NEM Newmont Corporation

Generated $183 million in cash flow from continuing operations on $1.8 billion in revenues

Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) today reported first quarter 2014 financial and operating results.

“We are building on the momentum we established in 2013 with strong cost and production performance in the first quarter of 2014,” said Gary Goldberg, President and Chief Executive Officer. “Our team drove down all-in sustaining costs by $82 million compared to the prior year quarter through sustainable cost and efficiency improvements. We are also delivering on our commitment to improve mining fundamentals, which led to a 40 percent increase in gold production at Tanami compared to the prior year quarter. We are confident we can maintain this trajectory as the year progresses, as evidenced by our updated outlook for lower costs and higher production for Africa.”

Highlights for the first quarter

• Achieved reported net income attributable to shareholders from continuing operations of $117 million, or $0.23 per basic share, and adjusted net income1 of $108 million, or $0.22 per basic share;
• Generated cash from continuing operations of $183 million;
• Generated cost savings of $82 million in gold all-in sustaining costs2 (“AISC”), which equates to $1,034 per ounce, down 8 percent from the prior year quarter;
• Realized costs applicable to sales (“CAS”) of $751 per ounce of gold and $2.71 per pound of copper, a decrease of 1 percent and an increase of 19 percent, respectively, over first quarter last year;
• Delivered 1.2 million ounces and 24 thousand tonnes of attributable gold and copper production, with higher gold production coming from our Australia/New Zealand and Africa operations;
• Improved AISC outlook3 by 13 percent, and production outlook by 2 percent in Africa; and
• Declared a second quarter dividend of $0.025 per share in accordance with the Company’s gold price-linked dividend policy4.

First Quarter Financial Results

The Company reported attributable net income from continuing operations of $117 million, or $0.23 per basic share, compared with $314 million, or $0.63 per share in 2013. The Company reported adjusted net income of $108 million, or $0.22 per basic share, compared with $353 million, or $0.70 per basic share a year earlier. Improved production and stable operating costs relative to the prior year quarter were offset by declines in average realized gold and copper prices of approximately 21 percent and 20 percent, respectively. Reduced spending on exploration, advanced projects, and sustaining capital also led to $82 million in lower gold AISC this quarter.

Summary of first quarter 2014 financial results compared with 2013:

• Generated revenue of $1.8 billion compared with $2.2 billion in 2013;
• Gold and copper AISC of $1,034 per ounce and $3.67 per pound, respectively, compared with $1,121 per ounce and $3.38 per pound, respectively;
• Average realized gold and copper price of $1,293 per ounce and $2.50 per pound, respectively, compared with $1,631 per ounce and $3.12 per pound, respectively;
• Gold and copper CAS of $751 per ounce and $2.71 per pound, respectively, compared with $760 per ounce and $2.27 per pound, respectively; and
• Cash flow from continuing operations of $183 million compared with $439 million.

First Quarter Operating Results

  Summary Production Table (Attributable production, Koz and kt) Region     Q1 2014     Q1 2013     Change North America     405     436     -7% South America     122     162     -25% Australia/New Zealand     450     435     3% Indonesia     8     7     14% Africa     225     125     80% Total Gold     1,210     1,165     4% North America     6     3     100% Australia/New Zealand     8     8     0% Indonesia     10     9     11% Total Copper     24     20     20%     Summary CAS Table (Consolidated $/oz and $/lb) Region     Q1 2014     Q1 2013     Change North America     $726     $766     -5% South America     $1,075     $576     87% Australia/New Zealand     $783     $922     -15% Indonesia     $1,283     $993     29% Africa     $428     $555     -23% Total Gold CAS     $751     $760     -1% North America     $2.39     $3.20     -25% Australia/New Zealand     $2.63     $2.35     12% Indonesia     $2.99     $2.05     46% Total Copper CAS     $2.71     $2.27     19%     Summary All-in Sustaining Costs Table (Consolidated $/oz and $/lb) Region     Q1 2014     Q1 2013     Change North America     $958     $1,027     -7% South America     $1,403     $885     59% Australia/New Zealand     $942     $1,136     -17% Indonesia     $2,167     $2,000     8% Africa     $616     $1,126     -45% Total Gold AISC     $1,034     $1,121     -8% North America     $2.55     $3.75     -32% Australia/New Zealand     $3.27     $2.95     11% Indonesia     $4.63     $3.70     25% Total Copper AISC     $3.67     $3.38     9%            

Attributable gold production increased approximately 4 percent from 2013 levels due to production from the new Akyem operation, as well as higher production from Australian operations, partially offset by lower production from Peru as a result of the planned stripping campaign at Yanacocha. Attributable copper tonnes produced were 20 percent higher with the contribution from the Phoenix Copper Leach operation in Nevada. Gold CAS remained stable over last year. Gold AISC was reduced by 8 percent, primarily due to cost and efficiency improvements.

First Quarter Operating Results by Region

North America

Attributable gold production at Carlin decreased 1 percent from the prior year quarter, primarily due to planned lower grades at Mill 6. CAS per ounce increased 4 percent due to planned stockpile and leach pad inventory adjustments, partially offset by lower operating costs.

Attributable gold production at Phoenix increased 4 percent from the prior year quarter due to slightly higher grade at the Phoenix mill. Copper pounds produced increased 71 percent due to production from the Phoenix Copper Leach operation, which entered commercial production in the fourth quarter of 2013. Gold CAS per ounce decreased 48 percent due to higher ounces sold and a higher allocation of costs to copper with the copper leach facility in production. Copper CAS per pound decreased 25 percent due to higher copper pounds sold as a result of the new copper leach facility.

Attributable gold production at Twin Creeks decreased 3 percent from the prior year quarter due to lower production following the sale of Midas, partially offset by higher mill throughput at the Autoclave. CAS per ounce decreased 1 percent due to more ounces sold.

Attributable gold production at La Herradura decreased 49 percent from the prior year quarter due to the suspension of their explosives permit. CAS per ounce decreased 6 percent due to a decrease in stripping with the ramp up of production after receiving the explosives permit at the end of February partially offset by lower ounces sold.

Gold AISC in North America was $958 per ounce, a decrease of 7 percent over the prior year quarter due to realization of operating efficiencies, reduced exploration and advanced project spend and reduced royalties. Copper AISC was $2.55 per pound, a decrease of 32 percent over prior year quarter due to increased copper production from Phoenix Copper Leach.

South America

Attributable gold production at Yanacocha decreased 25 percent from the prior year quarter mainly due to the planned stripping phase at the Tapado Oeste pit. Production is expected to increase in the second half of 2014 as mining returns to higher grade ore at Tapado Oeste. CAS per ounce increased 87 percent from the prior year quarter primarily due to higher direct mining costs associated with the current stripping campaign.

Gold AISC in South America was $1,403 per ounce, an increase of 59 percent over the prior year quarter due to higher production costs and lower volume resulting from the stripping campaign.

Australia/New Zealand

Attributable gold production at Boddington decreased 2 percent from the prior year quarter, primarily due to lower grades. Copper production was in line with the prior year quarter. Boddington realized record-setting throughput levels this quarter due to sustainable process improvements implemented through the Full Potential program. These benefits were offset by the lower grades. Gold CAS decreased 3 percent per ounce due to a combination of lower mill maintenance costs and favorable foreign exchange rates. Copper CAS increased 12 percent per pound, primarily due to planned stockpile inventory adjustments.

Attributable gold production at Tanami increased 40 percent from the prior year quarter, primarily as a result of higher grades from the Auron ore body and lower mining dilution from improved mining practices. CAS per ounce decreased by 45 percent due to higher production coupled with lower operating costs and favorable foreign exchange rates.

Attributable gold production at Jundee decreased 17 percent from the prior year quarter primarily as a result of lower ore grade milled. CAS per ounce decreased by 6 percent as a result of lower underground mining costs and favorable foreign exchange rates, partially offset by lower production.

Attributable gold production at Waihi decreased 10 percent from the prior year quarter primarily as a result of lower ore grade milled and a build-up of gold in circuit inventory, partially offset by higher throughput. CAS per ounce decreased by 18 percent as a result of lower underground mining costs.

Attributable gold production at KCGM increased 15 percent from the prior year quarter primarily as a result of higher grades and tons milled. CAS per ounce decreased by 17 percent as a result of the higher production.

Gold AISC in Australia/New Zealand was $942 per ounce, a decrease of 17 percent over the prior year quarter due to lower production costs, exploration costs, and sustaining capital spend. Copper AISC was $3.27 per pound, an increase of 11 percent over the prior year due to higher CAS per pound.

Indonesia

Attributable gold and copper production at Batu Hijau increased 14 percent and 11 percent, respectively, from the prior year quarter due to higher ore grade and recovery for both gold and copper. However, the Company was unable to export approximately 2 thousand attributable ounces of gold and 2.5 thousand attributable tonnes of copper as a result of new export regulations imposed in January 2014 by the Indonesian government.

CAS increased 29 percent per ounce of gold and 46 percent per pound of copper, due to the planned stockpile inventory adjustments and lower ounces and pounds sold.

Gold AISC in Indonesia was $2,167 per ounce, an increase of 8 percent over the prior year quarter and copper AISC was $4.63 per pound, an increase of 25 percent over the prior year quarter, due to lower ounces and pounds sold.

Africa

Attributable gold production at Ahafo decreased 16 percent from the prior year quarter due to lower processed ore grade. CAS per ounce was in line with the prior year. The new Akyem operation is performing well, providing 120,000 ounces of production at CAS of $311 per ounce.

Gold AISC in Africa was $616 per ounce this quarter, a decrease of 45 percent over the prior year quarter due to new production at Akyem and lower exploration and advanced project expense and sustaining capital.

Outlook Update

The Company continues to expect total attributable gold production of between 4.6 to 4.9 million ounces at CAS of $740 to $790 per ounce and AISC of $1,075 to $1,175 per ounce. The Company also continues to expect total copper production of between 95 to 110 thousand tonnes at CAS of $2.00 to $2.25 per pound and AISC of $2.75 to $2.95 per pound. As a result of mine plan optimization at the Ahafo operation in Africa, the Company is increasing production outlook from between 785,000 to 850,000 ounces to between 790,000 to 870,000 ounces for the region. Both Ahafo and Akyem are realizing lower costs and the Company is reducing its Africa regional CAS from $575 to $625 per ounce to $510 to $555 per ounce, and AISC from $795 to $865 per ounce to $690 to $755 per ounce for 2014. The Company also announced a decrease in expected interest expense of $25 million. Offsetting that, the 2014 tax rate is now expected to be between 37 and 40 percent, primarily due to the tax treatment of the sale of Midas and higher taxes in Peru.

Balance Sheet and Financial Flexibility

Cash from continuing operations was $183 million. The Company also received cash of $57 million from the sale of its Midas operation and $25 million from the sale of its investment in Paladin Energy. At quarter end, the Company held $1.5 billion of consolidated cash on its balance sheet.

The Company also recently closed on a term loan of $575 million. The term loan provides for a single, delayed drawdown through July 15, 2014, with a maturity date five years from drawdown. The loan is intended to retire the $575 million of convertible debt maturing July 2014. The Company now expects a lower 2014 interest expense of between $325 to $350 million. Concurrent with closing the term loan, the Company also renewed its $3.0 billion corporate revolving credit facility, extending the maturity date two years to March 31, 2019. At March 31, there were no outstanding borrowings under the facility.

Capital Update

Total capital spent in the first quarter was $235 million. Capital expenditures in North America during the first quarter of 2014 were primarily related to the development of the Turf Leeville vent shaft in Nevada. Capital expenditures in South America, Australia and New Zealand, Indonesia, and Africa were primarily for sustaining capital.

The Company continues to manage its wider project portfolio to maintain flexibility to address the development risks associated with its projects including permitting, local community and government support, engineering and procurement availability, technical issues, escalating costs and other associated risks that could adversely impact the timing and costs of certain opportunities.

Indonesia Update

In January 2014, the Indonesian government issued new regulations for the export of copper concentrate that contain potentially restrictive conditions for obtaining an export permit, as well as a significant, progressive export duty. While the 2009 mining law preserves the validity of PT Newmont Nusa Tenggara’s (“PTNNT”, the entity operating the Batu Hijau mine) Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies), the Indonesian government has stated its intention to enforce the new regulations on PTNNT’s operations and has not yet recognized PTNNT’s rights to export copper concentrate and only pay the taxes, duties, and levies specified in the Contract of Work. The Company believes that these new 2014 regulations conflict with the Contract of Work. Although PTNNT is continuing to engage with government officials in Indonesia in an effort to resolve this issue and gain clarity on implementation of the new regulations, while also considering other remedies, including possible legal action, the Company can make no assurances that the new regulations will not impact operations and/or outlook. In April 2014, PTNNT received the required approval as a registered exporter from the Ministry of Trade and continues working through the process and engaging with the government to secure the newly required export permit. At this time, operations continue at Batu Hijau. However, to the extent there are continued delays in obtaining approvals for 2014 exports, PTNNT will implement contingency plans to scale back production taking into consideration copper concentrate storage capacity and in-country smelter availability, which would impact the Company's ability to achieve its outlook. For a discussion of this and other factors which could impact future financial performance and operating results in Indonesia, see Item 1A, under the heading “Risk Factors,” of the Company’s Form 10-K, filed on February 21, 2014.

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1 Non-GAAP measure. See end of this release for reconciliation to net income.

2 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

3 Outlook constitutes forward-looking statements, which are subject to risk and uncertainties. See Cautionary note at the end of this release.

4 Such policy is non-binding; declaration of future dividends remains subject to approval and discretion of the Board of Directors.

Operating Results Table

First Quarter Consolidated and Attributable Production and Consolidated CAS and AISC Results

Region  

Q1 2014ConsolidatedProduction

 

Q1 2014AttributableProduction

 

Q1 2014ConsolidatedCAS

 

Q1 2014ConsolidatedAISCa

  (Kozs, Kt)   (Kozs, Kt)   ($/oz, $/lb)   ($/oz, $/lb) Carlin 228 228 $842 $956 Phoenixb 53 53 $625 $818 Twin Creeksc 96 96 $536 $874 La Herradurad   28   28   $671   $1,087 North America   405   405   $726   $958 Yanacochae 208 107 $1,075 $1,364 La Zanjaf   n/a   15   n/a   n/a South America   208   122   $1,075   $1,403 Boddington 174 174 $851 $970 Tanami 84 84 $681 $963 Jundee 63 63 $667 $841 Waihi 27 27 $753 $800 KCGMd 90 90 $839 $880 Duketonf   n/a   12   n/a   n/a Australia/New Zealand   438   450   $783   $942 Batu Hijau, Indonesiae   16   8   $1,283   $2,167 Ahafo 105 105 $554 $864 Akyem   120   120   $311   $361 Africa   225   225   $428   $616 Total Gold   1,292  

1,210

  $751   $1,034 Phoenix 6 6 $2.39 $2.55 Boddington 8 8 $2.63 $3.27 Batu Hijaue   21   10   $2.99   $4.63 Total Copper   35   24   $2.71   $3.67

aAll-in sustaining cost (“AISC”) is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.

bIncludes Lone Tree operations.

cIncludes GTRJV operations.

dBoth consolidated and attributable production are shown on a pro-rata basis with a 44% ownership interest for La Herradura and a 50% ownership for KCGM.

eConsolidated production for Yanacocha and Batu Hijau are presented on a total production basis for the mine site; whereas attributable production represents a 51.35% ownership interest for Yanacocha, and a 48.5% interest for Batu Hijau.

fLa Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.25% ownership interest in Duketon.  

Outlook Tables

2014 Consolidated and Attributable Production, CAS, AISC, and Capital Outlooka

Region  

2014ConsolidatedProduction

 

2014AttributableProduction

 

2014ConsolidatedCAS

 

2014 All-inSustainingCostsb

 

2014ConsolidatedCapital

  (Kozs, Kt)   (Kozs, kt)   ($/oz, $/lb)   ($/oz, $/t)  

Expenditures($M)

Carlin 830 - 910 830 - 910 $790 - $860 $275 - $300 Phoenixc 195 - 215 195 - 215 $655 - $715 $30 - $40 Twin Creeksd 330 - 360 330 - 360 $550 - $600 $110 - $130 La Herradurae 185 - 200 185 - 200 $800 - $875 $90 - $100 Other North America                   $20 - $30 North America   1,550 - 1,650   1,550 - 1,650   $720 - $790   $1,045 - $1,135   $540 - $600 Yanacochaf 895 - 985 460 - 500 $725 - $790 $180 - $200 La Zanjag 50 - 60 Other South America                   $25 - $50 South America   895 - 985   510 - 560   $725 - $790   $1,115 - $1,205   $200 - $250 Boddington 665 - 725 665 - 725 $880 - $960 $100 - $115 Tanami 300 - 325 300 - 325 $750 - $825 $90 - $100 Jundee 210 - 230 210 - 230 $765 - $835 $25 - $35 Waihi 100 - 115 100 - 115 $755 - $825 $10 - $20 KCGMe 300 - 330 300 - 330 $990 - $1,080 $30 - $40 Duketong 55 - 65 Other Australia/NZ                   $5 - $15 Australia/New Zealand   1,600 - 1,700   1,650 - 1,750   $855 - $930   $1,045 - $1,135   $275 - $300 Batu Hijau, Indonesiah   135 - 150   60 - 65   $630 - $690   $945 - $1,025   $125 - $150 Ahafo 375 - 410 375 - 410 $580 - $650 $100 - $115 Akyem   415 - 460   415 - 460   $435 - $495       $15 - $25 Africa   790 - 870   790 - 870   $510 - $555   $690 - $755   $115 - $140 Corporate/Other                   $20 - $25 Total Gold   5,000 - 5,350   4,625 - 4,900   $740 - $790   $1,075 - $1,175   $1,300 - $1,400 Phoenix 15 - 25 15 - 25 $2.25 - $2.50 Boddington 25 - 35 25 - 35 $2.50 - $2.80 Batu Hijauh   110 - 125   45 - 55   $1.75 - $2.00         Total Copper   160 - 175   95 - 110   $2.00 - $2.25   $2.75 - $2.95     aThe outlook ranges presented herein represent forward looking statements, which are subject to certain risks and uncertainties. See cautionary statement at the end of this release. Additionally, individual site ranges in the table above may not sum to total regional or Company levels to provide for portfolio flexibility. bAll-in sustaining cost (“AISC”) is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.

cIncludes Lone Tree operations.

dIncludes GTRJV operations.

eBoth consolidated and attributable production are shown on a pro-rata basis with a 44% ownership interest for La Herradura and a 50% ownership for KCGM.

fConsolidated production for Yanacocha is presented on a total production basis for the mine site; whereas attributable production represents a 51.35% ownership interest.

gLa Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.25% ownership interest in Duketon.

hConsolidated production for Batu Hijau is presented on a total production basis for the mine site; whereas attributable production represents an expected 44.5625% ownership interest in 2014 outlook (which assumes completion of the remaining share divestiture). This outlook remains subject to change pending clarification regarding the export regulations issued by the Government of Indonesia, which have the potential to impact future operating plans. See page 5 under the heading Indonesia Update for additional information. The Company’s ability to achieve 2014 outlook and estimates assumes the continuation of current operating plans, receipt of export approvals and other factors.  Additionally, for a discussion of factors which could impact future financial performance and operating results in Indonesia, see Item 1A, under the heading “Risk Factors,” of the Company’s Form 10-K, filed on February 21, 2014.

 

Consolidated and Attributable Production (Moz, kt)

    2014     2015     2016       Outlook     Outlook     Outlook Gold (Consolidated Moz)     5.0 – 5.4     5.5 – 5.9     5.5 – 5.9 Gold (Attributable Moz)     4.6 – 4.9     4.8 – 5.2     4.8 – 5.2 Copper (Consolidated kt)     160 – 175     280 – 295     225 – 240 Copper (Attributable kt)     95 - 110     145 - 160     125 – 140  

Consolidated CAS ($/oz, $/lb)

2014 2015 2016 Region     Outlook     Outlook     Outlook North America     $720 - $790     $740 - $810     $680 - $740 South America     $725 - $790     $560 - $615     $920 - $1,010 Australia/New Zealand     $855 - $930     $830 - $910     $850 - $925 Batu Hijau, Indonesia     $630 - $690     $380 - $420     $440 - $480 Africa     $510 - $555     $695 - $760     $730 - $800 Total Gold     $740 - $790     $690 - $740     $740 - $790 Total Copper     $2.00 - $2.25     $1.20 - $1.45     $1.40 - $1.65  

Consolidated AISC ($/oz, $/lb)

2014 2015 2016 Region     Outlook     Outlook     Outlook North America     $1,045 - $1,135     $955 - $1,045     $835 - $925 South America     $1,115 - $1,205     $900 - $990     $1,450 - $1,540 Australia/New Zealand     $1,045 - $1,135     $975 - $1,065     $985 - $1,075 Batu Hijau, Indonesia     $945 - $1,025     $510 - $590     $575 - $655 Africa     $690 - $755     $875 - $955     $885 - $965 Total Gold     $1,075 - $1,175     $950 - $1,050     $985 - $1,085 Total Copper     $2.75 - $2.95     $1.60 - $1.85     $1.80 - $2.05  

Consolidated Capital Expenditures ($M)

2014 2015 2016 Region     Outlook     Outlook     Outlook North America     $540 - $600     $430 - $475     $270 - $295 South America     $200 - $250     $140 - $155     $165 - $180 Australia/New Zealand     $275 - $300     $220 - $245     $190 - $210 Batu Hijau, Indonesia     $125 - $150     $130 - $145     $120 - $130 Africa     $115 - $140     $80 - $90     $80 - $90 Total     $1,300 - $1,400     $1,000 - $1,100     $900 - $1,000   2014 Expense Outlook Description    

2014ConsolidatedExpenses ($M)

        General & Administrative $175 - $200 Other Expense $150 - $175 Interest Expense $325 - $350 DD&A $1,050 - $1,125 Exploration and Projects $400 - $450 Sustaining Capital $1,200 - $1,300 Tax Rate     37% - 40%     NEWMONT MINING CORPORATION   CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in millions except per share)     Three Months Ended March 31, 2014 2013   Sales $ 1,764 $ 2,188   Costs and expenses Costs applicable to sales (1) 1,083 1,057 Amortization 298 267 Reclamation and remediation 20 18 Exploration 34 59 Advanced projects, research and development 42 52 General and administrative 45 56 Other expense, net   52     100     1,574     1,609   Other income (expense) Other income, net 46 26 Interest expense, net   (93 )   (65 )   (47 )   (39 ) Income before income and mining tax and other items 143 540 Income and mining tax expense (78 ) (180 ) Equity income (loss) of affiliates   -     (4 ) Income from continuing operations 65 356 Income (loss) from discontinued operations   (17 )   -   Net income 48 356 Net loss (income) attributable to noncontrolling interests   52     (42 ) Net income attributable to Newmont stockholders $ 100   $ 314     Net income (loss) attributable to Newmont stockholders: Continuing operations $ 117 $ 314 Discontinued operations   (17 )   -   $ 100   $ 314   Income (loss) per common share Basic: Continuing operations $ 0.23 $ 0.63 Discontinued operations   (0.03 )   -   $ 0.20   $ 0.63   Diluted: Continuing operations $ 0.23 $ 0.63 Discontinued operations   (0.03 )   -   $ 0.20   $ 0.63     Cash dividends declared per common share $ 0.150 $ 0.425

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(1) Excludes Amortization and Reclamation and remediation.

    NEWMONT MINING CORPORATION   CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in millions)   Three Months Ended March 31, 2014 2013 Operating activities: Net income $ 48 $ 356 Adjustments: Amortization 298 267 Stock based compensation and other non-cash benefits 13 19 Reclamation and remediation 20 18 Loss (income) from discontinued operations 17 - Impairment of marketable securities 1 4 Deferred income taxes 35 (11 ) Gain on asset and investment sales, net (50 ) (1 ) Other operating adjustments and write-downs 151 74 Net change in operating assets and liabilities   (350 )   (287 ) Net cash provided from continuing operations 183 439 Net cash used in discontinued operations   (3 )   (6 ) Net cash provided from operations   180     433   Investing activities: Additions to property, plant and mine development (235 ) (510 ) Acquisitions, net (28 ) (8 ) Sale of marketable securities 25 1 Purchases of marketable securities (1 ) (1 ) Proceeds from sale of other assets 70 25 Other   (9 )   (14 ) Net cash used in investing activities   (178 )   (507 ) Financing activities: Proceeds from debt, net 3 80 Proceeds from stock issuance, net - 1 Sale of noncontrolling interests - 32 Acquisition of noncontrolling interests (2 ) (6 ) Dividends paid to common stockholders (77 ) (211 ) Other   (4 )   (1 ) Net cash provided from (used in) financing activities   (80 )   (105 ) Effect of exchange rate changes on cash   (2 )   (4 ) Net change in cash and cash equivalents (80 ) (183 ) Cash and cash equivalents at beginning of period   1,555     1,561   Cash and cash equivalents at end of period $ 1,475   $ 1,378       NEWMONT MINING CORPORATION     CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited, in millions)   At March 31, At December 31, 2014 2013 ASSETS Cash and cash equivalents $ 1,475 $ 1,555 Trade receivables 206 230 Accounts receivable 319 252 Investments 83 78 Inventories 814 717 Stockpiles and ore on leach pads 760 805 Deferred income tax assets 239 246 Other current assets   1,351     1,006   Current assets 5,247 4,889 Property, plant and mine development, net 14,138 14,277 Investments 393 439 Stockpiles and ore on leach pads 2,723 2,680 Deferred income tax assets 1,416 1,473 Other long-term assets   881     849   Total assets $ 24,798   $ 24,607     LIABILITIES Debt $ 615 $ 595 Accounts payable 463 478 Employee-related benefits 247 341 Income and mining taxes 27 13 Other current liabilities   1,532     1,313   Current liabilities 2,884 2,740 Debt 6,146 6,145 Reclamation and remediation liabilities 1,519 1,513 Deferred income tax liabilities 696 635 Employee-related benefits 333 323 Other long-term liabilities   339     342   Total liabilities   11,917     11,698     EQUITY Common stock 798 789 Additional paid-in capital 8,458 8,441 Accumulated other comprehensive income (loss) (205 ) (182 ) Retained earnings   968     945   Newmont stockholders’ equity 10,019 9,993 Noncontrolling interests   2,862     2,916   Total equity   12,881     12,909   Total liabilities and equity $ 24,798   $ 24,607       Regional Operating Statistics Production Statistics Summary   Three Months Ended March 31, 2014     2013 Consolidated gold ounces produced (thousands): North America Carlin 228 231 Phoenix 53 51 Twin Creeks 96 99 La Herradura 28 55 405 436 South America Yanacocha 208 285   Australia/New Zealand Boddington 174 177 Tanami 84 60 Jundee 63 76 Waihi 27 30 Kalgoorlie 90 78 438 421 Indonesia Batu Hijau 16 14   Africa Ahafo 105 125 Akyem 120 - 225 125 1,292 1,281 Consolidated copper pounds produced (millions): Phoenix 12 7 Boddington 17 18 Batu Hijau 48 40 77 65 Consolidated copper tonnes produced (thousands): Phoenix 6 3 Boddington 8 8 Batu Hijau 21 18 35 29  

 

Three Months Ended March 31, 2014 2013 Attributable gold ounces produced (thousands):

North America

Carlin 228 231 Phoenix 53 51 Twin Creeks 96 99 La Herradura 28 55 405 436 South America Yanacocha 107 147 Other South America Equity Interests 15 15 122 162 Australia/New Zealand Boddington 174 177 Tanami 84 60 Jundee 63 76 Waihi 27 30 Kalgoorlie 90 78 Other Australia/New Zealand Equity Interests 12 14 450 435 Indonesia Batu Hijau 8 7   Africa Ahafo 105 125 Akyem 120 - 225 125 1,210 1,165 Attributable copper pounds produced (millions): Phoenix 12 7 Boddington 17 18 Batu Hijau 23 20 52 45 Attributable copper tonnes produced (thousands): Phoenix 6 3 Boddington 8 8 Batu Hijau 10 9 24 20       Costs Applicable to Sales Three Months Ended March 31, 2014 2013

Gold

Costs Applicable to Sales ($/ounce)(1) North America Carlin $ 842 $ 806 Phoenix 625 1,199 Twin Creeks 536 544 La Herradura   671   717   726   766 South America Yanacocha 1,075 576   Australia/New Zealand Boddington 851 873 Tanami 681 1,247 Jundee 667 710 Waihi 753 920 Kalgoorlie   839   1,006 783 922 Indonesia Batu Hijau 1,283 993   Africa Ahafo 554 555 Akyem   311   - 428 555 Average $ 751 $ 760 Attributable to Newmont $ 722 $ 781  

Copper

Costs Applicable to Sales ($/pound)(1) Phoenix $ 2.39 $ 3.20 Boddington 2.63 2.35 Batu Hijau   2.99   2.05 Average $ 2.71 $ 2.27 Attributable to Newmont $ 2.63 $ 2.34 (1)Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation.       Capital Expenditures Three Months Ended March 31, 2014 2013 Consolidated Capital Expenditures ($ million) North America Nevada $ 42 $ 46 Phoenix 7 31 Twin Creeks 32 25 La Herradura 6 19 Other North America   5   4   92   125 South America Yanacocha 13 48 Other South America   7   86   20   134 Australia/New Zealand Boddington 20 25 Kalgoorlie 20 23 Jundee 7 13 Tanami 3 3 Waihi 1 1 Other Australia/New Zealand   1   1   52   66 Indonesia Batu Hijau   15   23   15   23   Africa Ahafo 22 60 Akyem   1   66   23   126 Corporate and Other   6   23 Total - Accrual Basis $ 209 $ 497 Change in Capital Accrual   26   13 Total - Cash Basis $ 235 $ 510 Attributable to Newmont (Accrual Basis) $ 191 $ 420  

Supplemental Information

Non-GAAP Financial Measures

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

Reconciliation of Adjusted Net Income (loss) to GAAP Net Income (loss)

Management of the Company uses Adjusted net income to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items. Management’s determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income attributable to Newmont stockholders is reconciled to Adjusted net income as follows:

  Three Months Ended March 31, 2014   2013 Net income attributable to Newmont stockholders $ 100 $ 314 Discontinued operations loss 17 - Restructuring and other 3 5 Impairments 1 4 Asset Sales (13 ) - TMAC transaction costs   -     30   Adjusted net income $ 108   $ 353   Adjusted net income per share, basic $ 0.22 $ 0.70 Adjusted net income per share, diluted $ 0.22 $ 0.71  

CAS per Ounce/Pound

Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on both a consolidated and attributable to Newmont basis. Attributable costs applicable to sales are based on our economic interest in production from our mines. For operations where we hold less than a 100 percent economic share in the production, we exclude the share of gold or copper production attributable to the non-controlling interest. We include attributable costs applicable to sales per ounce/pound to provide management, investors and analysts with information with which to compare our performance to other gold producers. Costs applicable to sales per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

Net attributable costs applicable to sales per ounce measures the benefit of copper produced in conjunction with gold, as a credit against the cost of producing gold. A number of other gold producers present their costs net of the contribution from copper and other non-gold sales. We believe that including a measure on this basis provides management, investors and analysts with information with which to compare our performance to other gold producers, and to better assess the overall performance of our business. In addition, this measure provides information to enable investors and analysts to understand the importance of associated non-gold revenues to our cost structure.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

  Costs applicable to sales per ounce/pound   Gold   Copper Three Months Ended March 31, Three Months Ended March 31, 2014   2013 2014   2013   Costs applicable to sales: Consolidated per financial statements $ 960 $ 951 $ 123 $ 106 Noncontrolling interests(1)   (112 )   (82 )   (29 )   (23 ) Attributable to Newmont $ 848   $ 869   $ 94   $ 83     Gold/Copper sold (thousand ounces/million pounds): Consolidated 1,278 1,252 45 47 Noncontrolling interests(1)   (103 )   (139 )   (10 )   (12 ) Attributable to Newmont   1,175     1,113     35     35     Costs applicable to sales per ounce/pound: Consolidated $ 751 $ 760 $ 2.71 $ 2.27 Attributable to Newmont $ 722 $ 781 $ 2.63 $ 2.34     Net attributable costs applicable to sales per ounce Three Months Ended March 31, 2014 2013   Attributable costs applicable to sales: Gold $ 848 $ 869 Copper   94     83     942     952     Copper revenue: Consolidated (113 ) (146 ) Noncontrolling interests(1)   22     36     (91 )   (110 ) Net attributable costs applicable to sales $ 851   $ 842     Attributable gold ounces sold (thousands) 1,174 1,113   Net attributable costs applicable to sales per ounce $ 725 $ 757   (1)Relates to partners' interests in Batu Hijau and Yanacocha.  

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow from operations.

Current GAAP-measures used in the gold industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop, and sustain gold production. Therefore, we believe that All-in sustaining costs and attributable All-in sustaining costs are non-GAAP measures that provide additional information to management, investors, and analysts that aid in the understanding of the economics of our operations and performance compared to other gold producers and in the investor’s visibility by better defining the total costs associated with producing gold.

All-in sustaining cost (“AISC”) amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in International Financial Reporting Standards (“IFRS”), or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the All-in sustaining costs measure:

Cost Applicable to Sales - Includes all direct and indirect costs related to current gold production incurred to execute the current mine plan. Costs Applicable to Sales (“CAS”) includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Statement of Consolidated Income. In determining All-in sustaining costs, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Statement of Consolidated Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington, and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 3 – Segments that accompanies the Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines is based upon the relative sales percentage of copper and gold sold during the period.

Remediation Costs - Includes accretion expense related to asset retirement obligations (“ARO”) and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties recorded as an ARC asset. Accretion related to ARO and the amortization of the ARC assets for reclamation and remediation do not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation and remediation associated with current gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

Advanced Projects and Exploration - Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold exploration. We note that as current resources are depleted, exploration and advance projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves. As this relates to sustaining our gold production, and is considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Company’s Statement of Consolidated Income less the amount attributable to the production of copper at our Phoenix, Boddington, and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

General and Administrative - Includes cost related to administrative tasks not directly related to current gold production, but rather related to support our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis.

Other Expense, net - Includes costs related to regional administration and community development to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

Treatment and Refining Costs - Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable precious metal. These costs are presented net as a reduction of Sales.

Sustaining Capital - We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the breakout of sustaining and development capital costs based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

                   

Three Months EndedMarch 31, 2014

CostsApplicabletoSales(1)(2)(3)

RemediationCosts(4)

AdvancedProjects andExploration

General andAdministrative OtherExpense,Net(5)

TreatmentandRefiningCosts

SustainingCapital(6) All-InSustainingCosts

Ounces(000)/Pounds(millions)Sold(7)

All-InSustainingCostsper oz/lb

GOLD Carlin $ 192 $ 1 $ 4 $ - $ 1 $ - $ 20 $ 218 228 $ 956 Phoenix 34 - 1 - 1 2 7 45 55 818 Twin Creeks 55 1 1 - 1 - 32 90 103 874 La Herradura 16 1 4 - - - 4 25 23 1,087 Other North America   -   -   6   -   3   -   5   14 -   - North America   297   3   16   -   6   2   68   392 409   958   Yanacocha 221 30 7 - 9 - 14 281 206 1,364 Other South America   -   -   8   -   -   -   -   8 -   - South America   221   30   15   -   9   -   14   289 206   1,403 Attributable to Newmont   150 106   1,415   Boddington 142 3 - - 1 1 15 162 167 970 Tanami 55 1 1 - 1 - 20 78 81 963 Jundee 42 3 1 - - - 7 53 63 841 Waihi 19 - - - - - 1 20 25 800 Kalgoorlie 77 1 1 - - - 2 81 92 880 Other Australia/New Zealand   -   -   1   -   8   -   -   9 -   - Australia/New Zealand   335   8   4   -   10   1   45   403 428   942   Batu Hijau   8   1   -   -   1   1   2   13 6   2,167 Indonesia   8   1   -   -   1   1   2   13 6   2,167 Attributable to Newmont   7 3   2,167   Ahafo 61 1 9 - 3 - 21 95 110 864 Akyem 38 - - - 3 - 2 43 119 361 Other Africa   -   -   2   -   1   -   -   3 -   - Africa   99   1   11   -   7   -   23   141 229   616   Corporate and Other   -   -   29   45   6   -   4   84 -   - Total Gold   960   43   75   45   39   4   156   1,322 1,278   1,034 Attributable to Newmont $ 1,177 1,175 $ 1,002   COPPER Phoenix 26 - - - - 1 1 $ 28 11 $ 2.55 Boddington 40 1 - - - 5 3 49 15 3.27 Batu Hijau   57   5   1   -   7   5   13   88 19   4.63 Total Copper   123   6   1   -   7   11   17   165 45   3.67 Attributable to Newmont $ 120 35 $ 3.43 Consolidated $ 1,083 $ 49 $ 76 $ 45 $ 46 $ 15 $ 173 $ 1,487 (1)    

Excludes Amortization and Reclamation and remediation.

(2) Includes by-product credits of $23. (3)

Includes planned stockpile and leach pad inventory adjustments of $20 at Carlin, $2 at Twin Creeks, $35 at Yanacocha, $25 at Boddington, and $29 at Batu Hijau.

(4) Remediation costs include operating accretion of $18 and amortization of asset retirement costs of $31. (5) Other expense, net is adjusted for restructuring of $7. (6) Excludes development capital expenditures, capitalized interest, and the decrease in accrued capital of $62. The following are major development projects; Turf Vent Shaft, Conga, and Merian for 2014. (7) Excludes attributable gold sales from La Zanja and Duketon.                      

Three Months EndedMarch 31, 2013

CostsApplicabletoSales(1)(2)(3)

RemediationCosts(4)

AdvancedProjects andExploration

General andAdministrative

OtherExpense,Net(5)

TreatmentandRefiningCosts

SustainingCapital(6)

All-InSustainingCosts

Ounces(000)/Pounds(millions)Sold(7)

All-InSustainingCostsper oz/lb

GOLD Carlin $ 179 $ 1 $ 11 $ - $ 2 $ - $ 34 $ 227 222 $ 1,023 Phoenix 41 - 3 - 1 2 1 48 34 1,412 Twin Creeks 52 1 3 - 1 - 19 76 96 792 La Herradura 40 - 6 - - - 9 55 56 982 Other North America   -   -   8   -   2   -   3   13 -   - North America   312   2   31   -   6   2   66   419 408   1,027   Yanacocha 160 23 13 - 10 - 37 243 278 874 Other South America   -   -   3   -   -   -   -   3 -   - South America   160   23   16   -   10   -   37   246 278   885 Attributable to Newmont   127 143   888   Boddington 174 2 - - - 1 22 199 200 995 Tanami 75 1 2 - - - 23 101 60 1,683 Jundee 54 4 4 - - - 12 74 76 974 Waihi 28 1 1 - - - 2 32 30 1,067 Kalgoorlie 75 2 1 - - - 2 80 74 1,081 Other Australia/New Zealand   -   -   4   -   9   -   1   14 -   - Australia/New Zealand   406   10   12   -   9   1   62   500 440   1,136   Batu Hijau   7   -   1   -   2   1   3   14 7   2,000 Indonesia   7   -   1   -   2   1   3   14 7   2,000 Attributable to Newmont   7 3   2,000   Ahafo 66 1 13 - - - 42 122 119 1,025 Akyem - - 3 - - - - 3 - - Other Africa   -   -   2   -   7   -   -   9 -   - Africa   66   1   18   -   7   -   42   134 119   1,126   Corporate and Other   -   -   27   56   6   -   2   91 -   - Total Gold   951   36   105   56   40   4   212   1,404 1,252   1,121 Attributable to Newmont $ 1,278 1,113 $ 1,148   COPPER Phoenix 11 - 1 - 1 1 1 $ 15 4 $ 3.75 Boddington 48 1 - - - 5 5 59 20 2.95 Batu Hijau   47   2   5   -   5   6   20   85 23   3.70 Total Copper   106   3   6   -   6   12   26   159 47   3.38 Attributable to Newmont   115 35 $ 3.29 Consolidated $ 1,057 $ 39 $ 111 $ 56 $ 46 $ 16 $ 238 $ 1,563 (1)    

Excludes Amortization and Reclamation and remediation.

(2) Includes by-product credits of $30. (3)

Includes stockpile and leach pad inventory adjustments of $4 at Yanacocha, $1 at Tanami, and $2 at Waihi

(4) Remediation costs include operating accretion of $15 and amortization of asset retirement costs of $24. (5) Other expense, net is adjusted for restructuring of $9 and TMAC transaction costs of $45. (6) Excludes development capital expenditures, capitalized interest, and the decrease in accrued capital of $272. The following are major development projects; Phoenix Copper Leach, Turf Vent Shaft, Vista Vein, La Herradura Mill, Yanacocha Bio Leach, Conga, Merian, Ahafo North, Ahafo Mill Expansion, Subika Underground, and Akyem for 2013. (7) Excludes attributable gold sales from La Zanja and Duketon.  

Conference Call Information

A conference call will be held on Friday, April 25, 2014 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company's website.

Conference Call Details

    Dial-In Number 800.369.1917 Intl Dial-In Number 210.234.0025 Leader Kirsten Benefiel Passcode Newmont Replay Number 800.685.9501 Intl Replay Number 203.369.3318 Replay Passcode 2014  

Webcast Details

  URL

http://event.on24.com/r.htm?e=768036&s=1&k=599B4D88E5C120C46D61C5E8DBA322F3

 

The first quarter 2014 results and related financial and statistical information will be available after the market close on Thursday, April 24, 2014 on the “Investor Relations” section of the Company’s web site, www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.

Cautionary Statement Regarding Forward Looking Statements, Including Outlook:

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) plans and expectations to reduce costs and expenditures; (v) expectations regarding the development, growth and exploration potential of the Company’s projects; and (vi) expectations regarding the timing and/or likelihood of closing the term loan. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s projects being consistent with current expectations and mine plans, including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current mineral reserve and mineral resource estimates. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2013 Annual Report on Form 10-K, filed on February 21, 2014, with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors' own risk.

Newmont Mining CorporationInvestor ContactsKirsten Benefiel, 303.837.6117kirsten.benefiel@newmont.comorAllysa Howell, 303.837.5788allysa.howell@newmont.comorMedia ContactsOmar Jabara, 303.837.5114omar.jabara@newmont.comorDiane Reberger, 303.967.9455diane.reberger@newmont.com