expense (1.5) (0.1) -- (0.1) -- (1.6) Write-down of
inventories -- -- -- -- -- -- Purchased ore and other (5.6) -- --
-- -- (5.6) Total cash cost for per ounce calculations 163.7 10.9
4.9 15.8 2.9 182.4 Accretion expense and other 1.5 0.1 -- 0.1 --
1.6 Depreciation, depletion and amortization 29.0 2.6 1.2 3.8 1.7
34.5 Minority interest and other -- -- -- -- -- -- Total production
cost for per ounce calculations $194.2 $13.6 $6.1 $19.7 $4.6 $218.5
Equity ounces sold (000) 570.4 26.2 13.3 39.5 15.9 625.8 Equity
cash cost per ounce sold $287 $418 $376 $404 $179 $292 Equity total
production cost per ounce sold $340 $520 $465 $502 $285 $349 Three
Months Ended Kori South September 30, 2004 Yanacocha Kollo America
Pajingo Yandal Tanami Costs applicable to sales under GAAP $112.8
$1.3 $114.1 $13.7 $24.3 $46.4 Minority interest (56.5) (0.2) (56.7)
-- -- -- Accretion expense (0.8) (0.2) (1.0) (0.1) (0.3) (0.3)
Write-down of inventories -- -- -- (0.5) -- (1.4) Purchased ore and
other (0.4) -- (0.4) -- -- -- Total cash cost for per ounce
calculations 55.1 0.9 56.0 13.1 24.0 44.7 Accretion expense and
other 0.8 0.2 1.0 0.1 0.3 0.3 Depreciation, depletion and
amortization 49.0 0.3 49.3 6.8 4.9 9.0 Minority interest and other
(21.5) -- (21.5) -- -- -- Total production cost for per ounce
calculations $83.4 $1.4 $84.8 $20.0 $29.2 $54.0 Equity ounces sold
(000) 397.0 4.0 401.0 58.3 77.9 163.8 Equity cash cost per ounce
sold $139 $235 $140 $226 $308 $273 Equity total production cost per
ounce sold $210 $374 $211 $344 $375 $331 Three Months Ended
Australia/ September 30, New Batu 2004 Kalgoorlie Martha Zealand
Hijau Minahasa Indonesia Costs applicable to sales under GAAP $35.2
$7.8 $127.4 $31.4 $3.5 $34.9 Minority interest -- --- -- (14.2) --
(14.2) Accretion expense (0.4) (0.1) (1.2) (0.2) (0.3) (0.5)
Write-down of inventories -- -- (1.9) -- -- -- Purchased ore and
other -- -- -- 5.2 (0.2) 5.0 Total cash cost for per ounce
calculations 34.8 7.7 124.3 22.2 3.0 25.2 Accretion expense and
other 0.4 0.1 1.2 0.2 0.3 0.5 Depreciation, depletion and
amortization 4.4 3.8 28.9 7.8 (0.5) 7.3 Minority interest and other
-- -- -- (3.4) -- (3.4) Total production cost for per ounce
calculations $39.6 $11.6 $154.4 $26.8 $2.8 $29.6 Equity ounces sold
(000) 124.8 37.6 462.4 134.1 20.4 154.5 Equity cash cost per ounce
sold $278 $206 $269 $166 $146 $163 Equity total production cost per
ounce sold $317 $308 $334 $200 $140 $192 Three Months Ended Central
Asia Total September 30, 2004 Zarafshan Ovacik /Europe Gold Costs
applicable to sales under GAAP $7.7 $7.5 $15.2 $481.2 Minority
interest -- -- -- (70.9) Accretion expense (0.1) (0.1) (0.2) (4.5)
Write-down of inventories -- (1.3) (1.3) (3.2) Purchased ore and
other -- -- -- (1.0) Total cash cost for per ounce calculations 7.6
6.1 13.7 401.6 Accretion expense and other 0.1 0.1 0.2 4.5
Depreciation, depletion and amortization 2.3 5.9 8.2 128.2 Minority
interest and other -- -- -- (24.9) Total production cost for per
ounce calculations $10.0 $12.1 $22.1 $509.4 Equity ounces sold
(000) 46.1 34.7 80.8 1,724.5 Equity cash cost per ounce sold $165
$174 $169 $233 Equity total production cost per ounce sold $218
$346 $273 $296 Three Months Ended September 30, 2003 Golden La
Nevada Giant Holloway Canada Mesquite Herradura Costs applicable to
sales under GAAP $172.1 $10.6 $5.3 $15.9 $2.6 $3.1 Minority
interest -- -- -- -- -- -- Accretion expense (1.7) (0.3) (0.2)
(0.5) (0.1) (0.1) Write-down of inventories (1.9) -- -- -- -- --
Purchased ore and other (7.7) -- -- -- -- -- Total cash cost for
per ounce calculations 160.8 10.3 5.1 15.4 2.5 3.0 Accretion
expense and other 1.7 0.3 0.2 0.5 0.1 0.1 Depreciation, depletion
and amortization 37.1 3.4 1.4 4.8 1.1 0.8 Minority interest and
other -- -- -- -- -- -- Total production cost for per ounce
calculations $199.6 $14.0 $6.7 $20.7 $3.7 $3.9 Equity ounces sold
(000) 696.9 42.8 17.4 60.2 12.6 16.5 Equity cash cost per ounce
sold $240 $238 $297 $255 $196 $181 Equity total production cost per
ounce sold $298 $328 $388 $345 $289 $231 Three Months Ended
September 30, North Kori South 2003 America Yanacocha Kollo America
Pajingo Yandal Costs applicable to sales under GAAP $193.7 $105.3
$10.8 $116.1 $11.7 $41.7 Minority interest -- (53.3) (1.3) (54.6)
-- -- Accretion expense (2.4) (0.8) (0.7) (1.5) -- (0.5) Write-down
of inventories (1.9) -- -- -- -- (0.3) Purchased ore and other
(7.7) -- -- -- -- -- Total cash cost for per ounce calculations
181.7 51.2 8.8 60.0 11.7 40.9 Accretion expense and other 2.4 0.8
0.7 1.5 (0.1) 0.4 Depreciation, depletion and amortization 43.8
48.5 1.7 50.2 8.2 12.2 Minority interest and other -- (21.2) (0.2)
(21.4) -- -- Total production cost for per ounce calculations
$227.9 $79.3 $11.0 $90.3 $19.8 $53.5 Equity ounces sold (000) 786.2
451.2 43.8 495.0 90.9 151.8 Equity cash cost per ounce sold $239
$113 $199 $121 $128 $269 Equity total production cost per ounce
sold $300 $175 $250 $182 $218 $352 Three Months Ended Australia/
September 30, New 2003 Tanami Kalgoorlie Martha Zealand Minahasa
Zarafshan Costs applicable to sales under GAAP $37.2 $31.3 $5.8
$127.7 $4.6 $7.7 Minority interest 0.1 -- 0.1 0.2 -- -- Accretion
expense (0.3) (0.3) (0.1) (1.2) (0.1) -- Write-down of inventories
-- -- -- (0.3) -- -- Purchased ore and other -- -- -- -- (0.3) --
Total cash cost for per ounce calculations 37.0 31.0 5.8 126.4 4.2
7.7 Accretion expense and other -- 0.3 -- 0.6 0.1 -- Depreciation,
depletion and amortization 8.8 2.3 3.3 34.8 2.4 2.5 Minority
interest and other -- -- -- -- (0.1) -- Total production cost for
per ounce calculations $45.8 $33.6 $9.1 $161.8 $6.6 $10.2 Equity
ounces sold (000) 153.1 116.0 26.2 538.0 23.1 50.2 Equity cash cost
per ounce sold $241 $266 $217 $234 $182 $153 Equity total
production cost per ounce sold $300 $289 $348 $301 $285 $204
Central Three Months Ended September 30, 2003 Ovacik Asia/Europe
Total Gold Costs applicable to sales under GAAP $6.7 $14.4 $456.5
Minority interest -- -- (54.4) Accretion expense (0.1) (0.1) (5.3)
Write-down of inventories -- -- (2.2) Purchased ore and other -- --
(8.0) Total cash cost for per ounce calculations 6.6 14.3 386.6
Accretion expense and other 0.1 0.1 4.7 Depreciation, depletion and
amortization 4.2 6.7 137.9 Minority interest and other -- -- (21.5)
Total production cost for per ounce calculations $10.9 $21.1 $507.7
Equity ounces sold (000) 51.5 101.7 1,944.0 Equity cash cost per
ounce sold $128 $141 $201 Equity total production cost per ounce
sold $211 $208 $265 La Nine Months Ended September Golden Herrad-
North 30, 2004 Nevada Giant Holloway Canada ura America Costs
applicable to sales under GAAP $525.6 $34.8 $17.9 $52.7 $8.1 $586.4
Minority interest -- -- -- -- -- -- Accretion expense (4.2) (0.2)
-- (0.2) (0.1) (4.5) Write-down of inventories -- -- -- -- -- --
Purchased ore and other (26.5) 0.1 0.1 0.2 -- (26.3) Total cash
cost for per ounce calculations 494.9 34.7 18.0 52.7 8.0 555.6
Accretion expense and other 4.2 0.2 -- 0.2 0.1 4.5 Depreciation,
depletion and amortization 95.7 9.2 4.5 13.7 3.9 113.3 Minority
interest and other -- -- -- -- -- -- Total production cost for per
ounce calculations $594.8 $44.1 $22.5 $66.6 $12.0 $673.4 Equity
ounces sold (000) 1,747.8 118.4 48.4 166.8 51.4 1,966.0 Equity cash
cost per ounce sold $283 $294 $370 $316 $156 $283 Equity total
production cost per ounce sold $340 $373 $465 $400 $233 $343 Nine
Months Ended Kori South September 30, 2004 Yanacocha Kollo America
Pajingo Yandal Tanami Costs applicable to sales under GAAP $320.7
$8.3 $329.0 $43.1 $82.8 $140.7 Minority interest (161.5) (1.0)
(162.5) -- -- --- Accretion expense (2.3) (0.7) (3.0) (0.2) (1.4)
(0.9) Write-down of inventories -- (2.1) (2.1) (1.0) (0.2) (4.1)
Purchased ore and other (0.5) -- (0.5) -- -- -- Total cash cost for
per ounce calculations 156.4 4.5 160.9 41.9 81.2 135.7 Accretion
expense and other 2.3 0.7 3.0 0.1 1.4 0.7 Depreciation, depletion
and amortization 151.2 2.0 153.2 22.0 21.6 29.1 Minority interest
and other (68.2) (0.2) (68.4) -- -- -- Total production cost for
per ounce calculations $241.7 $7.0 $248.7 $64.0 $104.2 $165.5
Equity ounces sold (000) 1,125.0 16.8 1,141.8 182.0 291.0 505.7
Equity cash cost per ounce sold $139 $272 $141 $230 $279 $268
Equity total production cost per ounce sold $215 $416 $218 $351
$358 $327 Australia Nine Months Ended /New Batu Mina- Indo-
September 30, 2004 Kalgoorlie Martha Zealand Hijau hasa nesia Costs
applicable to sales under GAAP $103.9 $19.9 $390.4 $72.3 $19.8
$92.1 Minority interest -- -- -- (32.7) -- (32.7) Accretion expense
(1.3) (0.3) (4.1) (0.4) (0.3) (0.7) Write-down of inventories -- --
(5.3) -- (0.2) (0.2) Purchased ore and other -- -- -- 12.5 (1.2)
11.3 Total cash cost for per ounce calculations 102.6 19.6 381.0
51.7 18.1 69.8 Accretion expense and other 1.3 0.3 3.8 0.4 0.3 0.7
Depreciation, depletion and amortization 11.8 10.0 94.5 20.3 2.4
22.7 Minority interest and other -- -- -- (8.9) (0.1) (9.0) Total
production cost for per ounce calculations $115.7 $29.9 $479.3
$63.5 $20.7 $84.2 Equity ounces sold (000) 345.3 90.3 1,414.3 301.7
70.2 371.9 Equity cash cost per ounce sold $297 $217 $269 $171 $258
$188 Equity total production cost per ounce sold $335 $331 $339
$210 $294 $226 Central Nine Months Ended Asia/ Total September 30,
2004 Zarafsha Ovacik Europe Gold Costs applicable to sales under
GAAP $26.2 $22.8 $49.0 $1,446.9 Minority interest -- -- -- (195.2)
Accretion expense (0.3) (0.3) (0.6) (12.9) Write-down of
inventories -- (1.3) (1.3) (8.9) Purchased ore and other (0.1) --
(0.1) (15.6) Total cash cost for per ounce calculations 25.8 21.2
47.0 1,214.3 Accretion expense and other 0.3 0.2 0.5 12.5
Depreciation, depletion and amortization 8.1 15.7 23.8 407.5
Minority interest and other -- -- -- (77.4) Total production cost
for per ounce calculations $34.2 $37.1 $71.3 $1,556.9 Equity ounces
sold (000) 170.9 110.0 280.9 5,174.9 Equity cash cost per ounce
sold $151 $193 $168 $235 Equity total production cost per ounce
sold $200 $338 $254 $301 La Nine Months Ended Golden Herrad-
September 30, 2003 Nevada Giant Holloway Canada Mesquite ura Costs
applicable to sales under GAAP $456.0 $41.0 $15.4 $56.4 $7.6 $8.8
Minority interest -- -- -- -- -- -- Accretion expense (4.8) (1.2)
(0.4) (1.6) (0.2) (0.1) Write-down of inventories (2.9) -- -- -- --
-- Purchased ore and other (10.9) -- -- -- -- -- Total cash cost
for per ounce calculations 437.4 39.8 15.0 54.8 7.4 8.7 Accretion
expense and other 4.8 1.2 0.4 1.6 0.2 0.1 Depreciation, depletion
and amortization 103.4 15.0 3.8 18.8 3.6 2.5 Minority interest and
other -- -- -- -- -- -- Total production cost for per ounce
calculations $545.6 $56.0 $19.2 $75.2 $11.2 $11.3 Equity ounces
sold (000) 1,865.1 161.8 50.1 211.9 42.8 50.9 Equity cash cost per
ounce sold $239 $246 $300 $259 $172 $171 Equity total production
cost per ounce sold $299 $347 $384 $355 $261 $222 Nine Months Ended
North Kori South September 30, 2003 America Yanacocha Kollo America
Pajingo Yandal Costs applicable to sales under GAAP $528.8 $274.3
$32.6 $306.9 $32.5 $126.8 Minority interest -- (138.7) (3.9)
(142.6) -- -- Accretion expense (6.7) (2.5) (1.8) (4.3) (0.1) (1.6)
Write-down of inventories (2.9) -- -- -- -- (2.7) Purchased ore and
other (10.9) -- -- -- -- -- Total cash cost for per ounce
calculations 508.3 133.1 26.9 160.0 32.4 122.5 Accretion expense
and other 6.7 2.5 1.8 4.3 (0.2) 1.5 Depreciation, depletion and
amortization 128.3 124.4 5.6 130.0 20.7 30.2 Minority interest and
other -- (54.3) (0.7) (55.0) -- -- Total production cost for per
ounce calculations $643.3 $205.7 $33.6 $239.3 $52.9 $154.2 Equity
ounces sold (000) 2,170.7 1,130.0 144.5 1,274.5 258.7 433.0 Equity
cash cost per ounce sold $238 $118 $186 $125 $125 $283 Equity total
production cost per ounce sold $302 $182 $232 $188 $205 $356
Australia Nine Months Ended /New September 30, 2003 Tanami
Kalgoorlie Martha Zealand Minahasa Zarafshan Costs applicable to
sales under GAAP $114.6 $83.4 $19.7 $377.0 $21.7 $25.7 Minority
interest (4.2) -- (0.3) (4.5) -- -- Accretion expense (0.8) (1.1)
(0.3) (3.9) (0.4) (0.2) Write-down of inventories (2.0) (1.0) (2.6)
(8.3) (1.3) -- Purchased ore and other -- -- -- -- (1.3) -- Total
cash cost for per ounce calculations 107.6 81.3 16.5 360.3 18.7
25.5 Accretion expense and other 0.1 1.1 0.1 2.6 0.4 0.2
Depreciation, depletion and amortization 27.5 6.9 8.2 93.5 5.8 8.0
Minority interest and other (1.0) -- (0.1) (1.1) (0.3) -- Total
production cost for per ounce calculations $134.2 $89.3 $24.7
$455.3 $24.6 $33.7 Equity ounces sold (000) 449.3 309.2 73.5
1,523.7 81.2 171.9 Equity cash cost per ounce sold $239 $263 $225
$236 $231 $148 Equity total production cost per ounce sold $299
$289 $338 $299 $303 $196 Central Nine Months Ended September 30,
2003 Ovacik Asia/Europe Total Gold Costs applicable to sales under
GAAP $17.6 $43.3 $1,277.7 Minority interest -- -- (147.1) Accretion
expense (0.2) (0.4) (15.7) Write-down of inventories -- -- (12.5)
Purchased ore and other -- -- (12.2) Total cash cost for per ounce
calculations 17.4 42.9 1,090.2 Accretion expense and other 0.1 0.3
14.3 Depreciation, depletion and amortization 11.4 19.4 377.0
Minority interest and other -- -- (56.4) Total production cost for
per ounce calculations $28.9 $62.6 $1,425.1 Equity ounces sold
(000) 137.7 309.6 5,359.7 Equity cash cost per ounce sold $126 $138
$205 Equity total production cost per ounce sold $209 $202 $268 6.
Reconciliation of Costs Applicable to Sales to Total Cash Cost Per
Ounce, and Total Production Cost Per Ounce (dollars in millions
except per ounce amounts) Three Months Ended Nine Months Ended
September 30, 2003 September 30, 2003 Batu Batu Hijau Mina- Indo-
Hijau Mina- Indo- (1) hasa nesia (1) hasa nesia Costs applicable to
sales under GAAP $13.4 $4.6 $18.0 $38.1 $21.7 $59.8 Minority
interest (0.1) - (0.1) (5.2) - (5.2) Accretion expense (0.3) (0.1)
(0.4) (1.0) (0.4) (1.4) Write-down of inventories - - - - (1.3)
(1.3) Purchased ore and other 5.0 (0.3) 4.7 12.1 (1.3) 10.8 Total
cash cost for per ounce calculations 18.0 4.2 22.2 44.0 18.7 62.7
Accretion expense and other 0.3 0.1 0.4 1.0 0.4 1.4 Depreciation,
depletion and amortization 9.8 2.4 12.2 25.4 5.8 31.2 Minority
interest and other (4.3) (0.1) (4.4) (11.1) (0.3) (11.4) Total
production cost for per ounce calculations $23.8 $6.6 $30.4 $59.3
$24.6 $83.9 Equity ounces sold (000) 116.5 23.1 139.6 262.7 81.2
343.9 Equity cash cost per ounce sold $154 $182 $159 $168 $231 $182
Equity total production cost per ounce sold $204 $285 $217 $226
$303 $244 (1) Cash and total production cost per ounce presented on
a pro forma co-product basis. 7. Reconciliation of Batu Hijau Costs
Applicable to Sales to Total Cash Cost Per Equity Pound, and Total
Production Cost Per Equity Pound (dollars in millions except per
pound amounts) Three Months Ended Nine Months Ended Batu Hijau
September 30, September 30, 2004 2003 (1) 2004 2003 (1) Costs
applicable to sales per financial statements $86.9 $25.4 $221.5
$86.5 Minority interest (39.4) 0.6 (100.4) (11.9) Accretion expense
(0.4) (0.6) (1.3) (2.3) Smelting and refining 14.8 10.0 39.8 27.5
Total cash cost for per pound calculation 61.9 35.4 159.6 99.8
Accretion expense 0.4 0.6 1.3 2.4 Depreciation, depletion and
amortization 22.3 19.0 64.9 57.6 Minority interest (9.7) (8.3)
(28.4) (25.2) Total production cost for per pound calculation $74.9
$46.7 $197.4 $134.6 Equity copper sold (000 lbs) 111,285 103,246
291,951 264,290 Total cash cost per equity pound $0.56 $0.34 $0.55
$0.38 Total production cost per equity pound $0.67 $0.45 $0.68
$0.51 (1) 2003 cash and total production cost per pound presented
on a pro forma co-product basis. 8. Reconciliation of Golden Grove
Costs Applicable to Sales to Total Cash Cost Per Pound, and Total
Production Cost Per Equity Pound (dollars in millions except per
pound amounts) Three Months Ended September 30, 2004 2003 Total
Copper Zinc Total Copper Zinc Costs applicable to sales per
financial statements $14.5 $8.3 $6.2 $4.7 $4.3 $0.4 Accretion
expense (0.1) - (0.1) (0.1) - (0.1) Write-down inventories (4.5)
(1.5) (3.0) (0.3) (1.1) 0.8 Smelting and refining and purchased
concentrates 7.8 (0.2) 8.0 0.2 0.9 (0.7) Total cash cost for per
pound calculation $17.7 $6.6 $11.1 $4.5 $4.1 $0.4 Total sold (000
lbs) n/a 7,417 27,325 n/a 8,711 9,504 Total cash cost per pound
sold n/a $0.89 $0.40 n/a $0.47 $0.05 Nine Months Ended September
30, 2004 2003 Total Copper Zinc Total Copper Zinc Costs applicable
to sales per financial statements $45.8 $25.3 $20.5 $29.7 $22.1
$7.6 Accretion expense (0.4) (0.2) (0.2) (0.3) (0.2) (0.1)
Write-down inventories (7.9) (2.3) (5.6) (7.1) (4.0) (3.1) Smelting
and refining and purchased concentrates 23.1 2.4 20.7 16.5 7.2 9.3
Total cash cost for per pound calculation $60.6 $25.2 $35.4 $38.8
$25.1 $13.7 Total sold (000 lbs) n/a 29,605 92,443 n/a 46,167
63,132 Total cash cost per pound sold n/a $0.85 $0.38 n/a $0.54
$0.22 9. Reconciliation of Total Newmont Costs Applicable to Sales
to Total Copper Cash Cost Per Equity Pounds, (dollars in millions
except per pound amounts) Three Months Ended Nine Months Ended
September 30, September 30, 2004 2003 (1) 2004 2003 (1) Costs
applicable to sales per financial statements $95.2 $29.7 $246.8
$108.6 Minority interest (39.4) 0.6 (100.4) (11.9) Accretion
expense (0.4) (0.6) (1.5) (2.5) Write-down inventories (1.5) (1.1)
(2.3) - Smelting and refining 14.6 10.9 42.2 34.7 Total cash cost
for per pound calculation $68.5 $39.5 $184.8 $128.9 Equity copper
sold (000 lbs) 118,702 111,957 321,556 310,457 Total cash cost per
equity pound $0.58 $0.35 $0.58 $0.40 (1) 2003 total cash cost per
equity pound presented on a pro forma co-product basis. 10. Gold
Hedge Position -- Current Maturity Summary (1) (000 ounces) Gold
Put Price Capped Option Contracts Contracts Years Ozs Price(2) Ozs
Price(2) 2004 48 $293 -- -- 2005 205 $292 500 $350 2006 100 $338 --
-- 2007 20 $397 -- -- 2008 -- -- 1,000 $384 2009 -- -- 600 $381
2010 -- -- -- -- 2011 -- -- 250 $392 Total/Average 373 $310 2,350
$377 The mark-to-market value of the gold put option contracts was
negative $9.5 million at September 30, 2004. Notes: (1) For more
detailed descriptions, definitions and explanations, refer to the
Company's Annual Report on Form 10-K for the year ended December
31, 2003. (2) Prices quoted are gross contract prices, which
represent the gross cash flow per ounce of each contract. Not
included in these prices are the additional cash outflows
associated with borrowing gold over the life of the contract where
the contracts are floating in nature. The rate at which gold is
borrowed is determined over the life of the contract based on the
prevailing market gold lease rate for the time period that the
borrowing is fixed. The borrowing can be fixed for varying periods
over the life of the contract. The Company's third quarter earnings
conference call and web cast presentation will be held on
Wednesday, October 27, 2004 beginning at 4:00 p.m. Eastern Time
(2:00 p.m. Mountain Time). To participate: Dial-In Number: (773)
756-4602 Leader: Randy Engel Password: Newmont The conference call
will also be simultaneously carried on our web site at
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) statements regarding future
earnings, and the sensitivity of earnings to the gold and other
metals prices; (ii) estimates of future gold and other metals
production and sales; (iii) estimates of future cash costs and
total production costs; (iv) statements of future cash flows, and
the sensitivity of net income and cash flows to the gold and other
metals prices; (v) the sensitivity of cash costs to the Australian
dollars exchange rate; (vi) estimates of future capital
expenditures, expenses and tax rates; (vii) estimates regarding
timing of future production or closure activities; (viii)
statements regarding future exploration results and the replacement
of reserves; (ix) statements regarding future asset sales or
rationalization efforts; and (x) estimates of future royalty
revenues. Where the Company expresses or implies an expectation or
belief as to future events or results, such expectation or belief
is expressed in good faith and believed to have a reasonable basis.
However, forward- looking statements are subject to risks,
uncertainties and other factors, which could cause actual results
to differ materially from future results expressed, projected or
implied by such forward-looking statements. Such risks include, but
are not limited to, gold and other metals price volatility,
currency fluctuations, increased production costs and variances in
ore grade or recovery rates from those assumed in mining plans,
political and operational risks in the countries in which we
operate, and governmental regulation and judicial outcomes. For a
more detailed discussion of such risks and other factors, see the
Company's 2003 Annual Report on Form 10-K, which is on file with
the Securities and Exchange Commission, as well as the Company's
other SEC filings. The Company does not undertake any obligation to
release publicly revisions to any "forward-looking statement," to
reflect events or circumstances after the date of this news
release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
PRNewswire -- Oct. 27 DATASOURCE: Newmont Mining Corporation Web
site: http://www.newmont.com/
Copyright