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Last updated on April 20, 2014 at 14:04 EDT

Newmont Announces Quarterly Revenue of $2.5 Billion, Cash Flow from Continuing Operations of $578 Million

November 1, 2012

DENVER, Nov. 1, 2012 /PRNewswire/ — Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) today reported attributable net income from continuing operations of $400 million, or $0.81 per share, down 19% from $493 million, or $1.00 per share in the third quarter of 2011. Results for the third quarter of 2012 compared to the third quarter of 2011 were positively influenced by higher production from Nevada and at Yanacocha. Revenue from product sales also benefited from higher copper prices in the quarter. Results were also impacted by lower production and higher costs at Batu Hijau, (due to planned Phase 6 stripping), as well as previously announced lower ore tonnes and grade mined at Tanami and slightly lower grade at Ahafo due to mine sequencing. In addition, the Company incurred previously announced restructuring and other charges of $48 million. Adjusted net income(([1]))( )was $426 million, or $0.86 per share, compared with $635 million, or $1.29 per share, for the prior year quarter.

Quarterly Results

  • Consolidated revenue of $2.5 billion, a decrease of 10% from the prior year quarter;
  • Average realized gold and copper price of $1,659 per ounce and $3.55 per pound, down 2% and up 21%, respectively, from the prior year quarter;
  • Attributable gold and copper production of 1.2 million ounces and 35 million pounds, down 5% and 38%, respectively, from the prior year quarter; attributable gold and copper sales of 1.2 million ounces and 37 million pounds, down 4% and 27%, respectively, from the prior year quarter;
  • Gold and copper costs applicable to sales (“CAS”) of $693 per ounce and $2.38 per pound, up 11% and 116%, respectively, from the prior year quarter;
  • Cash flow from continuing operations of $578 million, down 54% from the prior year quarter; and
  • Fourth quarter gold price-linked dividend payable of $0.35 per share, consistent with the prior year quarter.

“Balanced performance from our operating portfolio allowed us to deliver results that were on track with our expectations for the quarter with strong performances at both our Nevada complex in North America and Yanacocha in Peru offset by weaker performance in our Asia Pacific region, primarily at Boddington and Tanami in Australia,” said Richard O’Brien, Chief Executive Officer. “We are also seeing clear progress on our commitment to deliver profitable ounces from new projects including our Akyem project in Ghana, which is 65% complete and proceeding on budget and on schedule to begin production in late 2013, and in Nevada where our Emigrant mine commenced production this quarter.”

Newmont now expects to be at the low end of its previously announced 2012 outlook for attributable gold and copper production of 5.0 to 5.1 million ounces and 145 to 165 million pounds, and at the high end of its narrower CAS outlook range of between $650 and $675 per ounce (on a co-product basis), due to previously announced issues at Tanami, Boddington and Waihi. Newmont also increased its 2012 copper CAS outlook range to between $2.20 and $2.35 per pound, primarily due to higher cost production from Boddington and Batu Hijau in Indonesia.

Newmont is maintaining its 2012 attributable capital expenditure outlook of $2.7 to $3.0 billion, or $3.0 to $3.3 billion on a consolidated basis.

As previously announced, Newmont’s Board of Directors approved a fourth quarter gold price-linked dividend payable of $0.35 per share[2] based upon the average London P.M. Gold Fix for the third quarter.

Operations

North America

Nevada – Attributable gold production in Nevada was 457,000 ounces at CAS of $661 per ounce during the third quarter. Gold production increased 7% from the prior year quarter due to higher mill grade at the Carlin Roaster, higher recovery at Mill 5 and higher leach placement as Emigrant commenced production, partially offset by lower grade at Phoenix. CAS per ounce increased 3% due to higher fuel prices, higher underground mining costs and lower capitalization of development costs, partially offset by higher by-product credits.

The Company is narrowing its outlook for 2012 attributable gold production of between 1.76 million and 1.78 million ounces at CAS of between $615 and $645 per ounce.

La Herradura – Attributable gold production at La Herradura in Mexico was 51,000 ounces at CAS of $608 per ounce during the third quarter. Gold production decreased 6% from the prior year quarter due to smelter adjustments, partially offset by additional leach placement. Leach placement was higher due to additional tons mined at Noche Buena. CAS per ounce increased 6% due to higher waste mining and employee profit sharing costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 220,000 and 230,000 ounces at a higher CAS of between $585 and $615 per ounce, due to the expectation of mining lower grade material at Soledad and Dipolos due to mine sequencing.

South America

Yanacocha – Attributable gold production at Yanacocha in Peru was 182,000 ounces at CAS of $520 per ounce during the third quarter. Gold production increased 8% from the prior year quarter due to higher mill and leach pad recovery, partially offset by lower leach placement at Yanacocha, Carachugo and La Quinua. CAS per ounce decreased 15% due to higher production and lower mining costs, partially offset by higher royalties and lower by-product credits.

The Company is narrowing its outlook for 2012 attributable gold production to between 680,000 and 690,000 ounces at CAS of between $485 and $515 per ounce.

La Zanja – Attributable gold production during the third quarter at La Zanja in Peru was approximately 14,000 ounces.

The Company is maintaining its outlook for 2012 attributable gold production of between 50,000 and 60,000 ounces.

Asia Pacific

Boddington – Attributable gold and copper production during the third quarter at Boddington in Australia was 166,000 ounces and 16 million pounds, respectively, at CAS of $928 per ounce and $2.29 per pound, respectively. Gold and copper production increased 1% and 7%, respectively, from the prior year quarter due to higher mill grade. Gold CAS per ounce increased 25% from the prior year quarter due to higher mill maintenance costs and the impact of the carbon tax, which took effect in July 2012. Copper CAS increased 2% per pound due to higher mill maintenance costs, partially offset by higher copper production. CAS per ounce and per pound were also impacted by a stronger Australian dollar, net of hedging gains.

The Company is reducing its outlook for 2012 attributable gold production to between 725,000 and 750,000 ounces due to unplanned mill downtime, at a higher CAS of between $865 and $895 per ounce due to higher mill maintenance costs. The Company is maintaining its outlook for attributable copper production of between 70 and 80 million pounds at a slightly higher CAS of between $2.25 and $2.40 per pound, due to higher mill maintenance costs.

Batu Hijau – Attributable gold and copper production during the third quarter at Batu Hijau in Indonesia was 7,000 ounces and 19 million pounds, respectively, at CAS of $1,115 per ounce and $2.38 per pound, respectively. Gold and copper production decreased 89% and 54%, respectively, due to processing lower grade stockpile ore. Waste tons mined increased 57% from the prior year quarter as Phase 6 waste removal continues as planned. CAS increased 134% per ounce and 164% per pound, respectively, due to lower production and higher waste mining costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 30,000 and 40,000 ounces of gold at a higher CAS of between $955 and $985 per ounce, due to higher waste mining costs. The Company is maintaining its outlook for attributable copper production of 75 to 85 million pounds at a slightly higher CAS of between $2.15 and $2.30 per pound, due to higher waste mining costs.

Other Australia/New Zealand – Attributable gold production during the third quarter was 222,000 ounces at CAS of $931 per ounce. Gold production decreased 14% from the prior year quarter due to lower underground mining rates at Tanami, a delay in open pit ore production at Waihi and lower grade at Jundee and Kalgoorlie, partially offset by higher throughput at Jundee and higher grade at Tanami. CAS per ounce increased 36% from the prior year quarter due to lower production, higher operating costs, a stronger Australian dollar, net of hedging gains and the impact of the carbon tax in Australia.

The Company is reducing its outlook for 2012 attributable gold production to between 935,000 and 960,000 ounces due to continued lower tonnes mined at Tanami and Waihi, at a higher CAS of between $885 and $915 per ounce due to lower production.

Africa

Ahafo – Attributable gold production during the third quarter at Ahafo in Ghana was 131,000 ounces at CAS of $561 per ounce. Gold production decreased 10% from the prior year quarter due to lower ore grade, partially offset by higher throughput and a drawdown of in-process inventory. CAS per ounce increased 12% from the prior year quarter due to lower production and higher labor costs, partially offset by lower power and mill maintenance costs.

The Company is maintaining its outlook for 2012 attributable gold production of between 555,000 to 570,000 ounces and narrowing its expected range of CAS to between $560 and $590 per ounce.

Capital Update

Consolidated capital expenditures were $811 million during the third quarter. Capital expenditures in North America were primarily related to the construction of the Phoenix secondary crusher and development of the Emigrant mine. Capital expenditures in South America were primarily related to the Conga and Merian projects, and the majority of capital expenditures in Asia Pacific were for surface and underground development. Capital expenditures in Africa were primarily related to the Akyem project. For the remainder of the year, 50% of 2012 consolidated capital expenditures are expected to be associated with major projects, while the remaining 50% is expected to be sustaining capital. Newmont is maintaining its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion, or $3.3 to $3.6 billion on a consolidated basis.

    2012 Outlook
    ------------

                       Attributable Production Consolidated CAS           Consolidated Capital          Attributable Capital
    Region                  (Kozs, Mlbs)         ($/oz, $/lb)               Expenditures ($M)             Expenditures ($M)

    Nevada                  1,760 - 1,780                     $615 - $645                   $750 - $800                         $750 - $800
    La Herradura              220 - 230                       $585 - $615                    $80 - $130                          $80 - $130
      North America         1,980 - 2,010                     $615 - $645                   $850 - $900                         $850 - $900
      -------------         -------------                     -----------                   -----------                         -----------
    Yanacocha                 680 - 690                       $485 - $515                   $530 - $580                         $270 - $310
    La Zanja                   50 - 60               n/a                                              -                                   -
    Conga                         -                   -                                     $500 - $600                         $250 - $300
      South America           730 - 750                       $485 - $515               $1,100 - $1,200                         $550 - $600
      -------------           ---------                       -----------               ---------------                         -----------
    Boddington                725 - 750                       $865 - $895                   $150 - $200                         $150 - $200
    Other Australia/NZ        935 - 960                       $885 - $915                   $325 - $375                         $325 - $375
    Batu Hijaud                30 - 40                        $955 - $985                   $200 - $225                         $100 - $125
      Asia Pacific          1,690 - 1,750                     $870 - $900                   $700 - $800                         $600 - $700
      ------------          -------------                     -----------                   -----------                         -----------
    Ahafo                     555 - 570                       $560 - $590                   $240 - $270                         $240 - $270
    Akyem                         -                                     -                   $370 - $420                         $370 - $420
      Africa                  555 - 570                        $560 -$590                   $600 - $700                         $600 - $700
      ------                  ---------                        ----------                   -----------                         -----------
    Corporate/Other               -                                     -                     $55 - $65                           $55 - $65
    ---------------                                                   ---
    Total Gold              5,000 - 5,100                 $650 - $675 a,b             $3,300 - $3,600 c                     $2,700 - $3,000
    ----------              -------------                 ---------------             -----------------                     ---------------
    Boddington                 70 - 80                      $2.25 - $2.40                             -                                   -
    Batu Hijaud                75 - 85                      $2.15 - $2.30                             -                                   -
    Total Copper              145 - 165                     $2.20 - $2.35
    ------------              ---------                     -------------

    a 2012 Attributable CAS Outlook is
     $640 -$690 per ounce.
    b 2012 Net Attributable CAS Outlook
     (inclusive of by-product credits)
     is $600 - $650 per ounce.
    c Includes capitalized interest of
     approximately $140 million.
    d Assumes Batu Hijau economic
     interest of 48.5% for 2012, subject
     to final divestiture obligations.
    2012 Outlook and Assumptions
    Description                  Consolidated Expenses ($M)       Attributable Expenses ($M)

    General &
     Administrative                                   $200 - $220                    $200 - $220
    Interest
     Expense                                          $240 - $260                    $230 - $250
    DD&A                                          $1,050 - $1,080                    $890 - $920
    Exploration
     Expense                                          $370 - $400                    $340 - $370
    Advanced
     Projects & R&D                                   $410 - $440                    $350 - $380
    Tax Rate                                                 ~32%                          ~32%
    Assumptions
    Gold Price
     ($/ounce)                                             $1,500                         $1,500
    Copper Price
     ($/pound)                                              $3.50                          $3.50
    Oil Price
     ($/barrel)                                               $90                            $90
    AUD Exchange
     Rate                                                   $1.00                           1.00
    ------------                                            -----                           ----

                                                                                                     NEWMONT MINING CORPORATION

                                                                                            CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                                                                             (unaudited, in millions except per share)

                                                          Three Months Ended                          Nine Months Ended
                                                             September 30,                              September 30,
                                                             -------------                              -------------
                                                                        2012                            2011                             2012                   2011
                                                                        ----                            ----                             ----                   ----

    Sales                                                                                  $2,480                                      $2,744                                      $7,392                                      $7,593

    Costs and expenses
                         Costs applicable
                         to sales (1)                                                       1,088                                       1,008                                       3,107                                       2,865
                        Amortization                                                          272                                         270                                         751                                         776
                         Reclamation and
                         remediation                                                           17                                           6                                          49                                          63
                        Exploration                                                           115                                         104                                         309                                         255
                         Advanced
                         projects,
                         research and
                         development                                                           74                                          93                                         258                                         247
                         General and
                         administrative                                                        51                                          50                                         162                                         145
                         Other expense,
                         net                                                                  131                                          36                                         377                                         196

                                                                                            1,748                                       1,567                                       5,013                                       4,547
                                                                                            -----                                       -----                                       -----                                       -----
    Other income (expense)
                         Other income,
                         net                                                                   52                                         (76)                                        121                                           3
                         Interest
                         expense, net                                                         (67)                                        (65)                                       (190)                                       (193)

                                                                                              (15)                                       (141)                                        (69)                                       (190)
                                                                                              ---                                        ----                                         ---                                        ----
    Income before income and mining tax and other
     items                                                                                    717                                       1,036                                       2,310                                       2,856
    Income and mining tax expense                                                            (228)                                       (371)                                       (746)                                       (863)
    Equity income (loss) of affiliates                                                         (9)                                         10                                         (39)                                         12
                                                                                              ---                                         ---                                         ---                                         ---
    Income from continuing operations                                                         480                                         675                                       1,525                                       2,005
    Loss from discontinued operations                                                         (33)                                          -                                        (104)                                       (136)
                                                                                              ---                                         ---                                        ----                                        ----
    Net income                                                                                447                                         675                                       1,421                                       1,869
    Net income attributable to noncontrolling
     interests                                                                                (80)                                       (182)                                       (285)                                       (475)
                                                                                              ---                                        ----                                        ----                                        ----
    Net income attributable to Newmont stockholders                                          $367                                        $493                                      $1,136                                      $1,394
                                                                                             ====                                        ====                                      ======                                      ======

    Net income attributable to Newmont stockholders:
                        Continuing operations                                                $400                                        $493                                      $1,240                                      $1,530
                        Discontinued operations                                               (33)                                          -                                        (104)                                       (136)
                                                                                              ---                                         ---                                        ----                                        ----
                                                                                             $367                                        $493                                      $1,136                                      $1,394
                                                                                             ====                                        ====                                      ======                                      ======
    Income per common share
                        Basic:
                        Continuing operations                                               $0.81                                       $1.00                                       $2.50                                       $3.10
                        Discontinued operations                                             (0.07)                                          -                                       (0.21)                                      (0.28)
                                                                                            $0.74                                       $1.00                                       $2.29                                       $2.82
                                                                                            =====                                       =====                                       =====                                       =====
                        Diluted:
                        Continuing operations                                               $0.81                                       $0.98                                       $2.48                                       $3.05
                        Discontinued operations                                             (0.07)                                          -                                       (0.21)                                      (0.27)
                                                                                            $0.74                                       $0.98                                       $2.27                                       $2.78
                                                                                            =====                                       =====                                       =====                                       =====

    Cash dividends declared per common share                                                $0.35                                       $0.30                                       $1.05                                       $0.65

((1)) Excludes Amortization and Reclamation and remediation.

              NEWMONT MINING CORPORATION

    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
               (unaudited, in millions)

                                                    Three Months Ended September 30,              Nine Months Ended September 30,
                                                    --------------------------------              -------------------------------
                                                                                2012         2011                                         2012 2011
                                                                                ----         ----                                         ---- ----

    Operating activities:
    Net income                                                                         $447                                         $675            $1,421  $1,869
    Adjustments:
    Amortization                                                                        272                                          270               751     776
    Loss from discontinued
     operations                                                                          33                                            -               104     136
    Reclamation and remediation                                                          17                                            6                49      63
    Deferred income taxes                                                                13                                          (68)               25    (106)
    Stock based compensation and
     other non-cash benefits                                                             19                                           18                55      62
    Impairment of marketable
     securities                                                                           7                                          174                39     175
    Gain on asset sales, net                                                             (2)                                         (15)              (12)    (68)
    Other operating adjustments and
     write-downs                                                                         43                                            6               149     102
    Net change in operating assets
     and liabilities                                                                   (271)                                         197            (1,039)   (343)
                                                                                       ----                                          ---            ------    ----
    Net cash provided from
     continuing operations                                                              578                                        1,263             1,542   2,666
    Net cash used in discontinued
     operations                                                                          (4)                                          (2)              (12)     (4)
                                                                                                                                     ---               ---     ---
    Net cash provided from
     operations                                                                         574                                        1,261             1,530   2,662
                                                                                        ---                                        -----             -----   -----
    Investing activities:
    Additions to property, plant
     and mine development                                                              (816)                                        (761)           (2,394) (1,781)
    Proceeds from sale of
     marketable securities                                                              103                                           19               209      74
    Purchases of marketable
     securities                                                                         (13)                                          (2)             (209)    (17)
    Acquisitions, net                                                                     -                                          (10)              (22) (2,301)
    Proceeds from sale of other
     assets                                                                               -                                            -                13       6
    Other                                                                               (11)                                           6               (48)     (9)
                                                                                                                                     ---               ---     ---
    Net cash used in investing
     activities                                                                        (737)                                        (748)           (2,451) (4,028)
                                                                                       ----                                         ----            ------  ------
    Financing activities:
    Proceeds from debt, net                                                               -                                        1,023             3,343   1,798
    Repayment of debt                                                                   (15)                                      (1,113)           (1,956) (2,086)
    Payment of conversion premium
     on debt                                                                              -                                                           (172)      -
    Dividends paid to common
     stockholders                                                                      (174)                                        (148)             (521)   (321)
    Dividends paid to
     noncontrolling interests                                                             -                                            -                (3)    (17)
    Proceeds from stock issuance,
     net                                                                                  5                                           27                20      35
    Other                                                                                (1)                                           3                (2)      3
                                                                                        ---                                          ---               ---     ---
    Net cash provided from (used
     in) financing activities                                                          (185)                                        (208)              709    (588)
    Effect of exchange rate changes
     on cash                                                                              -                                          (25)                1      33
                                                                                        ---                                          ---               ---     ---
    Net change in cash and cash
     equivalents                                                                       (348)                                         280              (211) (1,921)
    Cash and cash equivalents at
     beginning of period                                                              1,897                                        1,855             1,760   4,056
                                                                                      -----                                        -----             -----   -----
    Cash and cash equivalents at
     end of period                                                                   $1,549                                       $2,135            $1,549  $2,135
                                                                                     ======                                       ======            ======  ======

                                               NEWMONT MINING CORPORATION

                                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                                (unaudited, in millions)

                                                  At September                           At December
                                                30,                                    31,
                                                          2012                                  2011
                                                          ----                                  ----
                          ASSETS
    Cash and cash equivalents                                                   $1,549                  $1,760
    Trade receivables                                                            314                     300
    Accounts receivable                                                          470                     320
    Investments                                                                   89                      94
    Inventories                                                                  842                     714
    Stockpiles and ore on
     leach pads                                                                  720                     671
    Deferred income tax
     assets                                                                      251                     396
    Other current assets                                                       1,089                   1,133
                                                                               -----                   -----
             Current assets                                                    5,324                   5,388
    Property, plant and mine
     development, net                                                         17,472                  15,881
    Investments                                                                1,397                   1,472
    Stockpiles and ore on
     leach pads                                                                2,775                   2,271
    Deferred income tax
     assets                                                                    1,659                   1,605
    Other long-term assets                                                       896                     857
             Total assets                                                    $29,523                 $27,474

                        LIABILITIES
    Debt                                                                         $25                    $689
    Accounts payable                                                             612                     561
    Employee-related benefits                                                    320                     307
    Income and mining taxes                                                       87                     250
    Other current liabilities                                                  1,527                   2,133
                                                                               -----                   -----
             Current liabilities                                               2,571                   3,940
    Debt                                                                       6,099                   3,624
    Reclamation and
     remediation liabilities                                                   1,276                   1,169
    Deferred income tax
     liabilities                                                               2,186                   2,147
    Employee-related benefits                                                    479                     459
    Other long-term
     liabilities                                                                 396                     364
             Total liabilities                                                13,007                  11,703

                          EQUITY
    Common stock                                                                 786                     784
    Additional paid-in
     capital                                                                   8,307                   8,408
    Accumulated other
     comprehensive income                                                        595                     652
    Retained earnings                                                          3,667                   3,052
                                                                               -----                   -----
    Newmont stockholders'
     equity                                                                   13,355                  12,896
    Noncontrolling interests                                                   3,161                   2,875
                                                                               -----                   -----
             Total equity                                                     16,516                  15,771

             Total liabilities and equity                                    $29,523                 $27,474

     Regional Operating Statistics
     Production Statistics Summary

                                      Three Months   Nine Months Ended
                                     Ended September   September 30,
                                           30,
                                   ----------------- -----------------
                                                2012              2011  2012  2011
                                                ----              ----  ----  ----
     Gold
     ----
     Consolidated ounces
      produced (thousands):
       North America
    Nevada                                       457               426 1,270 1,216
    La Herradura                                  51                54   164   156
                                                 508               480 1,434 1,372
                                                 ---               --- ----- -----
       South America
    Yanacocha                                    354               328 1,110   958

       Asia Pacific
    Boddington                                   166               164   508   528
    Batu Hijau                                    16               133    54   276
    Other Australia/New
     Zealand                                     222               259   694   802
                                                 404               556 1,256 1,606
                                                 ---               --- ----- -----
       Africa
    Ahafo                                        131               146   438   478
                                               1,397             1,510 4,238 4,414
                                               =====             ===== ===== =====

     Copper
     ------
     Consolidated pounds
      produced (millions):
       Asia Pacific
    Boddington                                    16                15    48    43
    Batu Hijau                                    39                82   124   223
                                                  55                97   172   266
                                                 ===               ===   ===   ===

     Gold
     ----
     Attributable ounces
      produced (thousands):
       North America
    Nevada                                       457               426 1,270 1,216
    La Herradura                                  51                54   164   156
                                                 508               480 1,434 1,372
                                                 ---               --- ----- -----
       South America
    Yanacocha                                    182               169   570   492
    Other South America
     Equity Interests                             14                19    40    49
                                                 196               188   610   541
                                                 ---               ---   ---   ---

       Asia Pacific
    Boddington                                   166               164   508   528
    Batu Hijau                                     7                65    26   134
    Other Australia/New
     Zealand                                     222               259   694   802
    Other Asia Pacific
     Equity Interests                              7                 4    16    12
                                                 402               492 1,244 1,476
                                                 ---               --- ----- -----
       Africa
    Ahafo                                        131               146   438   478
                                               1,237             1,306 3,726 3,867
                                               =====             ===== ===== =====

     Copper
     ------
     Attributable pounds
      produced (millions):
       Asia Pacific
    Boddington                                    16                15    48    43
    Batu Hijau                                    19                41    60   109
                                                  35                56   108   152
                                                 ===               ===   ===   ===

     CAS and Capital Expenditures
                                                                Three Months Ended                      Nine Months Ended
                                                                  September 30,                          September 30,
                                                                  -------------                          -------------
                                                                              2012                       2011                          2012  2011
                                                                              ----                       ----                          ----  ----
     Gold
     ----
    Costs Applicable to Sales ($/ounce)(1)
            North America
         Nevada                                                                                    $661                                $641         $661   $640
         La Herradura                                                                               608                                 575          585    498
                                                                                                    ---                                 ---          ---    ---
                                                                                                    655                                 633          652    624
                                                                                                    ---                                 ---          ---    ---
            South America
         Yanacocha                                                                                  520                                 610          481    578

            Asia Pacific
         Boddington                                                                                 928                                 743          886    657
         Batu Hijau                                                                               1,115                                 476          985    423
         Other Australia/New Zealand                                                                931                                 684          850    623
                                                                                                    937                                 652          870    597
                                                                                                    ---                                 ---          ---    ---
            Africa
         Ahafo                                                                                      561                                 501          571    465
                                                                                                    ---                                 ---          ---    ---
       Average                                                                                     $693                                $622         $664   $587
                                                                                                   ====                                ====         ====   ====
       Attributable to Newmont                                                                     $716                                $628         $689   $593
                                                                                                   ====                                ====         ====   ====
    Copper
    ------
    Costs Applicable to Sales ($/pound)(1)
            Asia Pacific
         Boddington                                                                               $2.29                               $2.25        $2.33  $2.12
         Batu Hijau                                                                                2.38                                0.90         2.19   1.01
       Average                                                                                    $2.38                               $1.10        $2.23  $1.17
                                                                                                  =====                               =====        =====  =====
       Attributable to Newmont                                                                    $2.35                               $1.25        $2.23  $1.30
                                                                                                  =====                               =====        =====  =====

    (1) Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation.

                                                                                     Three Months Ended                   Nine Months Ended
                                                                                        September 30,                       September 30,
                                                                                     ------------------                   -----------------
                                                                                                   2012                                2011         2012   2011
                                                                                                   ----                                ----         ----   ----
    Consolidated Capital Expenditures ($ million)
       North America
    Nevada                                                                                         $150                                $152         $520   $380
    La Herradura                                                                                     12                                  28           41     55
    Other North America                                                                               9                                  33            9     74
                                                                                                    171                                 213          570    509
                                                                                                    ---                                 ---          ---    ---
       South America
    Yanacocha                                                                                       149                                 117          392    244
    Conga                                                                                           125                                 197          467    448
                                                                                                    274                                 314          859    692
                                                                                                    ---                                 ---          ---    ---
       Asia Pacific
    Boddington                                                                                       25                                  47           77    122
    Batu Hijau                                                                                       37                                  61           98    149
    Other Australia/New Zealand                                                                      77                                  78          214    212
    Other Asia Pacific                                                                                4                                   4           12      8
                                                                                                    143                                 190          401    491
                                                                                                    ---                                 ---          ---    ---
       Africa
    Ahafo                                                                                            68                                  34          176     71
    Akyem                                                                                           116                                  60          305    127
                                                                                                    184                                  94          481    198
                                                                                                    ---                                 ---          ---    ---
    Corporate and Other                                                                              39                                   5           76     23
                                                                                                    ---                                 ---
     Total - Accrual Basis                                                                         $811                                $816       $2,387 $1,913
                                                                                                   ----                                ----       ------ ------
     Change in Capital Accrual                                                                        5                                 (55)           7   (132)
     Total - Cash Basis                                                                            $816                                $761       $2,394 $1,781
                                                                                                   ====                                ====       ====== ======
     Attributable to Newmont (Accrual Basis)                                                       $659                                $632       $1,919 $1,500
                                                                                                   ====                                ====       ====== ======

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 to GAAP Net Income
Management uses the non-GAAP financial measure 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 the 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, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. 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 September Nine Months Ended September
                                                                 30,   30,
                                                                 ---   ---
                                                            2012     2011       2012   2011
                                                            ----     ----       ----   ----
       Net income
     attributable to
     Newmont stockholders                                   $367           $493      $1,136     $1,394
                        Loss from discontinued operations         33               -        104        136
                          Impairments/asset sales, net             6             142         30        110
                          Restructuring and other                 20               -         20          -
                       Boddington contingent consideration         -               -          8          -
                          Fronteer acquisition costs               -               -          -         18
                           Income tax benefit from internal
                           restructuring                           -               -          -        (65)
                                                                 ---             ---        ---        ---
     Adjusted net income                                    $426           $635      $1,298     $1,593
                                                            ====           ====      ======     ======
     Adjusted net income
      per share, basic                                     $0.86          $1.29       $2.62      $3.23
     Adjusted net income
      per share, diluted                                   $0.85          $1.26       $2.60      $3.17

Costs Applicable to Sales 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% 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 of 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 non-gold revenues to our cost structure.

     Costs applicable to sales per ounce
                                                                            Three Months Ended September        Nine Months Ended September
                                                                                                     30,                             30,
                                                                                                     ---                             ---
                                                                                                    2012              2011                   2012  2011
                                                                                                    ----              ----                   ----  ----

     Costs applicable to sales:
                                   Consolidated per financial statements(1)                               $950                               $907       $2,746  $2,541
                                   Noncontrolling interests(2)                                             (99)                              (128)        (278)   (333)
                                                                                                           ---                               ----         ----    ----
                                   Attributable to Newmont                                                $851                               $779       $2,468  $2,208
                                                                                                          ====                               ====       ======  ======

     Gold sold (thousand ounces):
                                   Consolidated                                                          1,370                              1,458        4,138   4,327
                                   Noncontrolling interests(2)                                            (181)                              (218)        (554)   (601)
                                                                                                          ----                               ----         ----    ----
                                   Attributable to Newmont                                               1,189                              1,240        3,584   3,726
                                                                                                         =====                              =====        =====   =====

     Costs applicable to sales
      per ounce:
                                   Consolidated                                                           $693                               $622         $664    $587
                                   Attributable to Newmont                                                $716                               $628         $689    $593

              (1)Includes
              by-product
              credits of
              $57 and $165
              in the third
              quarter and
              first nine
              months of
              2012,
              respectively
              and $70 and
              $237 in the
              third
              quarter and
              first nine
              months of
              2011,
              respectively.
              (2)Relates to
              partners'
              interests in
              Batu Hijau
              and
              Yanacocha.

     Costs applicable to sales per pound
                                                                Three Months Ended September        Nine Months Ended September
                                                                                         30,                               30,
                                                                                         ---                               ---
                                                                                        2012               2011                  2012  2011
                                                                                        ----               ----                  ----  ----

     Costs applicable
      to sales:
                                     Consolidated per financial
                                     statements(1)                                            $138                               $101        $361   $324
                                    Noncontrolling interests(2)                                (51)                               (37)       (131)  (124)
                                                                                               ---                                ---        ----   ----
                                    Attributable to Newmont                                    $87                                $64        $230   $200
                                                                                               ===                                ===        ====   ====

     Copper sold (million pounds):
                                    Consolidated                                                58                                 92         162    276
                                    Noncontrolling interests(2)                                (21)                               (41)        (59)  (122)
                                                                                               ---                                ---         ---   ----
                                    Attributable to Newmont                                     37                                 51         103    154
                                                                                               ===                                ===         ===    ===

     Costs applicable
      to sales per
      pound:
                                    Consolidated                                             $2.38                              $1.10       $2.23  $1.17
                                    Attributable to Newmont                                  $2.35                              $1.25       $2.23  $1.30

              (1)Includes
              by-product
              credits of
              $3 and $8 in
              the third
              quarter and
              first nine
              months of
              2012,
              respectively
              and $7 and
              $23 in the
              third
              quarter and
              first nine
              months of
              2011,
              respectively.
              (2)Relates to
              partners'
              interests in
              Batu Hijau.

     Net attributable costs applicable to sales per ounce
                                                          Three Months Ended September       Nine Months Ended September
                                                                                   30,                            30,
                                                                                   ---                            ---
                                                                                  2012             2011                  2012    2011
                                                                                  ----             ----                  ----    ----

     Attributable costs
      applicable to
      sales:
                         Gold                                                          $851                              $779         $2,468         $2,208
                         Copper                                                          87                                64            230            200
                                                                                        ---                               ---            ---            ---
                                                                                        938                               843          2,698          2,408
                                                                                        ---                               ---          -----          -----

     Copper revenue:
                         Consolidated                                                  (206)                             (273)          (569)          (991)
                         Noncontrolling interests(1)                                     75                               119            209            434
                                                                                        ---                               ---            ---            ---
                                                                                       (131)                             (154)          (360)          (557)
                                                                                       ----                              ----           ----           ----
     Net attributable
      costs applicable
      to sales                                                                    $807                           $689          $2,338         $1,851
                                                                                  ====                           ====          ======         ======

     Attributable gold
      ounces sold
      (thousands)                                                                1,189                          1,240           3,584          3,726
     Net attributable
      costs applicable
      to sales per
      ounce                                                                       $679                           $556            $652           $497

              (1)Relates
              to
              partners'
              interests
              in Batu
              Hijau.

Conference Call Information

A conference call will be held on Friday, November 2, 2012 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      888.566.1822
            Intl Dial-In Number 312.470.7116
            Leader              John Seaberg
            Passcode            Newmont
            Replay Number       800-834-5839
            Intl Replay Number  203-369-3351
            Replay Passcode                                            2012

    Webcast Details
            URL                  http://services.choruscall.com/links/
                                 newmont121102.html

Please download the free Newmont Investor Relations iPad application from the Apple Online App Store, keyword search “Newmont”.

Cautionary Statement
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 and expectations regarding the Company’s strategy and plans; (ii) estimates of future mineral production and sales; (iii) estimates of future operating costs, costs applicable to sales and other costs; (iv) estimates of future capital expenditures and consolidated advanced projects, research and development expenditures; and (v) the Company’s exploration pipeline and expectations regarding the development, growth and exploration potential of the Company’s projects, including project start dates, ramp up, life, pipeline timelines (including commencement of mining, drilling and stage gate advancement and expansion opportunities) and expected project returns; (vi) potential ounces or tons of reserves, non-reserve mineralization and potential resources; (vii) dividend payments and increases; (viii) future liquidity, cash and balance sheet expectations; and (ix) other financial outlook for the Company’s operations and projects. 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; (iii) political, social and legal 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 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 such supplies otherwise being available on bases consistent with the Company’s current expectations; and (vii) the accuracy of our current mineral reserve and mineral resource estimates and exploration information. 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: (i) gold and other metals price volatility; (ii) currency fluctuations; (iii) increased capital and operating costs and scarcity of competition for required labor and supplies; (iv) variances in ore grade or recovery rates from those assumed in mining plans; (v) political and operational risks; (vi) community relations, conflict resolution and outcome of projects or oppositions; and (vii) governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2011 Annual Report on Form 10-K, filed on February 24, 2012, 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.

[1] Non-GAAP measure. See page 11 for reconciliation.

[2] Payable on December 28, 2012 to shareholders of record as of December 6, 2012.

SOURCE Newmont Mining Corporation


Source: PR Newswire