/FIRST AND FINAL ADD -- LAW063 -- Newmont Announces First Quarter Net Income of $84 Million ($0.19 per share)/
April 27 2005 - 8:00AM
PR Newswire (US)
/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