/FIRST ADD -- LAW040 -- Newmont Mining Corporation Earnings/
Supplemental Information 1. Gold Production Summary - Americas
Three Months Ended Nevada Canada (2) Yanacocha, Peru June 30, 2004
2003 2004 2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit
52,026 42,929 n/a n/a 51,926 53,988 Underground 351 436 256 323 n/a
n/a Tons Milled/Processed (000): Oxide 975 348 263 322 n/a n/a
Refractory 2,262 2,115 n/a n/a n/a n/a Leach 5,583 4,537 n/a n/a
37,358 39,971 Average Ore Grade (oz/ ton): Oxide 0.125 0.191 0.224
0.213 n/a n/a Refractory 0.189 0.213 n/a n/a n/a n/a Leach 0.022
0.031 n/a n/a 0.021 0.029 Average Mill Recovery Rate: Oxide 81.5%
86.1% 94.0% 94.9% n/a n/a Refractory 90.3% 91.3% n/a n/a n/a n/a
Ounces Produced (000): 566.7 536.9 55.2 67.2 612.0 682.1 Equity
Ounces Produced (000): Oxide 100.3 56.9 55.2 67.2 n/a n/a
Refractory 362.0 388.1 n/a n/a n/a n/a Leach 79.1 91.9 n/a n/a
314.3 350.3 Total 541.4 536.9 55.2 67.2 314.3 350.3 Equity Ounces
Sold (000) 560.1 535.3 55.4 68.4 317.7 343.7 Production Costs Per
Ounce: Direct mining and production costs $312 $267 $313 $260 $147
$117 Capitalized mining and other (43) (21) 2 1 (6) (4) Cash
operating costs 269 246 315 261 141 113 Royalties and production
taxes 6 8 4 1 6 5 Total cash costs 275 254 319 262 147 118
Reclamation and mine closure costs 3 3 2 8 2 2 Total costs
applicable to sales 278 257 321 270 149 120 Depreciation and
amortization 56 66 87 81 83 69 Total production costs $334 $323
$408 $351 $232 $189 Kori Kollo, Three Months Ended Bolivia Other
(1) June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons):
Open-Pit n/a 2,894 2,888 3,118 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 1,842
n/a n/a Leach n/a 1,242 1,126 1,060 Average Ore Grade (oz/ ton):
Oxide n/a n/a n/a n/a Refractory n/a 0.038 n/a n/a Leach n/a 0.017
0.027 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a
Refractory n/a 61.8% n/a n/a Ounces Produced (000): 6.9 55.2 18.2
33.4 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory
n/a 37.9 n/a n/a Leach 6.1 10.8 18.2 33.4 Total 6.1 48.7 18.2 33.4
Equity Ounces Sold (000) 5.6 48.9 18.2 33.4 Production Costs Per
Ounce: Direct mining and production costs $299 $199 $157 $179
Capitalized mining and other (11) (11) 5 (5) Cash operating costs
288 188 162 174 Royalties and production taxes 17 -- -- 5 Total
cash costs 305 188 162 179 Reclamation and mine closure costs 42 13
1 3 Total costs applicable to sales 347 201 163 182 Depreciation
and amortization 86 32 58 74 Total production costs $433 $233 $221
$256 (1) Other includes La Herradura in 2004 and La Herradura and
Mesquite in 2003 (2) Includes Golden Giant and Holloway Six Months
Ended Nevada Canada (2) Yanacocha, Peru June 30, 2004 2003 2004
2003 2004 2003 Tons Mined (000 dry short tons): Open-Pit 100,447
87,789 n/a n/a 98,036 101,448 Underground 707 842 526 659 n/a n/a
Tons Milled/Processed (000): Oxide 2,042 759 526 668 n/a n/a
Refractory 4,354 4,510 n/a n/a n/a n/a Leach 9,076 7,603 n/a n/a
65,166 72,793 Average Ore Grade (oz/ ton): Oxide 0.139 0.193 0.245
0.235 n/a n/a Refractory 0.190 0.214 n/a n/a n/a n/a Leach 0.023
0.030 n/a n/a 0.021 0.028 Average Mill Recovery Rate: Oxide 78.7%
87.5% 94.5% 95.1% n/a n/a Refractory 90.6% 90.3% n/a n/a n/a n/a
Ounces Produced (000): 1,159.1 1,163.2 124.3 151.7 1,415.6 1,321.5
Equity Ounces Produced (000): Oxide 226.5 130.3 124.3 151.7 n/a n/a
Refractory 703.1 846.2 n/a n/a n/a n/a Leach 169.0 186.7 n/a n/a
726.9 678.6 Total 1,098.6 1,163.2 124.3 151.7 726.9 678.6 Equity
Ounces Sold (000) 1,177.5 1,168.2 127.3 151.7 728.0 678.8
Production Costs Per Ounce: Direct mining and production costs $315
$250 $285 $258 $140 $119 Capitalized mining and other (41) (21) 1 1
(7) (3) Cash operating costs 274 229 286 259 133 116 Royalties and
production taxes 7 10 3 1 6 5 Total cash costs 281 239 289 260 139
121 Reclamation and mine closure costs 3 2 1 7 2 2 Total costs
applicable to sales 284 241 290 267 141 123 Depreciation and
amortization 56 58 78 92 76 63 Total production costs $340 $299
$368 $359 $217 $186 Kori Kollo, Six Months Ended Bolivia Other (1)
June 30, 2004 2003 2004 2003 Tons Mined (000 dry short tons):
Open-Pit n/a 6,213 5,516 5,876 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 3,636
n/a n/a Leach n/a 2,718 2,114 2,017 Average Ore Grade (oz/ ton):
Oxide n/a n/a n/a n/a Refractory n/a 0.037 n/a n/a Leach n/a 0.017
0.026 0.026 Average Mill Recovery Rate: Oxide n/a n/a n/a n/a
Refractory n/a 63.1% n/a n/a Ounces Produced (000): 14.5 113.0 35.5
64.6 Equity Ounces Produced (000): Oxide n/a n/a n/a n/a Refractory
n/a 75.2 n/a n/a Leach 12.8 24.3 35.5 64.6 Total 12.8 99.5 35.5
64.6 Equity Ounces Sold (000) 12.8 100.7 35.5 64.6 Production Costs
Per Ounce: Direct mining and production costs $277 $191 $145 $163
Capitalized mining and other (10) (11) -- (5) Cash operating costs
267 180 145 158 Royalties and production taxes 16 -- -- 6 Total
cash costs 283 180 145 164 Reclamation and mine closure costs 36 10
2 3 Total costs applicable to sales 319 190 147 167 Depreciation
and amortization 111 34 63 66 Total production costs $430 $224 $210
$233 (1) Other includes La Herradura in 2004 and La Herradura and
Mesquite in 2003 (2) Includes Golden Giant and Holloway 2. Gold
Production Summary - Australia Three Months Ended Kalgoorlie
Pajingo Tanami Yandal June 30, 2004 2003 2004 2003 2004 2003 2004
2003 Tons Mined (000 dry short tons) 11,615 11,856 136 199 4,687
5,622 1,948 874 Tons Milled/ Processed (000) 1,833 1,807 207 201
1,116 1,134 659 1,259 Average Ore Grade (oz/ton) 0.066 0.076 0.224
0.464 0.140 0.165 0.110 0.120 Average Mill Recovery Rate 85.3%
86.0% 96.2% 96.9% 94.7% 96.7% 92.0% 89.1% Ounces Produced (000)
98.8 101.8 47.1 93.8 152.3 181.0 69.4 137.8 Equity Ounces Produced
(000) 98.8 101.8 47.1 93.8 152.3 180.9 69.4 137.8 Equity Ounces
Sold (000) 98.5 104.2 48.6 93.8 158.9 190.7 72.0 141.9 Production
Costs Per Ounce: Direct mining and production costs $307 $240 $288
$124 $239 $217 $335 $298 Capitalized mining and other 1 22 (7) (4)
17 (8) (1) (2) Cash operating costs 308 262 281 120 256 209 334 296
Royalties and production taxes 10 10 9 12 21 20 7 9 Total cash
costs 318 272 290 132 277 229 341 305 Reclamation and mine closure
costs 5 3 2 (1) 3 2 4 3 Total costs applicable to sales 323 275 292
131 280 231 345 308 Depreciation and amortization 39 29 126 73 63
55 62 52 Total production costs $362 $304 $418 $204 $343 $286 $407
$360 Six Months Ended Kalgoorlie Pajingo Tanami Yandal June 30,
2004 2003 2004 2003 2004 2003 2004 2003 Tons Mined (000 dry short
tons) 23,479 23,051 310 372 8,430 10,981 4,583 1,729 Tons Milled/
Processed (000) 3,433 3,444 392 394 2,211 2,232 1,560 2,616 Average
Ore Grade (oz/ton) 0.069 0.071 0.280 0.431 0.150 0.148 0.124 0.115
Average Mill Recovery Rate 86.3% 85.8% 96.2% 96.8% 95.3% 96.3%
92.8% 90.6% Ounces Produced (000) 204.7 193.6 113.3 167.1 317.7
316.4 188.3 282.9 Equity Ounces Produced (000) 204.7 193.6 113.3
167.1 317.7 297.2 188.3 282.9 Equity Ounces Sold (000) 220.4 193.2
123.8 167.8 342.0 296.2 213.1 281.2 Production Costs Per Ounce:
Direct mining and production costs $302 $239 $228 $116 $236 $229
$261 $274 Capitalized mining and other (3) 12 (7) (3) 7 (11) (1) 7
Cash operating costs 299 251 221 113 243 218 260 281 Royalties and
production taxes 9 10 11 11 23 20 8 9 Total cash costs 308 261 232
124 266 238 268 290 Reclamation and mine closure costs 4 3 -- (1) 1
1 5 4 Total costs applicable to sales 312 264 232 123 267 239 273
294 Depreciation and amortization 33 24 122 74 59 59 79 64 Total
production costs $345 $288 $354 $197 $326 $298 $352 $358 3. Gold
Production Summary - Other Batu Hijau, Zarafshan, Ovacik, Three
Months Indonesia Uzbekistan Turkey Ended June 30, 2004 2003 2004
2003 2004 2003 Tons Mined (000 dry short tons) 54,393 61,712 n/a
n/a 2,092 1,019 Tons Milled/Processed (000): Leach n/a n/a 1,965
2,040 n/a n/a Mill 13,528 12,063 n/a n/a 125 157 Average Ore Grade
(oz/ton) 0.019 0.015 0.045 0.044 0.347 0.355 Average Mill Recovery
Rate 79.4% 80.1% n/a n/a 95.5% 93.7% Ounces Produced (000) 204.8
147.8 60.7 60.6 41.1 50.6 Equity Ounces Produced (000) 115.2 83.2
60.7 60.6 41.1 50.6 Equity Ounces Sold (000) 111.2 91.9 68.9 61.6
69.5 51.2 Production Costs Per Ounce: Direct mining and production
costs $136 n/a $143 $148 $192 $113 Capitalized mining and other 30
n/a 1 2 (12) (1) Cash operating costs 166 n/a 144 150 180 112
Royalties and production taxes 8 n/a -- -- 13 11 Total cash costs
174 n/a 144 150 193 123 Reclamation and mine closure costs 1 n/a 1
2 2 1 Total costs applicable to sales 175 n/a 145 152 195 124
Depreciation and amortization 42 n/a 45 47 125 74 Total production
costs $217 n/a $190 $199 $320 $198 Martha, Minahasa, Three Months
Ended New Zealand Indonesia June 30, 2004 2003 2004 2003 Tons Mined
(000 dry short tons) 1,229 1,526 n/a n/a Tons Milled/Processed
(000): Leach n/a n/a n/a n/a Mill 343 343 170 187 Average Ore Grade
(oz/ton) 0.103 0.073 0.158 0.151 Average Mill Recovery Rate 90.8%
91.4% 90.1% 90.8% Ounces Produced (000) 30.5 23.0 24.5 25.7 Equity
Ounces Produced (000) 30.5 23.1 23.0 24.1 Equity Ounces Sold (000)
30.1 27.7 23.6 26.4 Production Costs Per Ounce: Direct mining and
production costs $299 $356 $308 $259 Capitalized mining and other
(93) (119) 3 3 Cash operating costs 206 237 311 262 Royalties and
production taxes -- -- (9) 5 Total cash costs 206 237 302 267
Reclamation and mine closure costs 3 2 (6) 5 Total costs applicable
to sales 209 239 296 272 Depreciation and amortization 108 100 5 61
Total production costs $317 $339 $301 $333 Batu Hijau, Zarafshan,
Ovacik, Six Months Ended Indonesia Uzbekistan Turkey June 30, 2004
2003 2004 2003 2004 2003 Tons Mined (000 dry short tons) 112,313
113,347 n/a n/a 3,573 1,909 Tons Milled/ Processed (000): Leach n/a
n/a 3,944 4,034 n/a n/a Mill 26,606 24,651 n/a n/a 241 284 Average
Ore Grade (oz/ton) 0.014 0.014 0.046 0.044 0.311 0.334 Average Mill
Recovery Rate 79.2% 78.7% n/a n/a 95.0% 93.5% Ounces Produced (000)
299.9 272.3 121.8 118.5 71.1 88.1 Equity Ounces Produced (000)
168.7 153.2 121.8 118.5 71.1 88.1 Equity Ounces Sold (000) 167.6
146.2 124.8 121.7 75.4 86.2 Production Costs Per Ounce: Direct
mining and production costs $140 n/a $144 $144 $208 $111
Capitalized mining and other 27 n/a 2 2 (20) 2 Cash operating costs
167 n/a 146 146 188 113 Royalties and production taxes 8 n/a -- --
14 12 Total cash costs 175 n/a 146 146 202 125 Reclamation and mine
closure costs 2 n/a 1 2 1 -- Total costs applicable to sales 177
n/a 147 148 203 125 Depreciation and amortization 42 n/a 47 45 131
83 Total production costs $219 n/a $194 $193 $334 $208 Martha,
Minahasa, Six Months Ended New Zealand Indonesia June 30, 2004 2003
2004 2003 Tons Mined (000 dry short tons) 2,374 2,290 n/a n/a Tons
Milled/Processed (000): Leach n/a n/a n/a n/a Mill 712 636 336 372
Average Ore Grade (oz/ton) 0.084 0.083 0.155 0.165 Average Mill
Recovery Rate 90.6% 90.8% 90.1% 90.4% Ounces Produced (000) 52.6
48.1 46.8 56.2 Equity Ounces Produced (000) 52.6 46.5 44.0 52.8
Equity Ounces Sold (000) 52.7 47.3 49.8 58.1 Production Costs Per
Ounce: Direct mining and production costs $352 $293 $302 $242
Capitalized mining and other (127) (64) 2 3 Cash operating costs
225 229 304 245 Royalties and production taxes -- -- -- 5 Total
cash costs 225 229 304 250 Reclamation and mine closure costs 3 3
-- 4 Total costs applicable to sales 228 232 304 254 Depreciation
and amortization 120 100 53 56 Total production costs $348 $332
$357 $310 4. Base Metal Summary - Batu Hijau and Golden Grove Three
Months Ended Six Months Ended June 30, June 30, Batu Hijau 2004 (1)
2003 (1) 2004 (1) 2003 (1) Total tons mined (000) 54,393 61,712
112,313 113,347 Dry tons processed (000) 13,528 12,063 26,606
24,651 Average copper grade 0.82% 0.71% 0.73% 0.70% Average
recovery rate 90.4% 88.7% 88.3% 88.3% Copper produced (000 lbs)
200,735 151,706 341,804 304,014 Equity copper produced (000 lbs)
112,913 85,335 192,265 171,008 Equity copper sold (000 lbs) 106,848
91,195 180,667 161,044 Realized copper price per pound $1.06 $0.77
$1.24 $0.77 Total cash cost per equity pound $0.46 $0.38 $0.54
$0.40 Noncash cost per equity pound 0.12 0.14 0.14 0.15 Total
production cost per equity pound $0.58 $0.52 $0.68 $0.55 (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 Six
Months Ended June 30, June 30, Golden Grove 2004 2003 2004 2003
Total tons mined (000) 380 370 689 693 Dry tons processed (000) 368
353 674 699 Average copper grade 3.64% 4.27% 3.56% 5.00% Average
copper recovery rate 87.3% 91.8% 87.2% 91.3% Copper produced (000
lbs) 16,182 11,352 19,737 25,099 Copper sold (000 lbs) 19,923
16,167 22,188 37,456 Realized copper price per pound $1.22 $0.75
$1.24 $0.80 Copper cash cost per pound $0.89 $0.60 $0.84 $0.56
Average zinc grade 10.55% 11.82% 10.46% 12.21% Average zinc
recovery rate 87.3% 88.4% 89.6% 90.6% Zinc produced (000 lbs)
18,783 35,071 59,077 74,876 Zinc sold (000 lbs) 19,670 28,715
65,118 53,628 Realized zinc price per pound $0.47 $0.34 $0.47 $0.35
Zinc cash cost per pound $0.37 $0.19 $0.37 $0.25 Gold sold (000
ounces) 5.2 4.8 5.3 6.8 Silver sold (000 ounces) 299.9 551.5 313.7
774.8 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. Three Months Ended
June 30, 2004 Total La Golden North Nevada Herradura Giant Holloway
America Yanacocha Costs applicable to sales under GAAP $162.2 $3.0
$11.0 $6.6 $182.8 $96.0 Minority interest -- -- -- -- -- (48.6)
Accretion expense (1.3) -- -- -- (1.3) (0.7) Write-down of
inventories -- -- -- -- -- -- Purchased ore and other (6.8) -- --
0.1 (6.7) -- Total cash cost for per ounce calculations 154.1 3.0
11.0 6.7 174.8 46.7 Accretion expense and other 1.3 -- -- -- 1.3
0.8 Depreciation, depletion and amortization 31.6 1.0 3.2 1.6 37.4
47.9 Minority interest and other -- -- -- -- -- (21.6) Total
production cost for per ounce calculations $187.0 $4.0 $14.2 $8.3
$213.5 $73.8 Equity ounces sold (000) 560.1 18.2 39.5 15.9 633.7
317.7 Equity cash cost per ounce sold $275 $162 $277 $423 $276 $147
Equity total production cost per ounce sold $334 $221 $361 $524
$337 $232 Three Months Ended June 30, 2004 Total Kori South Kollo
America Pajingo Kalgoorlie Yandal Tanami Costs applicable to sales
under GAAP $4.6 $100.6 $14.6 $31.8 $25.1 $44.4 Minority interest
(0.5) (49.1) -- -- -- -- Accretion expense (0.3) (1.0) (0.1) (0.5)
(0.2) (0.4) Write-down of inventories (2.1) (2.1) (0.5) -- (0.2) --
Purchased ore and other -- -- -- -- -- -- Total cash cost for per
ounce calculations 1.7 48.4 14.0 31.3 24.7 44.0 Accretion expense
and other 0.3 1.1 0.1 0.5 0.2 0.4 Depreciation, depletion and
amortization 0.5 48.4 6.1 3.9 4.4 10.0 Minority interest and other
(0.1) (21.7) -- -- -- -- Total production cost for per ounce
calculations $2.4 $76.2 $20.2 $35.7 $29.3 $54.4 Equity ounces sold
(000) 5.6 323.3 48.6 98.5 72.0 158.9 Equity cash cost per ounce
sold $305 $150 $290 $318 $341 $277 Equity total production cost per
ounce sold $433 $236 $418 $362 $407 $343 Three Months Ended June
30, 2004 Total Batu Australia Hijau Zarafshan Minahasa Martha
Ovacik Costs applicable to sales under GAAP $115.9 $27.2 $10.1 $7.7
$6.3 $13.5 Minority interest -- (12.4) -- -- -- -- Accretion
expense (1.2) (0.2) -- 0.1 (0.1) (0.1) Write-down of inventories
(0.7) -- -- (0.2) -- -- Purchased ore and other -- 4.6 (0.1) (0.5)
-- -- Total cash cost for per ounce calculations 114.0 19.2 10.0
7.1 6.2 13.4 Accretion expense and other 1.2 0.2 -- (0.1) 0.1 0.1
Depreciation, depletion and amortization 24.4 8.2 3.1 0.1 3.2 8.7
Minority interest and other -- (3.6) -- -- -- -- Total production
cost for per ounce calculations $139.6 $24.0 $13.1 $7.1 $9.5 $22.2
Equity ounces sold (000) 378.0 111.2 68.9 23.6 30.1 69.5 Equity
cash cost per ounce sold $302 $174 $144 $302 $206 $193 Equity total
production cost per ounce sold $370 $217 $190 $301 $317 $320 Three
Months Ended June 30, 2004 Total Other Total International Gold
Costs applicable to sales under GAAP $64.8 $464.1 Minority interest
(12.4) (61.5) Accretion expense (0.3) (3.8) Write-down of
inventories (0.2) (3.0) Purchased ore and other 4.0 (2.7) Total
cash cost for per ounce calculations 55.9 393.1 Accretion expense
and other 0.3 3.9 Depreciation, depletion and amortization 23.3
133.5 Minority interest and other (3.6) (25.3) Total production
cost for per ounce calculations $75.9 $505.2 Equity ounces sold
(000) 303.3 1,638.3 Equity cash cost per ounce sold $185 $240
Equity total production cost per ounce sold $251 $309 Three Months
Ended June 30, 2003 Total La Golden North Nevada Mesquite Herradura
Giant Holloway America Costs applicable to sales under GAAP $138.4
$2.4 $3.5 $13.8 $4.7 $162.8 Minority interest -- -- -- -- -- --
Accretion expense (1.5) - - (0.5) (0.1) (2.1) Write-down of
inventories -- -- -- -- -- -- Purchased ore and other (3.2) -- --
-- -- (3.2) Total cash cost for per ounce calculations 133.7 2.4
3.5 13.3 4.6 157.5 Accretion expense and other 1.5 -- -- 0.4 0.1
2.0 Depreciation, depletion and amortization 34.7 1.6 0.9 4.4 1.1
42.7 Minority interest and other -- -- -- -- -- -- Total production
cost for per ounce calculations $169.9 $4.0 $4.4 $18.1 $5.8 $202.2
Equity ounces sold (000) 535.3 15.6 17.8 53.8 14.6 637.1 Equity
cash cost per ounce sold $254 $153 $201 $248 $310 $251 Equity total
production cost per ounce sold $323 $260 $253 $338 $396 $323 Three
Months Ended June 30, 2003 Total Kori South Yanacocha Kollo America
Pajingo Kalgoorlie Yandal Costs applicable to sales under GAAP
$83.5 $11.2 $94.7 $12.4 $29.7 $45.4 Minority interest (42.3) (1.3)
(43.6) -- -- -- Accretion expense (0.9) (0.7) (1.6) (0.1) (0.3)
(0.4) Write-down of inventories -- -- -- -- (1.0) (1.7) Purchased
ore and other -- -- -- -- -- -- Total cash cost for per ounce
calculations 40.3 9.2 49.5 12.3 28.4 43.3 Accretion expense and
other 0.9 0.7 1.6 (0.1) 0.3 0.4 Depreciation, depletion and
amortization 40.4 1.7 42.1 6.9 3.0 7.4 Minority interest and other
(16.9) (0.2) (17.1) -- -- -- Total production cost for per ounce
calculations $64.7 $11.4 $76.1 $19.1 $31.7 $51.1 Equity ounces sold
(000) 343.7 48.9 392.6 93.8 104.2 141.9 Equity cash cost per ounce
sold $118 $188 $127 $132 $272 $305 Equity total production cost per
ounce sold $189 $233 $194 $204 $304 $360 Three Months Ended June
30, 2003 Total Batu Tanami Australia Hijau(1) Zarafshan Minahasa
Martha Costs applicable to sales under GAAP $45.8 $133.3 n/a $9.4
$7.7 $7.8 Minority interest 0.1 0.1 n/a -- -- (0.1) Accretion
expense (0.6) (1.4) n/a (0.1) (0.3) (0.1) Write-down of inventories
(2.0) (4.7) n/a -- -- (1.2) Purchased ore and other -- -- n/a --
(0.5) -- Total cash cost for per ounce calculations 43.3 127.3 n/a
9.3 6.9 6.4 Accretion expense and other 0.2 0.8 n/a 0.1 0.3 --
Depreciation, depletion and amortization 11.1 28.4 n/a 2.9 1.7 2.9
Minority interest and other 0.1 0.1 n/a -- (0.1) (0.1) Total
production cost for per ounce calculations $54.7 $156.6 n/a $12.3
$8.8 $9.2 Equity ounces sold (000) 190.7 530.6 n/a 61.6 26.4 27.7
Equity cash cost per ounce sold $229 $241 n/a $150 $267 $237 Equity
total production cost per ounce sold $286 $295 n/a $199 $333 $339
Three Months Ended June 30, 2003 Total Other Total Ovacik
International Gold Costs applicable to sales under GAAP $6.5 $31.4
$422.2 Minority interest -- (0.1) (43.6) Accretion expense -- (0.5)
(5.6) Write-down of inventories -- (1.2) (5.9) Purchased ore and
other -- (0.5) (3.7) Total cash cost for per ounce calculations 6.5
29.1 363.4 Accretion expense and other (0.1) 0.3 4.7 Depreciation,
depletion and amortization 3.8 11.3 124.5 Minority interest and
other -- (0.2) (17.2) Total production cost for per ounce
calculations $10.2 $40.5 $475.4 Equity ounces sold (000) 51.2 166.9
1,727.2 Equity cash cost per ounce sold $123 $175 $212 Equity total
production cost per ounce sold $198 $243 $277 Six Months Ended June
30, 2004 Total La Golden North Nevada Herradura Giant Holloway
America Yanacocha Costs applicable to sales under GAAP $354.9 $5.2
$23.9 $12.8 $396.8 $207.9 Minority interest -- -- -- -- -- (105.0)
Accretion expense (2.7) -- (0.1) -- (2.8) (1.5) Write-down of
inventories -- -- -- -- -- -- Purchased ore and other (20.9) -- 0.1
0.1 (20.7) (0.1) Total cash cost for per ounce calculations 331.3
5.2 23.9 12.9 373.3 101.3 Accretion expense and other 2.7 -- 0.1 --
2.8 1.5 Depreciation, depletion and amortization 66.7 2.2 6.5 3.4
78.8 102.2 Minority interest and other -- -- -- -- -- (46.7) Total
production cost for per ounce calculations $400.7 $7.4 $30.5 $16.3
$454.9 $158.3 Equity ounces sold (000) 1,177.5 35.5 92.2 35.1
1,340.3 728.0 Equity cash cost per ounce sold $281 $145 $259 $368
$278 $139 Equity total production cost per ounce sold $340 $210
$331 $466 $339 $217 Six Months Ended June 30, 2004 Total Kori South
Kollo America Pajingo Kalgoorlie Yandal Tanami Costs applicable to
sales under GAAP $7.0 $214.9 $29.3 $68.8 $58.5 $94.2 Minority
interest (0.8) (105.8) -- -- -- -- Accretion expense (0.5) (2.0)
(0.2) (0.9) (1.1) (0.6) Write-down of inventories (2.1) (2.1) (0.5)
-- (0.2) (2.7) Purchased ore and other -- (0.1) -- -- -- -- Total
cash cost for per ounce calculations 3.6 104.9 28.6 67.9 57.2 90.9
Accretion expense and other 0.5 2.0 -- 0.9 1.1 0.4 Depreciation,
depletion and amortization 1.6 103.8 15.2 7.4 16.7 20.0 Minority
interest and other (0.2) (46.9) -- -- -- -- Total production cost
for per ounce calculations $5.5 $163.8 $43.8 $76.2 $75.0 $111.3
Equity ounces sold (000) 12.8 740.8 123.8 220.4 213.1 342.0 Equity
cash cost per ounce sold $283 $142 $232 $308 $268 $266 Equity total
production cost per ounce sold $430 $221 $354 $345 $352 $326 Six
Months Ended June 30, 2004 Total Batu Australia Hijau Zarafshan
Minahasa Martha Ovacik Costs applicable to sales under GAAP $250.8
$40.8 $18.5 $16.4 $12.1 $15.4 Minority interest -- (18.5) -- -- --
-- Accretion expense (2.8) (0.3) (0.1) -- (0.2) (0.2) Write-down of
inventories (3.4) -- -- (0.2) -- -- Purchased ore and other -- 7.3
(0.1) (1.0) -- -- Total cash cost for per ounce calculations 244.6
29.3 18.3 15.2 11.9 15.2 Accretion expense and other 2.4 0.3 0.1 --
0.2 0.1 Depreciation, depletion and amortization 59.3 12.5 5.8 2.8
6.3 9.9 Minority interest and other -- (5.5) -- (0.2) -- -- Total
production cost for per ounce calculations $306.3 $36.6 $24.2 $17.8
$18.4 $25.2 Equity ounces sold (000) 899.3 167.6 124.8 49.8 52.7
75.4 Equity cash cost per ounce sold $272 $175 $146 $304 $225 $202
Equity total production cost per ounce sold $341 $219 $194 $357
$348 $334 Six Months Ended June 30, 2004 Total Other Total
International Gold Costs applicable to sales under GAAP $103.2
$965.7 Minority interest (18.5) (124.3) Accretion expense (0.8)
(8.4) Write-down of inventories (0.2) (5.7) Purchased ore and other
6.2 (14.6) Total cash cost for per ounce calculations 89.9 812.7
Accretion expense and other 0.7 7.9 Depreciation, depletion and
amortization 37.3 279.2 Minority interest and other (5.7) (52.6)
Total production cost for per ounce calculations $122.2 $1,047.2
Equity ounces sold (000) 470.3 3,450.7 Equity cash cost per ounce
sold $191 $235 Equity total production cost per ounce sold $260
$303 Six Months Ended June 30, 2003 Total La Golden North Nevada
Mesquite Herradura Giant Holloway America Costs applicable to sales
under GAAP $283.9 $5.0 $5.7 $30.5 $10.1 $335.2 Minority interest --
-- -- -- -- -- Accretion expense (3.1) (0.1) - (1.0) (0.2) (4.4)
Write-down of inventories (1.0) -- -- -- -- (1.0) Purchased ore and
other (3.2) -- -- -- -- (3.2) Total cash cost for per ounce
calculations 276.6 4.9 5.7 29.5 9.9 326.6 Accretion expense and
other 3.1 0.1 -- 0.9 0.2 4.3 Depreciation, depletion and
amortization 66.3 2.5 1.7 11.6 2.4 84.5 Minority interest and other
-- -- -- -- -- -- Total production cost for per ounce calculations
$346.0 $7.5 $7.4 $42.0 $12.5 $415.4 Equity ounces sold (000)
1,168.2 30.2 34.4 119.0 32.7 1,384.5 Equity cash cost per ounce
sold $239 $163 $166 $249 $301 $238 Equity total production cost per
ounce sold $299 $250 $218 $353 $382 $302 Six Months Ended June 30,
2003 Total Kori South Yanacocha Kollo America Pajingo Kalgoorlie
Yandal Costs applicable to sales under GAAP $169.0 $21.8 $190.8
$20.8 $52.1 $85.1 Minority interest (85.4) (2.6) (88.0) -- -- --
Accretion expense (1.7) (1.1) (2.8) (0.1) (0.8) (1.1) Write-down of
inventories -- -- -- -- (1.0) (2.4) Purchased ore and other -- --
-- -- -- -- Total cash cost for per ounce calculations 81.9 18.1
100.0 20.7 50.3 81.6 Accretion expense and other 1.7 1.1 2.8 (0.1)
0.8 1.1 Depreciation, depletion and amortization 75.9 3.9 79.8 12.5
4.6 18.0 Minority interest and other (33.1) (0.5) (33.6) -- -- --
Total production cost for per ounce calculations $126.4 $22.6
$149.0 $33.1 $55.7 $100.7 Equity ounces sold (000) 678.8 100.7
779.5 167.8 193.2 281.2 Equity cash cost per ounce sold $121 $180
$129 $124 $261 $290 Equity total production cost per ounce sold
$186 $224 $191 $197 $288 $358 Six Months Ended June 30, 2003 Total
Batu Tanami Australia Hijau(1) Zarafshan Minahasa Martha Costs
applicable to sales under GAAP $77.4 $235.4 n/a $18.0 $17.1 $13.9
Minority interest (4.3) (4.3) n/a -- -- (0.4) Accretion expense
(0.5) (2.5) n/a (0.2) (0.3) (0.2) Write-down of inventories (2.0)
(5.4) n/a -- (1.3) (2.6) Purchased ore and other -- -- n/a -- (1.0)
-- Total cash cost for per ounce calculations 70.6 223.2 n/a 17.8
14.5 10.7 Accretion expense and other 0.1 1.9 n/a 0.2 0.3 0.1
Depreciation, depletion and amortization 18.7 53.8 n/a 5.5 3.4 4.9
Minority interest and other (1.0) (1.0) n/a -- (0.2) (0.1) Total
production cost for per ounce calculations $88.4 $277.9 n/a $23.5
$18.0 $15.6 Equity ounces sold (000) 296.2 938.4 n/a 121.7 58.1
47.3 Equity cash cost per ounce sold $238 $238 n/a $146 $250 $229
Equity total production cost per ounce sold $298 $296 n/a $193 $310
$332 Six Months Ended June 30, 2003 Total Other Total Ovacik
International Gold Costs applicable to sales under GAAP $10.9 $59.9
$821.3 Minority interest -- (0.4) (92.7) Accretion expense (0.1)
(0.8) (10.5) Write-down of inventories -- (3.9) (10.3) Purchased
ore and other -- (1.0) (4.2) Total cash cost for per ounce
calculations 10.8 53.8 703.6 Accretion expense and other -- 0.6 9.6
Depreciation, depletion and amortization 7.2 21.0 239.1 Minority
interest and other -- (0.3) (34.9) Total production cost for per
ounce calculations $18.0 $75.1 $917.4 Equity ounces sold (000) 86.2
313.3 3,415.7 Equity cash cost per ounce sold $125 $172 $207 Equity
total production cost per ounce sold $208 $240 $269 6.
Reconciliation of Batu Hijau Costs Applicable to Sales to Total
Production Cost Per Equity Copper Pound (in millions, except per
pound) Three Months Ended Six Months Ended June 30, June 30, 2004
(1) 2003 (1) 2004 (1) 2003 (1) Costs applicable to sales per
financial statements $70.8 $31.8 $134.6 $61.1 Minority interest
(31.8) (5.0) (61.0) (12.5) Accretion expense (0.4) (0.8) (0.9)
(1.7) Smelting and refining 10.7 9.1 25.0 17.5 Total cash cost for
per pound calculation 49.3 35.1 97.7 64.4 Accretion expense 0.4 0.7
0.9 1.8 Depreciation, depletion and amortization 21.5 19.9 42.6
38.6 Minority interest (9.5) (8.7) (18.7) (16.9) Total production
cost for per pound calculation $61.7 $47.0 $122.5 $87.9 Equity
copper sold (000 lbs) 106,848 91,195 180,667 161,044 Total cash
cost per equity pound $0.46 $0.38 $0.54 $0.40 Total production cost
per equity pound $0.58 $0.52 $0.68 $0.55 (1) 2004 and 2003 cash and
total production cost per pound presented on a co-product basis. 7.
Reconciliation of Golden Grove Costs Applicable to Sales to Copper
and Zinc Cash Costs Per Pound (in millions, except per pound) Three
Months Ended June 30, 2004 2003 Total Copper Zinc Total Copper Zinc
Costs applicable to sales per financial statements $22.3 $16.6 $5.7
$9.7 $8.8 $0.9 Accretion expense (0.2) (0.1) (0.1) (0.1) (0.1) --
Write-down inventories (3.5) (0.9) (2.6) (3.6) (1.5) (2.1) Smelting
and refining 6.2 2.1 4.1 9.1 2.6 6.5 Total cash cost for per pound
calculation $24.8 $17.7 $7.1 $15.1 $9.8 $5.3 Total sold (000 lbs)
n/a 19,923 19,670 n/a 16,167 28,715 Total cash cost per pound sold
n/a $0.89 $0.37 n/a $0.60 $0.19 Six Months Ended June 30, 2004 2003
Total Copper Zinc Total Copper Zinc Costs applicable to sales per
financial statements $31.4 $17.1 $14.3 $24.9 $17.8 $7.1 Accretion
expense (0.3) (0.1) (0.2) (0.2) (0.1) (0.1) Write-down inventories
(3.5) (0.9) (2.6) (6.8) (2.9) (3.9) Smelting and refining 15.3 2.6
12.7 16.3 6.2 10.1 Total cash cost for per pound calculation $42.9
$18.7 $24.2 $34.2 $21.0 $13.2 Total sold (000 lbs) n/a 22,188
65,118 n/a 37,456 53,628 Total cash cost per pound sold n/a $0.84
$0.37 n/a $0.56 $0.25 8. Gold Hedge Position - Current Maturity
Summary (1) (000 ounces) Gold Put Price Option Capped Contracts
Contracts Years Ozs Price (2) Ozs Price (2) 2004 98 $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 423 $308 2,350 $377 The mark-to-market value of the
gold put option contracts was negative $9 million at June 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 second quarter
earnings conference call and web cast presentation will be held on
Wednesday, July 28, 2004 beginning at 4:00 p.m. Eastern Time (2:00
p.m. Mountain Time). To participate: Dial-In Number: (312) 470-7109
Leader: Russell Ball 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. 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 cash
flows to the gold and other metals prices; (v) estimates of future
capital expenditures, expenses and tax rates; (vi) estimates
regarding timing of future production or closure activities; (vii)
statements regarding future exploration results and the replacement
of reserves; (viii) statements regarding future asset sales or
rationalization efforts; and (ix) 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 -- July 28 FIRST AND FINAL ADD DATASOURCE: Newmont
Mining Corporation Web site: http://www.newmont.com/
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