Filed by Newmont Mining Corporation
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
of the Securities Exchange Act of 1934
Subject Company: Normandy Mining Limited
Commission File No. 132-00965
--------------------------------------------------------------------------------
[NEWMONT LOGO]
Newmont Mining Corporation
1700 Lincoln Street
Denver, Colorado 80203 NEWS RELEASE
--------------------------------------------------------------------------------
MEDIA CONTACT: INVESTOR CONTACT:
Doug Hock Wendy Yang
303-837-5812 303-837-6141
NEWMONT ACHIEVES STRONG FOURTH QUARTER RESULTS;
OPERATING AND FINANCIAL TARGETS MET FOR 4TH QUARTER AND FULL YEAR 2001
DENVER, February 6, 2002 -- Newmont Mining Corporation (NYSE: NEM) achieved a
strong fourth quarter 2001 performance with net income of $20.2 million or $0.10
per common share. Excluding Battle Mountain merger costs and certain non-cash
items, Newmont had its best financial quarter of the year, earning $31.7 million
or $0.16 per share, after tax. Contributing to this performance were on-target
gold production and cash costs, and a higher realized gold price. In the
year-ago quarter, the company had a net loss of $33.5 million, or $0.17 per
share. Before merger costs and non-cash items, earnings in the fourth quarter of
2000 were $34.3 million, or $0.18 per share.
For the full year 2001, Newmont earned $13.7 million or $0.07 per share, before
merger and non-cash costs, a 73 percent improvement over earnings of $7.9
million, or $0.04 per share, in 2000. Lower exploration expenses, an income tax
benefit and significant equity income of $33 million from the Batu Hijau
copper-gold mine more than offset 5 percent lower gold sales and a 4 percent
lower average realized gold price of $271 per ounce as compared to 2000.
After accounting for atypical pre-tax charges including $60.5 million for
corporate restructuring and merger costs associated with the Battle Mountain
transaction and $41 million in asset write-downs, Newmont realized a net loss of
$30.8 million or $0.16 per share for 2001. The write-downs primarily related to
a slightly shorter mine life at Minahasa in Indonesia, which ended mining in
October, and inventory adjustments. In 2000, the company's net loss after merger
and non-cash costs was $102.3 million, or $0.53 per share. Results for 2000 were
restated to account for the acquisition of Battle Mountain Gold Corporation in
January 2001 on a pooling of interests basis.
Wayne W. Murdy, Newmont's Chairman, President and Chief Executive Officer, said,
"I am proud of our organization's fourth quarter performance. In the fourth
quarter, we actively pursued our pending acquisitions of Normandy Mining Limited
and Franco-Nevada Mining Corporation Limited. Notwithstanding the demands of
that process, our employees remained focused on our 2001 goals. These efforts
enabled Newmont to report a profit for the year, before certain non-cash items,
thereby exceeding our mid-year estimated forecast for breakeven results. In
2001, cash flow from our operations totaled $381.3 million or $1.95 per share."
---------------------------------------------------------------------------------------------------
Three months ended Dec. 31, Year ended Dec. 31,
2001 2000 2001 2000
---- ---- ---- ----
Earnings (loss) before merger/non-cash items* $ 31.7 $ 34.3 $ 13.7 $ 7.9
Per share 0.16 0.18 0.07 0.04
Net income (loss)* to common shares 20.2 (33.5) (30.8) (102.3)
Per share 0.10 (0.17) (0.16) (0.53)
Net cash provided by operations* 147.0 229.6 381.3 567.8
Equity gold sales (000 oz) 1,395.3 1,741.4 5,430.2 5,727.8
Total cash cost per oz $182 $164 $184 $170
Total production cost per oz $235 $221 $236 $231
Av. realized price per oz $279 $274 $271 $281
*in millions
---------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
1 of 19
Mr. Murdy continued, "We are pleased by the strengthening gold price over the
past six months, with gold currently trading above $290 per ounce, and welcome
analyst forecasts for an improved average gold price in 2002. At the same time,
we recognize that gold remains volatile, with a range in 2001 from a low of $256
per ounce in April to a high of $293 in September. As an essentially unhedged
producer, we adjust our operations to the prevailing spot gold price on an
ongoing basis. In 2001, we lowered our production target to 5.4 million ounces
of gold from our 2000 output of 5.7 million ounces, including that of Battle
Mountain, to focus on cash flow, and we achieved that goal at a total cash cost
of $184 per ounce."
NEW NEWMONT
Newmont remains on schedule for the closing of the acquisitions of Normandy and
Franco-Nevada in February, following the Newmont's shareholder meeting and
satisfaction of remaining conditions. On January 30, the Franco-Nevada
shareholders overwhelmingly approved Newmont's acquisition of Franco-Nevada at a
special meeting that marked the closing of a phenomenal 18-year record for
Franco-Nevada and the opening of a new chapter for its shareholders as
shareholders of Newmont. Newmont will hold its special meeting for shareholders
to approve certain matters relating to the acquisitions in Denver on February
13.
Mr. Murdy said, "We believe that Newmont will become the new gold standard for
investors around the world. We are focusing our integration efforts to
immediately begin capturing anticipated synergies of $70 million to $80 million
in the first full year. Since our initial announcement in November, we have had
tremendous support from our existing shareholder base as well as new interest
from the broader market. Despite the short-term arbitrage pressure on the stock
price associated with the acquisitions, in 2001, Newmont's share price rose 12
percent as compared to a 6 percent increase for the Philadelphia Gold and Silver
Index and a 13 percent decline in the S&P 500 Index. The new Newmont will offer
the most leverage to a rising gold price and is perfectly suited for investment
portfolio diversification."
OPERATING HIGHLIGHTS
For the fourth quarter of 2001, revenues were $445 million, 15 percent lower
than the 2000 quarter, on 20 percent lower equity production of 1.4 million gold
ounces. A total cash cost of $182 per ounce was up from $164. Total production
costs were $235 per ounce for the fourth quarter compared with $221 in the 2000
fourth quarter.
For the full year, Newmont booked revenues of $1.7 billion, an 8 percent decline
from the year 2000. North American operations sold 3.2 million equity ounces of
gold at a total cash cost of $217 per ounce in 2001 versus 3.7 million equity
ounces at $197 per ounce in 2000. Gold sales from overseas increased to 2.2
million equity ounces at $128 per ounce in 2001 from 2.0 million ounces at a
total cash cost of $117 per ounce in 2000. The production level was impacted by
less tonnage mined in Nevada, lower ore grades in Nevada, Canada and Peru and
corresponding lower overall mill recovery rates in Nevada.
In 2001, Yanacocha in Peru sold 1.9 million ounces (983,000 equity ounces) of
gold, a 9 percent increase over 2000, at a total cash cost of $115 per ounce.
Yanacocha's first crushing and agglomeration facility for the La Quinua deposit
started up late in the third quarter and will continue to undergo commissioning
adjustments through the first half of 2002, gradually stepping up to its design
rate of 132,000 tons per day (120,000 metric tons per day) by the end of June.
Fourth quarter and full year production were slightly lower than targeted due to
slower leach cycle recoveries for gold and short-term bottlenecks in mining
fleet utilization and availability during the commissioning of the new crushing
facility. La Quinua is expected to reach production of one million ounces
annually in 2003 to help Yanacocha reach its production goal of 2.5 million
ounces annually in 2004.
Excellent operating performance at Batu Hijau in Indonesia provided $9.8 million
and $33 million in equity income in the fourth quarter and full year 2001,
respectively, despite a poor copper market. Total copper sales in 2001 totaled
$447.3 million with an average realized copper price per pound of $0.70, $0.12
less than in 2000. For the full year, copper sales increased by 22 percent to
639.9 million pounds (360.0 million equity pounds) at a
--------------------------------------------------------------------------------
2 of 19
cash cost of $0.36 per pound of copper, a 37 percent improvement over 2000.
Equity gold sales increased by 65 percent to 295,100 ounces from year 2000.
Mr. Murdy commented, "Batu Hijau is one of the largest and lowest cost copper
mines in the world. In 2001, it continued to demonstrate superb operating
proficiency that surpassed our production and cash costs targets. The increases
in copper and gold sold were the result of higher ore grades, an 18 percent
increase in tons mined and 15 percent higher mill throughput from the year
2000."
FINANCIAL HIGHLIGHTS
General and administrative expenses for 2001 were $61.2 million, a 4 percent
decrease from a year ago. Depreciation and depletion costs of $300.1 million
were 17 percent lower than in 2000, in line with lower production. Consistent
with the Company's no-hedging policy, in December 2001, Newmont effectively
closed out Battle Mountain's small hedge book, covering approximately 275,000
ounces, by entering into a series of equal, offsetting positions. This
transaction provided Newmont approximately $5 million in cash. During the third
quarter of 2001, Newmont also restructured its written call positions,
effectively eliminating any future mark-to-market volatility to its net income.
As a result of this restructuring, Newmont converted 2.35 million ounces of call
options into sales contracts requiring future physical delivery.
Capital expenditures in 2001 totaled $402 million. At Yanacocha, which is
consolidated at 100 percent, capital expenditures were $277 million, including
construction of La Quinua, leach pad expansion and mining fleet additions. Other
significant capital projects included $28 million for the Deep Post underground
development in Nevada, $19 million for heap leach pad expansion and associated
conveyor support facility at Zarafshan in Uzbekistan and $7 million for a new
heap leach operation at Kori Kollo in Bolivia. A portion of the capital spent in
2001 included advancement of mine equipment purchases for Yanacocha previously
scheduled for 2002.
Newmont had total debt of $1.3 billion, and a cash balance of $149.4 million at
year-end. Debt net of the Company's cash balance at year-end 2001 was unchanged,
resulting in a net debt to total capitalization of 40 percent.
RESERVES & EXPLORATION
Newmont reported equity proven and probable reserves of 59.6 million ounces of
gold, after production depletion, at year-end 2001, down from 66.3 million
ounces at year-end 2000, using a $300 per ounce long-term gold price. North
American equity reserves were 31.4 million ounces compared with 35.2 million
ounces a year ago. At Yanacocha, gold reserves totaled 34.2 million ounces (17.6
million equity ounces.)
Total company-wide reserves for copper were 6 billion equity pounds. Batu Hijau
had 9.8 billion pounds (5.5 billion equity pounds) of copper at the end of 2001,
roughly equivalent to year-end 2000 reserves.
Exploration and research expense in 2001 was reduced by 28 percent to $55.5
million as a result of a depressed gold market. At Yanacocha, the exploration
focus was on the complex and deep sulfide zones containing copper-gold
mineralization and the near-surface oxide targets for gold. These sulfide and
oxide programs completed approximately 300,000 feet (90,632 meters) in 354 drill
holes at Yanacocha.
Mr. Murdy said, "Our objective in 2002 at Yanacocha is to advance our
understanding of the geologic settings and material types of the mineralized
sulfide systems with a focus to locate higher grade copper-gold targets. We are
continuing to pursue the long-term potential that we see in the copper-gold and
gold mineralization and are pleased with the performance of this world class
mineral district. In addition, resource development projects in Nevada will
focus on new underground mining opportunities identified near Deep Post, Deep
Star, Carlin, Gold Quarry and Twin Creeks. Exploration drilling from surface and
underground platforms is designed to outline mineralization that would be
readily accessible from existing open pit or underground mines."
--------------------------------------------------------------------------------
3 of 19
2002 OUTLOOK
Looking ahead, Mr. Murdy said, "We are working diligently towards closing the
Normandy and Franco-Nevada transactions, which will almost double the market
capitalization of Newmont and provide the opportunity for further district
rationalization and consolidation. Updated estimated production and cost
forecasts will be provided as our integration efforts progress. We remain
focused on generating superior returns to our shareholders by creating the
premier gold investment vehicle with maximum upside gold price exposure." For
2002, on a stand-alone basis, forecasted production is 5.2 million ounces, 4
percent lower than 2001, at approximately the same cash cost per ounce as in
2001.
# # #
--------------------------------------------------------------------------------
4 of 19
FOR FULL FINANCIAL STATEMENTS AND SUPPLEMENTAL INFORMATION RELATING TO THIS NEWS
RELEASE, REFER TO NEWMONT'S WEB SITE AT WWW.NEWMONT.COM UNDER INVESTOR
RELATIONS/NEWS RELEASES. THE COMPANY'S CONFERENCE CALL IS SCHEDULED FOR TODAY
BEGINNING AT 1:00 P.M. EASTERN, 12:00 P.M. CENTRAL, 11:00 A.M. MOUNTAIN AND
10:00 A.M. PACIFIC.
TO PARTICIPATE
--------------
DIAL-IN NUMBER: 712-271-3230
LEADER: WENDY YANG
PASSWORD: NEWMONT
THE CONFERENCE CALL WILL ALSO BE SIMULTANEOUSLY CARRIED ON OUR WEB SITE UNDER
INVESTOR RELATIONS/ PRESENTATIONS AND WILL BE ARCHIVED THERE FOR A LIMITED TIME.
IMPORTANT NOTICE
Although the Normandy Board, subject to its fiduciary duties, has recommended
Newmont's offer to Normandy shareholders, Normandy has not provided unqualified
assistance to Newmont in making its offer. Among other things, Normandy has
refused to provide Newmont with certain financial information, and it has not
permitted its auditors to issue a consent in respect of financial information
relating to Normandy.
CAUTIONARY STATEMENT
This press release contains forward-looking information and statements about
Newmont Mining Corporation, Franco-Nevada Mining Corporation Limited, Normandy
Mining Limited and the combined company after completion of the transactions.
Forward-looking statements are statements that are not historical facts. These
statements include financial projections and estimates and their underlying
assumptions; statements regarding plans, objectives and expectations with
respect to future operations, products and services; and statements regarding
future performance. Forward-looking statements are generally identified by the
words "expects," "anticipates," "believes," "intends," "estimates" and similar
expressions. The forward-looking information and statements in this press
release are subject to various risks and uncertainties, many of which are
difficult to predict and generally beyond the control of Newmont, Franco-Nevada
and Normandy Mining, that could cause actual results to differ materially from
those expressed in, or implied or projected by, the forward-looking information
and statements. These risks and uncertainties include those discussed or
identified in the public filings with the U.S. Securities and Exchange
Commission made by Newmont and Normandy, and Franco-Nevada's filings with the
Ontario Securities Commission; risks and uncertainties with respect to the
parties' expectations regarding the timing, completion and accounting and tax
treatment of the transactions, the value of the transaction consideration,
production and development opportunities, conducting worldwide operations,
earnings accretion, cost savings, revenue enhancements, synergies and other
benefits anticipated from the transactions; and the effect of gold price and
foreign exchange rate fluctuations, and general economic conditions such as
changes in interest rates and the performance of the financial markets, changes
in domestic and foreign laws, regulations and taxes, changes in competition and
pricing environments, the occurrence of significant natural disasters, civil
unrest and general market and industry conditions.
ADDITIONAL INFORMATION AND WHERE TO FIND IT
In connection with the proposed transactions, Newmont Mining Corporation has
filed with the U.S. Securities and Exchange Commission a Registration Statement
on Form S-4 (which includes an Offer Document) and a Proxy Statement/Prospectus
on Schedule 14A. Investors and security holders are advised to read the Offer
Document and the Proxy Statement/Prospectus, which were mailed beginning on
January 11, 2002, because they contain important information. Investors and
security holders may obtain free copies of the Offer Document and the Proxy
Statement/Prospectus and other documents filed by Newmont with the Commission at
the Commission's web site at http://www.sec.gov. Free copies of the Offer
Document and the Proxy Statement/Prospectus and other filings made by Newmont or
Normandy with the Commission, may also be obtained from Newmont. Free copies of
Newmont's and Normandy's filings may be obtained by directing a request to
Newmont Mining Corporation, Attn: Investor Relations, 1700 Lincoln Street,
Denver, Colorado 80203, Telephone: (303) 863-7414. Copies of Franco-Nevada's
filings may be obtained at http://www.sedar.com.
--------------------------------------------------------------------------------
5 of 19
NEWMONT MINING CORPORATION
4TH QUARTER SUPPLEMENTAL INFORMATION: OPERATIONS SUMMARY
Equity production for fourth quarter of 2001 was 1.4 million ounces of gold at a
cash cost per ounce of $182 and a total production cost per ounce of $235.
During the 2001 quarter, North American operations produced 835,400 equity
ounces of gold at a total cash cost of $213 per ounce while gold equity
production from overseas operations totaled 533,000 ounces of gold at $129 per
ounce. This is compared to 1.18 million equity ounces produced at $186 per ounce
for North America and 624,100 equity ounces at $116 per ounce for overseas
operations in the fourth quarter of 2000. North American operations accounted
for 61 percent of production with the remainder from overseas.
In Nevada, fourth quarter 2001 production was 715,100 ounces of gold, 30 percent
lower than the 2000 quarter due to a 21 percent decrease in tons mined and lower
ore grades from a year earlier. This was partially offset by a 19 percent
increase in autoclave throughput at the Lone Tree mill, while maintaining an 95
percent autoclave recovery rate. At the Deep Post underground mine, tons mined
were 79,000 at a grade of 0.991 ounce of gold per ton, producing 78,000 ounces,
during the 2001 quarter. In its first year of production, Deep Post produced
227,000 ounces in 2001. Nevada's total cash cost of $219 per ounce and total
production cost of $266 per ounce, compared with $184 per ounce and $238 per
ounce, respectively, from a year ago. Higher per ounce costs in the recent
quarter compared with a year ago were the result of lower ounces produced.
At Yanacocha, slower leach cycle recoveries impacted gold production of 522,900
ounces (268,500 equity ounces) in the 2001 quarter, 4 percent less than the 2000
quarter. Lower production affected total cash costs in the 2001 quarter of $117
per ounce. Tons placed on the leach pads increased by 30 percent from a year
ago. However, this was less than anticipated as mining rate of 485,000 tons per
day (tpd) was short of the targeted 550,000 tons per day. This was due to
short-term bottlenecks in mechanical availability and utilization of the mining
fleet as start-up adjustments were made to the new La Quinua crushing facility.
During the fourth quarter of 2001, the Batu Hijau mine continued its an
outstanding performance, producing 137.3 million pounds (77.2 million equity
pounds) of copper, and 82,200 ounces of gold (46,300 equity ounces) at a cash
cost of $0.38 per pound after gold credits. Higher production was due to a
one-third increase in the mining rate to 550,000 tons per day over the 2000
quarter, as a result of increased efficiency, dry weather and shorter haul
distances. In addition, there was an enhanced mill throughput rate of 142,000
tons per day in the fourth quarter of 2001, a 13 percent improvement over the
2000 quarter, and 8 percent above the design rate of 132,000 tons per day. These
factors offset a slightly lower mill recovery rate of 85 percent related to the
lower copper grade of 0.61 percent and gold grade 0.008 ounce of gold per ton,
which had been expected in the sequencing of the mine plan. The first half of
2002 will see similar grade levels as in the fourth quarter.
Among the other operations in the 2001 fourth quarter, Kori Kollo in Bolivia
produced 25 percent more gold than the 2000 quarter totaling 85,100 ounces of
gold (75,000 equity ounces), including 17,100 ounces (15,100 equity ounces) from
heap leaching, which began in the third quarter of 2001. Cash cost per ounce was
$139 and production cost per ounce was $206 during the recent quarter. For the
full year 2001, Kori Kollo significantly exceeded its production and cost
targets, producing 305,600 ounces (269,000 equity ounces), including 24,500
ounces (21,600 equity ounces) from heap leaching, at a cash cost of $158 per
ounce and total production cost of $229 per ounce. Compared with 2000, this
performance demonstrated a 12 percent increase in production, 21 percent lower
cash cost and a 24 percent lower total production cost.
At the maturing Golden Giant underground mine in the Hemlo district in Canada,
tons mined dropped 12 percent to 264,000 tons at an 8 percent lower grade of
0.25 ounce of gold per ton in the 2001 quarter from a year ago. As a result,
Golden Giant's gold production was 16 percent lower at 65,600 ounces at $182 per
ounce.
--------------------------------------------------------------------------------
6 of 19
NEWMONT MINING CORPORATION
FINANCIAL HIGHLIGHTS
-----------------------------------------------------------------------------------------------------------------------------
(Unaudited) THREE MONTHS ENDED DEC. 31, YEARS ENDED DEC. 31,
(in millions, except per share) 2001 2000 2001 2000
-----------------------------------------------------------------------------------------------------------------------------
Revenues $ 449.7 $ 531.6 $ 1,664.1 $ 1,819.8
-----------------------------------------------------------------------------------------------------------------------------
Components of net loss applicable to common shares:
Net income from operations $ 31.7 $ 34.3 $ 13.7 $ 7.9
Noncash gain/amortization on call/put options, net of tax - 7.4 1.1 5.0
Cumulative effect of accounting change, net of tax and minority interest - - - (12.6)
Expenses for acquisition settlement, net of tax - - - (27.4)
Loss on marketable securities of Lihir - (23.9) - (23.9)
Income tax benefit 15.2 - 24.8 -
Write-down of assets, net of tax (26.7) (44.4) (26.7) (44.4)
Merger and restructuring expenses, net of tax - (6.9) (43.7) (6.9)
-----------------------------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common shares $ 20.2 $ (33.5) $ (30.8) $ (102.3)
-----------------------------------------------------------------------------------------------------------------------------
Per share:
Net income from operations $ 0.16 $ 0.18 $ 0.07 $ 0.04
Noncash gain/amortization on call/put options, net of tax - 0.04 - 0.03
Cumulative effect of accounting change, net of tax and minority interest - - - (0.07)
Expenses for acquisition settlement, net of tax - - - (0.14)
Loss on marketable securities of Lihir - (0.12) - (0.12)
Income tax benefit 0.08 - 0.13 -
Write-down of assets, net of tax (0.14) (0.23) (0.14) (0.23)
Merger and restructuring expenses, net of tax - (0.04) (0.22) (0.04)
-----------------------------------------------------------------------------------------------------------------------------
Net income (loss) applicable to common shares $ 0.10 $ (0.17) $ (0.16) $ (0.53)
-----------------------------------------------------------------------------------------------------------------------------
Note: This information should be read in conjunction with the financial
statements included in SEC Form 10-K.
--------------------------------------------------------------------------------
7 of 19
NEWMONT MINING CORPORATION
CONSOLIDATED OPERATIONS INFORMATION
--------------------------------------------------------------------------------------------------------------------
(Unaudited) THREE MONTHS ENDED DEC. 31, YEARS ENDED DEC. 31,
(in millions, except per share) 2001 2000 2001 2000
--------------------------------------------------------------------------------------------------------------------
Sales $ 445.2 $ 525.8 $ 1,656.1 $ 1,809.5
Dividends, interest and other 4.5 5.8 8.0 10.3
--------------------------------------------------------------------------------------------------------------------
Costs applicable to sales 284.0 307.9 1,093.0 1,065.5
Depreciation and depletion 81.3 100.9 300.1 359.5
Exploration and research 12.0 18.5 55.5 77.4
General and administrative 16.7 13.2 61.2 63.6
Interest, net of capitalized interest 23.8 23.5 86.4 94.6
Other expenses 3.3 8.7 11.5 34.6
--------------------------------------------------------------------------------------------------------------------
Income tax benefit (expense) excluding merger/noncash items 16.6 (3.0) (2.4) (8.1)
Minority interest (21.4) (24.5) (65.8) (91.2)
Equity income (loss) in Batu Hijau 9.8 4.8 33.0 (9.9)
Preferred stock dividends (1.9) (1.9) (7.5) (7.5)
--------------------------------------------------------------------------------------------------------------------
Earnings before merger/noncash items 31.7 34.3 13.7 7.9
--------------------------------------------------------------------------------------------------------------------
Merger and noncash items, net of tax (11.5) (67.8) (44.5) (97.6)
Cumulative effect of accounting change, net of tax - - - (12.6)
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
NET INCOME (LOSS) TO COMMON SHARES $ 20.2 $ (33.5) $ (30.8) $ (102.3)
NET INCOME (LOSS) PER COMMON SHARE, BASIC AND DILUTED $ 0.10 $ (0.17) $(0.16) $ (0.53)
Earnings before merger/noncash items per common share $ 0.16 $ 0.18 $ 0.07 $0.04
Weighted average shares outstanding 196.1 192.8 195.1 192.2
--------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------------------------------------
Consolidated gold sales (000 ozs.) 1,595.2 1,915.0 6,104.0 6,437.0
EQUITY GOLD SALES (000 OZS.) 1,395.3 1,741.4 5,430.2 5,727.8
TOTAL CASH COST PER EQUITY OUNCE $ 182 $ 164 $ 184 $ 170
Total cost per equity ounce $ 235 $ 221 $ 236 $ 231
Average realized price per equity ounce $ 279 $ 274 $ 271 $ 281
--------------------------------------------------------------------------------------------------------------------
Equity copper production (millions of lbs.) 77.2 94.7 369.5 292.9
EQUITY COPPER SALES (MILLIONS OF LBS.) 77.5 106.1 360.0 294.2
CASH COST PER EQUITY POUND $ 0.38 $ 0.46 $ 0.36 $ 0.57
Average realized copper price per lb. $ 0.66 $ 0.78 $ 0.70 $ 0.82
--------------------------------------------------------------------------------------------------------------------
Note: This information should be read in conjunction with the financial
statements included in SEC Form 10-K.
--------------------------------------------------------------------------------
8 of 19
NEWMONT MINING CORPORATION
CONSOLIDATED CASH FLOW INFORMATION
--------------------------------------------------------------------------------
(Unaudited) YEARS ENDED DECEMBER 31,
(in millions) 2001 2000
--------------------------------------------------------------------------------
Net loss $ (23.3) $ (94.9)
Noncash adjustments:
Depreciation, depletion and amortization 349.1 462.5
Deferred income taxes (85.0) (69.2)
Merger and restructuring costs 14.7 -
Write-down of assets 41.0 58.4
Stock issued for acquisition settlement - 40.0
Cumulative effect of accounting change - 12.6
Minority interest and other items 25.6 90.7
--------------------------------------------------------------------------------
322.1 500.1
Changes in working capital 59.2 67.7
--------------------------------------------------------------------------------
NET CASH PROVIDED BY OPERATING ACTIVITIES 381.3 567.8
--------------------------------------------------------------------------------
Capital expenditures (401.6) (420.9)
Other investing activities 4.9 (123.1)
Net borrowings 70.0 (36.6)
Dividends (31.0) (27.6)
Other financing activities 48.2 (4.8)
--------------------------------------------------------------------------------
Change in cash and cash equivalents 71.8 (45.2)
Cash and cash equivalents at beginning of period 77.6 122.8
--------------------------------------------------------------------------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 149.4 $ 77.6
--------------------------------------------------------------------------------
CONSOLIDATED BALANCE SHEET INFORMATION
--------------------------------------------------------------------------------
(Unaudited) YEARS ENDED DECEMBER 31,
(in millions) 2001 2000
--------------------------------------------------------------------------------
ASSETS
Cash and cash equivalents $ 149.4 $ 77.6
Inventories 384.2 361.0
Other current assets 175.9 173.6
--------------------------------------------------------------------------------
709.5 612.2
Property, plant and mine development, net 2,207.0 2,190.5
Investment in Batu Hijau 559.8 527.6
Other assets 586.1 586.5
--------------------------------------------------------------------------------
TOTAL ASSETS $ 4,062.4 $ 3,916.8
--------------------------------------------------------------------------------
LIABILITIES
Current portion of long-term debt 192.2 80.4
Other current liabilities 293.7 318.2
Long-term debt 1,089.7 1,129.4
Other long-term liabilities 755.3 697.4
--------------------------------------------------------------------------------
TOTAL LIABILITIES 2,330.9 2,225.4
--------------------------------------------------------------------------------
MINORITY INTEREST 251.5 191.3
STOCKHOLDERS' EQUITY 1,480.0 1,500.1
--------------------------------------------------------------------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 4,062.4 $ 3,916.8
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
9 of 19
NEWMONT MINING CORPORATION
NORTH AMERICAN OPERATIONS
NEVADA CANADA OTHER
------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, 2001 2000 2001 2000 2001 2000
TONS MINED (000 DRY SHORT TONS):
Open-Pit 33,583 42,920 n/a n/a 3,063 8,583
Underground 295 220 410 465 n/a n/a
TONS MILLED/PROCESSED (000):
Oxide 1,522 1,585 402 428 n/a n/a
Refactory 2,463 2,272 n/a n/a n/a n/a
Leach 7,194 5,266 n/a n/a 885 3,471
AVERAGE ORE GRADE:
Oxide 0.109 0.115 0.239 0.257 n/a n/a
Refactory 0.229 0.377 n/a n/a n/a n/a
Leach 0.031 0.035 n/a n/a 0.025 0.021
AVERAGE MILL RECOVERY RATE:
Oxide 70.0% 75.3% 94.9% 95.5% n/a n/a
Refactory 88.3% 91.9% n/a n/a n/a n/a
EQUITY OUNCES PRODUCED (000):
Oxide 127.0 120.3 94.0 107.4 n/a n/a
Refactory 447.4 777.4 n/a n/a n/a n/a
Leach 140.7 125.1 n/a n/a 26.3 45.3
------------------------------------------------------------------------------------------------------------------------------------
Total 715.1 1,022.8 94.0 107.4 26.3 45.3
EQUITY OUNCES SOLD (000): 716.6 1,027.3 112.5 92.1 26.3 45.3
TOTAL N. AMERICAN
------------------------------------------------------------------------------------------------------------------------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 190 $ 170 $ 178 $ 174 $ 190 $ 172
Capitalizing mining & other 25 10 1 - 19 9
------------------------------------------------------------------------------------------------------------------------------------
Cash operating costs 215 180 179 174 209 181
Royalties and production taxes 4 4 - 6 4 5
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 219 $ 184 $ 179 $ 180 $ 213 $ 186
Reclamation and mine closure costs 4 2 6 6 4 2
------------------------------------------------------------------------------------------------------------------------------------
Total costs applicable to sales 223 186 185 186 217 188
Depreciation and amortization 43 52 63 78 46 54
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 266 $ 238 $ 248 $ 264 $ 263 $ 242
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
10 of 19
NEWMONT MINING CORPORATION
OVERSEAS OPERATIONS
ZARAFSHAN-NEWMONT
YANACOCHA, PERU KORI KOLLO, BOLIVIA UZBEKISTAN
------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, 2001 2000 2001 2000 2001 2000
------------------------------------------------------------------------------------------------------------------------------------
TONS MINED (000 DRY SHORT TONS) 44,607 37,463 5,370 4,493 n/a n/a
TONS MILLED/PROCESSED (O00):
Leach 26,801 20,657 1,692 n/a 3,677 3,849
Mill n/a n/a 1,841 1,951 n/a n/a
AVERAGE ORE GRADE 0.025 0.033 0.041 0.057 0.047 0.042
AVERAGE MILL RECOVERY RATE n/a n/a 61.5% 60.7% n/a n/a
OUNCES PRODUCED (000) 522.9 544.2 85.1 68.3 109.6 134.5
EQUITY OUNCES PRODUCED (000) 268.5 279.5 75.0 60.0 54.7 67.3
EQUITY OUNCES SOLD (000) 263.6 255.9 73.7 59.8 59.4 68.0
------------------------------------------------------------------------------------------------------------------------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 115 $ 90 $ 143 $ 203 $ 134 $ 135
Capitalized mining & other (2) (2) (4) - 2 2
------------------------------------------------------------------------------------------------------------------------------------
Cash operating costs 113 88 139 203 136 137
Royalties and production taxes 4 5 - - - -
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 117 $ 93 $ 139 $ 203 $ 136 $ 137
Reclamation and mine closure costs 3 3 5 16 1 1
------------------------------------------------------------------------------------------------------------------------------------
Total costs applicable to sales 120 96 144 219 137 138
Depreciation and amortization 51 43 62 84 25 47
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 171 $ 139 $ 206 $ 303 $ 162 $ 185
------------------------------------------------------------------------------------------------------------------------------------
MINAHASA, INDONESIA NERA/NANCY, AUSTRALIA BATU HIJAU, INDONESIA
------------------------------------------------------------------------------------------------------------------------------------
THREE MONTHS ENDED DECEMBER 31, 2001 2000 2001 2000 2001 2000
------------------------------------------------------------------------------------------------------------------------------------
TONS MINED (000 DRY SHORT TONS) 333 1,647 182 158 50,640 37,973
TONS MILLED/PROCESS (000):
Leach 205 236 n/a n/a n/a n/a
Mill 167 209 187 170 13,041 11,572
AVERAGE ORE GRADE 0.152 0.309 0.353 0.364 0.008 0.015
AVERAGE MILL RECOVERY RATE 91.7% 92.4% 96.7% 96.7% 74.9% 82.8%
OUNCES PRODUCED (000) 59.0 115.3 63.6. 59.9 82.2 128.0
EQUITY OUNCES PRODUCED (000) 56.7 115.3 31.8 30.0 46.3 72.0
EQUITY OUNCES SOLD (000) 66.1 106.1 35.1 27.8 59.9 77.0
------------------------------------------------------------------------------------------------------------------------------------
TOTAL INTERNATIONAL
----------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 170 $ 55 $ 88 $ 83 $ 127 $ 102
Capitalized mining & other 3 56 - - (1) 11
------------------------------------------------------------------------------------------------------------------------------------
Cash operating costs 173 111 88 83 126 113
Royalties and production taxes 2 2 8 6 3 3
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 175 $ 113 $ 96 $ 89 $ 129 $ 116
Reclamation and mine closure costs 8 2 5 (3) 4 3
------------------------------------------------------------------------------------------------------------------------------------
Total costs applicable to sales 183 115 101 86 133 119
Depreciation and amortization 108 63 35 39 56 52
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 291 $ 178 $ 136 $ 125 $ 189 $ 171
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
11 of 19
NEWMONT MINING CORPORATION
NORTH AMERICAN OPERATIONS
NEVADA CANADA OTHER
------------------------------------------------------------------------------------------------------------------------------------
Twelve months ended December 31, 2001 2000 2001 2000 2001 2000
------------------------------------------------------------------------------------------------------------------------------------
TONS MINED (000 DRY SHORT TONS):
Open-Pit 139,000 200,228 n/a n/a 19,030 36,465
Underground 1,123 943 1,607 1,762 n/a n/a
TONS MILLED/PROCESSED (000):
Oxide 5,395 5,793 1,605 1,720 n/a n/a
Refractory 9,335 8,806 n/a n/a n/a n/a
Leach 24,448 25,490 n/a n/a 7,861 16,078
AVERAGE ORE GRADE:
Oxide 0.108 0.086 0.236 0.259 n/a n/a
Refractory 0.226 0.288 n/a n/a n/a n/a
Leach 0.033 0.036 n/a n/a 0.028 0.018
AVERAGE MILL RECOVERY RATE:
Oxide 70.5% 81.0% 95.2% 95.6% n/a n/a
Refractory 89.0% 90.2% n/a n/a n/a n/a
EQUITY OUNCES PRODUCED (000):
Oxide 433.2 400.2 348.7 426.9 n/a n/a
Refractory 1,749.3 2,072.6 n/a n/a n/a n/a
Leach 514.4 571.2 n/a n/a 147.3 180.9
------------------------------------------------------------------------------------------------------------------------------------
Total 2,696.9 3,044.0 348.7 426.9 147.3 180.9
EQUITY OUNCES SOLD (000) 2,703.2 3,047.9 373.1 490.0 147.3 180.8
------------------------------------------------------------------------------------------------------------------------------------
TOTAL N. AMERICAN
------------------------------------------------------------------------------------------------------------------------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 207 $ 192 $ 187 $ 155 $ 204 % 188
Capitalized mining and other 11 7 1 - 9 4
------------------------------------------------------------------------------------------------------------------------------------
Cash operating costs 218 199 188 155 213 192
Royalties and production taxes 4 4 4 5 4 5
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 222 $ 203 $ 192 $ 160 $ 217 $ 197
Reclamation and mine closure costs 4 3 6 5 5 3
------------------------------------------------------------------------------------------------------------------------------------
Total costs applicable to sales 226 206 198 165 222 200
Depreciation and amortization 43 52 65 77 46 57
------------------------------------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 269 $ 258 $ 263 $ 242 $ 268 $ 257
------------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
12 of 19
NEWMONT MININT CORPORATION
OVERSEAS OPERATIONS
ZARAFSHAN-NEWMONT
YANACOCHA, PERU KORI KOLLO, BOLIVIA UZBEKISTAN
TWELVE MONTHS ENDED DECEMBER 31, 2001 2000 2001 2000 2001 2000
-----------------------------------------------------------------------------------------------------------
TONS MINED (000 dry short tons) 155,707 131,916 18,444 18,616 n/a n/a
TONS MILLED/PROCESSED:
Leach 84,738 83,024 3,853 n/a 15,354 15,540
Mill n/a n/a 7,582 7,753 n/a n/a
AVERAGE ORE GRADE 0.030 0.031 0.046 0.055 0.044 0.046
AVERAGE MILL RECOVERY RATE n/a n/a 61.8% 62.4% n/a n/a
OUNCES PRODUCED (000) 1,902.5 1,795.4 305.6 273.9 433.5 498.8
EQUITY OUNCES PRODUCED (000) 976.9 921.9 269.0 241.0 216.7 249.4
EQUITY OUNCES SOLD (000) 983.1 901.2 274.8 247.7 222.0 251.4
-----------------------------------------------------------------------------------------------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 113 $ 85 $ 163 $ 200 $ 133 $ 126
Capitalized mining & other (1) (2) (5) - 3 3
-----------------------------------------------------------------------------------------------------------
Cash operating costs 112 83 158 200 136 129
Royalties and production taxes 3 4 - - - -
-----------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 115 $ 87 $ 158 $ 200 $ 136 $ 129
Reclamation and mine closure costs 3 3 5 15 1 1
-----------------------------------------------------------------------------------------------------------
Total costs applicable to sales 118 90 163 215 137 130
Depreciation and amortization 50 47 66 86 44 53
-----------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 168 $ 137 $ 229 $ 301 $ 181 $ 183
-----------------------------------------------------------------------------------------------------------
BATU HIJAU,
MINAHASA, INDONESIA VERA/NANCY, AUSTRALIA INDONESIA
TWELVE MONTHS ENDED DECEMBER 31, 2001 2000 2001 2000 2001 2000
-----------------------------------------------------------------------------------------------------------
TONS MINED (000 DRY SHORT TONS) 5,586 6,766 736 650 183,991 156,223
TONS MILLED/PROCESSED:
Leach 1,572 1,732 n/a n/a n/a n/a
Mill 716 753 722 681 48,358 42,131
AVERAGE ORE GRADE 0.176 0.193 0.351 0.350 0.013 0.010
AVERAGE MILL RECOVERY RATE 91.4% 92.4% 96.9% 96.8% 80.3% 77.4%
OUNCES PRODUCED (000) 326.0 364.3 247.6 231.3 533.6 320.1
EQUITY OUNCES PRODUCED (000) 323.7 364.3 123.8 115.7 300.2 180.1
EQUITY OUNCES SOLD (000) 341.5 354.2 126.0 112.1 295.1 178.4
-----------------------------------------------------------------------------------------------------------
TOTAL INTERNATIONAL
---------------------------
PRODUCTION COSTS PER OUNCE:
Direct mining and production costs $ 125 $ 111 $ 97 $ 93 $ 123 $ 112
Capitalized mining & other 14 19 1 - 2 3
-----------------------------------------------------------------------------------------------------------
Cash operating costs 139 130 98 93 125 115
Royalties and production taxes 3 3 7 6 3 2
-----------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS $ 142 $ 133 $ 105 $ 99 $ 128 $ 117
Reclamation and mine closure costs 3 2 1 1 3 5
-----------------------------------------------------------------------------------------------------------
Total costs applicable to sales 145 135 106 100 131 122
Depreciation and amortization 65 71 34 39 53 57
-----------------------------------------------------------------------------------------------------------
TOTAL PRODUCTION COSTS $ 210 $ 206 $ 140 $139 $ 184 $ 179
-----------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
13 of 19
NEWMONT MINING CORPORATION
BATU HIJAU COPPER PRODUCTION AND COSTS
--------------------------------------------------------------------------------
THREE MONTHS ENDED YEARS ENDED DEC.
DEC.31, 31,
--------------------------------------------------------------------------
2001 2000 2001 2000
Dry tons processed (000)
13,041 11,572 48,358 42,131
Average copper grade 0.61% 0.84% 0.75% 0.72%
Average recovery rate 84.8% 90.8% 89.2% 87.5%
Copper pounds produced (000)
137,297 168,404 656,954 520,781
Equity copper pounds produced
(000) 77,230 94,727 369,537 292,939
Equity copper pounds sold
(000) 77,464 106,131 359,955 294,182
--------------------------------------------------------------------------
Co-Product
-------------------------------
THREE MONTHS ENDED DEC. 31, BY-PRODUCT Copper Gold Total
2001
----------------------------------------- -------------------------------
Revenue $51,357 $51,357 $16,214 $67,571
Cash production costs 46,020 34,977 11,043 46,020
By-product credits (16,965)
(571) (180) (751)
---------- --------- --------- ---------
Total Cash Costs 29,055 34,406 10,863 45,269
Noncash costs 16,895 12,841 4,054 16,895
--------- --------- ---------
----------
Total Production $45,950 $47,247 $14,917 $62,164
Costs
========== -------------------------------
POUNDS OF COPPER SOLD (000)
77,464
Ounces of gold sold (000)
59.9
---------- --------------------
REPORTED CASH COST PER LB./OZ. $0.38 $0.44 $181
Reported noncash cost per 68
lb./oz/ 0.22 0.17
----------
TOTAL COSTS PER LB./OZ. $0.60 $0.61 $249
========== --------------------
--------------------------------------------------------------------------
Co-Product
-------------------------------
YEAR ENDED DEC. 31, 2001 BY-PRODUCT Copper Gold Total
----------------------------------------- -------------------------------
Revenue $251,601 $251,601 $78,198 $329,799
Cash production costs 210,957 160,937 50,020 210,957
By-product credits (81,709) (2,679) (832) (3,511)
----------
--------- --------- ---------
Total Cash Costs 129,248 158,258 49,188 207,446
Noncash costs 53,680 40,952 12,728 53,680
--------- --------- ---------
----------
Total Production $182,928 $199,210 $61,916 $261,126
Costs
========== -------------------------------
POUNDS OF COPPER SOLD (000)
359,955
Ounces of gold sold (000)
295.1
---------- --------------------
REPORTED CASH COST PER LB./OZ. $0.36 $0.44 $167
Reported noncash cost per 43
lb./oz/ 0.15 0.11
----------
TOTAL COSTS PER LB./OZ. $0.51 $0.55 $210
---------- --------------------
--------------------------------------------------------------------------------
14 of 19
NEWMONT MINING CORPORATION
SUPPLEMENTAL COMMODITY FINANCIAL INSTRUMENT INFORMATION
Newmont remains one of the least hedged companies in the gold industry.
Consistent with the Company's no-hedging policy, in December 2001, Newmont
effectively closed out Battle Mountain's small hedge book, covering
approximately 275,000 ounces, by entering into a series of equal, offsetting
positions. This transaction provided Newmont approximately $5 million in cash.
--------------------------------------------------------------------------------
Prepaid Forward Price-Capped Contracts
--------------- ----------------------
Production Total Total
Year Notional Price Price Notional
Quantity Floor Cap Quantity Strike
--------------------------------------------------------------------------------
2001
2002
2003
2004
2005 161,111* $300 $380 500,000 $350
2006 161,111* $300 $380
2007 161,111* $300 $380
2008 1,000,000 $384
2009 600,000 $381
2011 250,000 $392
Total 483,333 $300 $380 2,350,000 $377
--------------------------------------------------------------------------------
*Associated with these prepaid forward sales is a requirement to deliver 35,900
ounces per year through 2006 and 17,950 in 2007. These deliveries, however, have
been offset with simultaneously executed forward purchase contracts at prices
increasing from $263 per ounce beginning in 2000 to $354 per ounce in 2007.
--------------------------------------------------------------------------------
15 of 19
NEWMONT MINING CORPORATION
GOLD PROVEN AND PROBABLE RESERVES - U.S. UNITS
----------------------------------------------------------------------------------------------------------------------------
Deposits/Districts December 31, 2001 December 31, 2000
------------------------------------------------------------------------------
Newmont (100%) Newmont (100%) Newmont
Share share Share
------------------------------------------------------------------------------
(%) Tonnage Grade Ounces Ounces Tonnage Grade Ounces Ounces
(000 tons) (oz/ton) (000) (000) (000 tons) (oz/ton) (000) (000)
----------------------------------------------------------------------------------------------------------------------------
North America
Nevada
Nevada Open Pit
Carlin North 100.00% 32,612 0.044 1,428 1,428 33,856 0.041 1,402 1,402
Carlin South 100.00% 61,335 0.062 3,829 3,829 75,168 0.059 4,426 4,426
Carlin Rain District 100.00% 13,455 0.026 344 344 13,455 0.026 344 344
Twin Creeks 100.00% 57,443 0.089 5,088 5,088 75,199 0.086 6,436 6,436
Lone Tree Complex 100.00% 29,247 0.065 1,893 1,893 40,847 0.060 2,464 2,464
Phoenix 100.00% 174,177 0.034 5,991 5,991 174,177 0.034 5,991 5,991
Total Nevada Open Pit 368,269 0.050 18,573 18,573 412,702 0.051 21,063 21,063
Nevada Underground
Chukar Footwall 100.00% 278 0.49 138 138
Carlin North Area (incl. 100.00% 10,854 0.56 6,097 6,097 11,324 0.58 6,597 6,597
Deep Post)
Carlin Rain District 100.00% 21 0.24 5 5 308 0.27 82 82
Total Nevada Underground 11,153 0.56 6,240 6,240 11,632 0.57 6,679 6,679
Stockpiles and In-Process 100.00% 75,378 0.055 4,143 4,143 92,502 0.049 4,518 4,518
............................................................................................................................
Total Nevada 454,800 0.064 28,956 28,956 516,836 0.062 32,260 32,260
............................................................................................................................
Other North America
Mesquite, California 100.00% 8,424 0.014 118 118 13,689 0.019 263 263
Golden Giant, Ontario 100.00% 3,560 0.29 1,042 1,042 4,779 0.29 1,369 1,369
Holloway, Ontario (1) 89.35% 3,775 0.19 718 641 4,389 0.20 858 758
La Herradura, Mexico 44.00% 47,326 0.030 1,423 626 49,754 0.026 1,306 575
............................................................................................................................
Total Other North America 63,085 0.052 3,301 2,427 72,611 0.052 3,796 2,965
----------------------------------------------------------------------------------------------------------------------------
Total North America 517,885 0.062 32,257 31,383 589,447 0.061 36,056 35,225
----------------------------------------------------------------------------------------------------------------------------
South America
Minera Yanacocha, Peru 51.35%
Carachugo/Chaquicocha 51.35% 76,987 0.039 2,993 1,537 141,460 0.033 4,732 2,430
Maqui Maqui 51.35% 7,589 0.025 192 98
San Jose 51.35% 6,484 0.021 139 71 23,388 0.019 453 233
Cerro Yanacocha 51.35% 486,001 0.027 13,045 6,699 534,946 0.026 14,058 7,219
La Quinua(and El Tapado) 51.35% 456,766 0.027 12,533 6,436 455,522 0.026 12,039 6,182
Cerro Negro 51.35% 19,494 0.032 631 324 23,976 0.028 682 350
Cerro Qulish 51.35% 137,736 0.027 3,700 1,900 118,888 0.027 3,251 1,669
In Process 51.35% 34,621 0.033 1,132 581 29,749 0.039 1,146 588
............................................................................................................................
Total Minera Yanacocha 1,218,089 0.028 34,173 17,548 1,335,518 0.027 36,553 18,769
............................................................................................................................
Kori Kollo, Bolivia 88.00% 21,745 0.032 698 614 30,348 0.038 1,148 1,010
----------------------------------------------------------------------------------------------------------------------------
Total South America 1,239,835 0.028 34,871 18,162 1,365,866 0.028 37,701 19,779
----------------------------------------------------------------------------------------------------------------------------
Australasia
Pajingo (Vera/Nancy) 50.00% 2,304 0.39 907 453 2,126 0.45 959 480
----------------------------------------------------------------------------------------------------------------------------
Total Australasia 2,304 0.39 907 453 2,126 0.45 959 480
----------------------------------------------------------------------------------------------------------------------------
Asia
Zarafshan-Newmont, Uzbekistan 50.00% 154,934 0.042 6,523 3,261 169,468 0.042 7,158 3,579
Minahasa, Indonesia (2) 94.00% 1,592 0.15 236 222 4,625 0.15 699 670
Batu Hijau, Indonesia-Gold 56.25% 1,000,118 0.011 10,920 6,143 944,460 0.012 11,721 6,593
----------------------------------------------------------------------------------------------------------------------------
Total Asia (3) 1,156,644 0.015 17,679 9,626 1,118,553 0.018 19,578 10,842
----------------------------------------------------------------------------------------------------------------------------
Total Worldwide - Gold (4) 2,916,668 0.029 85,714 59,624 3,075,992 0.031 94,294 66,326
----------------------------------------------------------------------------------------------------------------------------
--------------------------------------------------------------------------------
16 of 19
NEWMONT MINING CORPORATION
COPPER PROVEN AND PROBABLE RESERVES - U.S. UNITS
----------------------------------------------------------------------------------------------------------------------------
Deposits/Districts December 31, 2001 December 31, 2000
------------------------------------------------------------------------------
Copper Newmont (100%) Newmont (100%) Newmont
Share Share Share
------------------------------------------------------------------------------
(%) Tonnage Grade Copper Copper Tonnage Grade Copper Copper
(000 tons) (Cu%) (million (million (000 tons)(Cu%) (million (million
pounds) pounds) pounds) pounds)
----------------------------------------------------------------------------------------------------------------------------
Phoenix, Nevada-Copper 100.0% 156,323 0.17% 515 515 156,323 0.17% 515 515
Batu Hijau, Indonesia-Copper (3) 56.25% 1,000,118 0.49% 9,749 5,484 944,460 0.53% 9,964 5,605
----------------------------------------------------------------------------------------------------------------------------
Total Worldwide - Copper 1,156,441 0.44% 10,264 5,999 1,100,783 0.48% 10,479 6,120
----------------------------------------------------------------------------------------------------------------------------
(1) Percentage reflects Newmont's equity interest in remaining reserves. In
2000, this percentage was 88.3%.
(2) Percentage reflects Newmont's economic interest in remaining reserves. In
2000, this percentage was 95.9%.
(3) Percentage reflects Newmont's economic interest in remaining reserves,
unchanged from 2000.
(4) Included in the reserves are 680,794 ounces of gold committed under a
pre-paid forward sales contract.
--------------------------------------------------------------------------------
17 of 19
NEWMONT MINING CORPORATION
GOLD MINERALIZED MATERIAL NOT IN RESERVE -- U.S. UNITS
==========================================================================================================
GOLD DEPOSITS/DISTRICTS | NEWMONT | DECEMBER 31, 2001 | DECEMBER 31, 2000 (1)
| SHARE | ----------------------------------------------------------
| (%) | (100%) | (100%)
| | ----------------------------------------------------------
| | TONNAGE GRADE | TONNAGE GRADE
| | (000 TONS) (OZ/TON) | (000 TONS) (OZ/TON)
==========================================================================================================
NORTH AMERICA
NEVADA
Nevada Open Pit
Carlin North 100.00% 12,975 0.039 24,161 0.033
Carlin South 100.00% 24,556 0.028 8,764 0.091
Carlin Rain District 100.00% 1,275 0.048 1,275 0.047
Twin Creeks 100.00% 69,943 0.056 74,950 0.054
Lone Tree Complex 100.00% 7,931 0.032 7,429 0.050
Phoenix 100.00% 73,810 0.026 72,220 0.026
TOTAL NEVADA OPEN PIT 190,490 0.039 188,799 0.042
Nevada Underground
Chukar Footwall 100.00% 115 0.46 352 0.52
Carlin North Area
(incl. Deep Post) 100.00% 2,078 0.55 1,963 0.52
Carlin Rain District 100.00% 212 0.31
Rosebud 50.00% 236 0.33
TOTAL NEVADA UNDERGROUND 2,193 0.55 2,763 0.48
STOCKPILES AND IN-PROCESS 100.00% 37,572 0.045 46,017 0.044
----------------------------------------------------------------------------------------------------------
TOTAL NEVADA 230,255 0.044 237,579 0.048
----------------------------------------------------------------------------------------------------------
OTHER NORTH AMERICA
Mesquite, California 100.00% 51,522 0.019 51,522 0.019
Holloway, Ontario (2) 89.35% 1,434 0.19 1,434 0.20
La Herradura, Mexico 44.00% 18,000 0.030 16,649 0.032
Mezcala, Sonora 44.00% 69,464 0.026 69,464 0.026
----------------------------------------------------------------------------------------------------------
TOTAL OTHER NORTH AMERICA 140,420 0.026 139,069 0.026
----------------------------------------------------------------------------------------------------------
TOTAL NORTH AMERICA 370,675 0.037 376,648 0.040
==========================================================================================================
SOUTH AMERICA
MINERA YANACOCHA, PERU 51.35%
OXIDE GOLD LEACH DEPOSITS
Carachugo/Chaquicocha 51.35% 5,810 0.035 8,353 0.024
Maqui Maqui 51.35%
San Jose 51.35% 1,102 0.018 2,347 0.014
Cerro Yanacocha 51.35% 33,516 0.018 36,403 0.035
La Quinua(and El Tapado) 51.35% 16,170 0.016 78,975 0.015
Corimayo 51.35% 63,588 0.040 0 0.000
Cerro Negro 51.35% 448 0.012 352 0.010
Cerro Qulish 51.35% 20,888 0.024 47,365 0.023
In Process 51.35%
TOTAL OXIDE GOLD LEACH 141,522 0.029 173,795 0.022
SULFIDE COPPER-GOLD DEPOSITS
Minas Conga 51.35% 707,028 0.023 707,028 0.023
----------------------------------------------------------------------------------------------------------
TOTAL MINERA YANACOCHA 848,550 0.024 880,823 0.023
----------------------------------------------------------------------------------------------------------
KORI KOLLO, BOLIVIA 88.00% 2,601 0.018 16,685 0.039
GURUPI, BRAZIL (2) 50.00% 66,563 0.041
----------------------------------------------------------------------------------------------------------
TOTAL SOUTH AMERICA 851,151 0.024 964,071 0.024
==========================================================================================================
AUSTRALASIA
PAJINGO (VERA/NANCY) 50.00% 2,977 0.34 4,048 0.37
----------------------------------------------------------------------------------------------------------
TOTAL AUSTRALASIA 2,977 0.34 4,048 0.37
==========================================================================================================
ASIA
BATU HIJAU, INDONESIA-GOLD (3) 56.25% 588,416 0.008 572,674 0.005
----------------------------------------------------------------------------------------------------------
TOTAL ASIA 588,416 0.008 572,674 0.005
==========================================================================================================
TOTAL WORLDWIDE -- GOLD 1,813,219 0.022 1,917,441 0.022
--------------------------------------------------------------------------------
18 OF 19
NEWMONT MINING CORPORATION
COPPER MINERALIZED MATERIAL NOT IN RESERVE -- U.S. UNITS
==========================================================================================================
GOLD DEPOSITS/DISTRICTS | NEWMONT | DECEMBER 31, 2001 | DECEMBER 31, 2000 (1)
COPPER | SHARE | (100%) | (100%)
| (%) | ----------------------------------------------------------
| | TONNAGE GRADE | TONNAGE GRADE
| | (000 TONS) (CU%) | (000 TONS) (CU%)
----------------------------------------------------------------------------------------------------------
PHOENIX, NEVADA-COPPER | 100.0% | 99,594 0.14% 99,594 0.14%
BATU HIJAU, INDONESIA- | |
COPPER (3) | 56.25% | 588,416 0.37% 572,674 0.33%
MINAS CONGA, PERU-COPPER | 51.35% | 707,028 0.30% 707,028 0.30%
==========================================================================================================
TOTAL WORLDWIDE -- COPPER | | 1,395,038 0.31% 1,379,296 0.30%
==========================================================================================================
(1) Percentage reflects Newmont's equity interest in remaining reserves. In 2000, this percentage was
88.3%.
(2) Agreement reached with TVX Gold on sale of property. TVX will declare 100% of Gurupi in its annual
report.
(3) Percentage reflects Newmont's economic interest in remaining reserves, unchanged from 2000.
RECONCILIATION OF DECEMBER 2000 AND DECEMBER 2001 GOLD RESERVES
NEWMONT MINING CORPORATION ONLY
==========================================================================================================
NEWMONT EQUITY CONTAINED OUNCES (MILLION)
-----------------------------------------
DECEMBER 2000 66.3
Depletion (1) (6.8)
Revisions and 0.1
Additions (2)
DECEMBER 2001 59.6
==========================================================================================================
(1) Depletion represents 2000 reserves processed in 2001
(2) Revisions and additions due to reserve conversions, optimizations, model updates, and updated unit
costs and recoveries.
RESERVE SENSITIVITY TO GOLD PRICE
NEWMONT MINING CORPORATION ONLY
==========================================================================================================
NEWMONT EQUITY CONTAINED PERCENTAGE SENSITIVITY FROM
OUNCES (MILLION) $300/OUNCE
-----------------------------------------------------------------------------------
GOLD PRICE ($/OUNCE) DECEMBER 31, 2000 DECEMBER 31, 2001 DECEMBER 31, 2000 DECEMBER 31, 2001
$325 68.7 62.6 3.6% 5.0%
$300 66.3 59.6 --- ---
$275 61.4 55.5 -7.4% -6.9%
==========================================================================================================
--------------------------------------------------------------------------------
19 OF 19