Newmont Announces Second Quarter Net Income from Continuing Operations of $0.56 per Share

Quarterly Dividend of $0.35 per share up 17% from Prior Year Quarter

This release should be read in conjunction with Newmont's Second Quarter 2012 Form 10-Q filed with the Securities and Exchange Commission on July 26, 2012 (available at www.newmont.com).

Jul 26, 2012, 17:36 ET from Newmont Mining Corporation

DENVER, July 26, 2012 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today reported attributable net income from continuing operations of $279 million, or $0.56 per share, down 47% from $523 million, or $1.06 per share in the second quarter of 2011. Adjusted net income(1) was $294 million, or $0.59 per share, compared with $445 million, or $0.90 per share, for the prior year quarter.

Quarter Highlights:

  • Sales revenue of $2.2 billion, a decrease of 6% from the prior year quarter;
  • Average realized gold and copper price of $1,598 per ounce and $2.85 per pound, up 6% and down 25%, respectively, from the prior year quarter;
  • Attributable gold and copper production of 1.18 million ounces and 38 million pounds, down 3% and 10%, respectively, from the prior year quarter; attributable gold and copper sales of 1.14 million ounces and 29 million pounds, down 6% and 35%, respectively, from the prior year quarter;
  • Gold and copper costs applicable to sales ("CAS") of $681 per ounce and $2.35 per pound, up 17% and 75%, respectively, from the prior year quarter;
  • Cash flow from continuing operations of $351 million, down 15% from the prior year quarter;
  • Third quarter gold price-linked dividend payable of $0.35 per share, up 17% from the prior year quarter; and
  • 2012 attributable gold production outlook narrowed to 5.0 to 5.1 million ounces, maintaining CAS outlook of $625 to $675 per ounce, and reducing outlook for attributable capital expenditures to $2.7 billion to $3.0 billion.

"Globally, our portfolio continues to perform in line with our budget.  As expected, our second quarter gold production was impacted by annual planned mill maintenance in Nevada and lower gold and copper production from Batu Hijau in Indonesia, as we continue with the planned stripping of Phase 6," said Richard O'Brien, Chief Executive Officer.  "Our capital expenditures are expected to be approximately $300 million lower than originally planned for the year, largely as a result of our slower development timetable at Conga in Peru.  We also expect our advanced projects, exploration and G&A expenditures to collectively be approximately $100 million lower this year.  As we continue to optimize and refine our plans, we expect to deliver further efficiencies and cost savings for 2013 and beyond," added Mr. O'Brien.

(1) Non-GAAP measure. See page 10 for reconciliation.

Newmont is narrowing its previously announced 2012 outlook for attributable gold production to 5.0 to 5.1 million ounces (from 5.0 to 5.2 million ounces), and narrowing its outlook on attributable copper production to 145 to 165 million pounds (from 150 to 170 million pounds). The lower attributable gold production outlook is due to lower tons mined at Tanami.  The Company is maintaining its original outlook for gold and copper CAS of between $625 and $675 per ounce (on a co-product basis) and $1.80 and $2.20 per pound, respectively.

Newmont is also revising its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion (from $3.0 to $3.3 billion), or $3.3 to $3.6 billion (from $3.7 to $4.0 billion) on a consolidated basis.  This revision is primarily due to the deferral of development of the Conga project in Peru.  As previously disclosed, the Company will take a slower development approach on the Conga project with a focus on the construction of reservoirs for downstream communities. Construction of Conga and the implementation of the independent EIA review recommendations will continue provided it can be done in a safe manner with risk-adjusted returns that justify future investment.

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

Operations

North America

Nevada – Attributable gold production in Nevada was 378,000 ounces at CAS of $718 per ounce during the second quarter. Gold production increased 6% from the prior year quarter due to higher throughput at Mill 6, partially offset by lower grade at Midas and Phoenix.  CAS per ounce increased 13% due to higher underground mining costs, higher royalties and lower by-product credits. The Company is narrowing its outlook for 2012 attributable gold production from Nevada to 1.730 to 1.775 million ounces, and continues to expect CAS of between $575 and $625 per ounce.

La Herradura – Attributable gold production at La Herradura in Mexico was 59,000 ounces at CAS of $569 per ounce during the second quarter.  Gold production increased 11% from the prior year quarter due to higher leach placement as Noche Buena commenced production during the first quarter of 2012.  CAS increased 11% from the prior year quarter due to higher waste tons mined, higher diesel and higher employee profit sharing costs. The Company is narrowing its outlook for 2012 attributable gold production from La Herradura to 220,000 to 230,000 ounces at CAS of between $460 and $510 per ounce.

South America

Yanacocha – Attributable gold production at Yanacocha in Peru was 200,000 ounces at CAS of $466 per ounce during the second quarter. Gold production increased 14% from the prior year quarter due to higher mill grade and recovery, partially offset by lower leach placement. CAS per ounce decreased 14% from the prior year quarter due to higher production and lower mining costs, partially offset by higher workers' participation costs and lower by-product credits. The Company is narrowing its outlook for 2012 attributable gold production from Yanacocha to 675,000 to 700,000 ounces at CAS of between $475 and $525 per ounce.

La Zanja – Attributable gold production during the second quarter at La Zanja in Peru was approximately 13,000 ounces.  The Company is narrowing its outlook for 2012 attributable gold production from La Zanja to 50,000 to 60,000 ounces.

(2) Payable on September 28, 2012 to shareholders of record as of September 6, 2012.

Asia Pacific

Boddington – Attributable gold and copper production during the second quarter at Boddington in Australia was 180,000 ounces and 18 million pounds, respectively, at CAS of $947 per ounce and $2.79 per pound, respectively.  Gold ounces produced were 10% lower than the prior year due to lower mill grade and recovery, partially offset by higher mill throughput.  Gold CAS increased 48% due to lower gold production and higher milling costs. Copper pounds produced increased 20% from the prior year quarter due to higher mill throughput and grade, partially offset by lower recovery.  CAS per pound increased 44% from the prior year quarter due to higher milling costs, partially offset by higher copper production. The Company is narrowing its outlook for 2012 attributable gold production to 750,000 to 775,000 ounces at CAS of between $800 and $850 per ounce and is maintaining outlook for attributable copper production of 70 to 80 million pounds at CAS of between $2.00 and $2.25 per pound. 

Batu Hijau – Attributable gold and copper production during the second quarter at Batu Hijau in Indonesia was 8,000 ounces and 20 million pounds, respectively, at CAS of $943 per ounce and $2.20 per pound, respectively. Gold and copper production decreased 68% and 25%, respectively, from the prior year quarter due to processing lower grade stockpile ore. Waste tons mined increased 14% as Phase 6 waste removal continues as planned. CAS per ounce and per pound increased 92% and 79%, respectively, due to lower production and higher waste mining costs, partially offset by an increase in concentrate inventory. The Company is narrowing its outlook for 2012 attributable gold production to 30,000 to 40,000 ounces at CAS of between $925 and $975 per ounce and attributable copper production of 75 to 85 million pounds at CAS of between $1.80 and $2.20 per pound.

Other Australia/New Zealand – Attributable gold production during the second quarter was 207,000 ounces at CAS of $880 per ounce. Attributable gold ounces produced decreased 15% from the prior year quarter due to lower underground mining rates at Tanami and a delay in open pit ore production at Waihi, partially offset by higher throughput and grade at Jundee. CAS per ounce increased 38% from the prior year quarter due to lower production, higher operating costs driven by higher power prices and a stronger Australian dollar, net of hedging gains. The Company is narrowing its outlook for 2012 attributable gold production to 950,000 to 990,000 ounces at CAS of between $810 and $860 per ounce.

Africa

Ahafo – Attributable gold production during the first quarter at Ahafo in Ghana was 132,000 ounces at CAS of $583 per ounce. Gold production decreased 10% from the prior year quarter due to lower mill throughput and grade, partially offset by higher recovery.  CAS per ounce increased 31% from the prior year quarter due to lower production and higher labor, diesel and mine maintenance costs.  The Company is narrowing its outlook for 2012 attributable gold production to 555,000 to 570,000 ounces at CAS of between $550 and $600 per ounce.

Capital Update

Consolidated capital expenditures were $882 million during the second quarter. Newmont is revising its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion (from $3.0 to $3.3 billion), or $3.3 to $3.6 billion (from $3.7 to $4.0 billion) on a consolidated basis.  This revision is primarily due to the deferral of development on the Conga project in Peru. 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.

2012 Outlook- Q2 Update

2012 Production, CAS and Capital Outlook

Attributable Production

Consolidated CAS

Consolidated Capital

Attributable Capital

Region

(Kozs, Mlbs)

($/oz, $/lb)

Expenditures ($M)

Expenditures ($M)

Nevada

1,730 - 1,775

$575 - $625

$750 - $800

$750 - $800

La Herradura 

220 - 230

$460 - $510

$80 - $130

$80 - $130

  North America

1,950 - 2,005

$570 - $630

$850 - $900

$850 - $900

Yanacocha

675 - 700

$475 - $525

$530 - $580

$270 - $310

La Zanja

50 - 60

n/a

-

-

Conga

-

-

$500 - $600

$250 - $300

  South America

725 - 760

$475 - $525

$1,100 - $1,200

$550 - $600

Boddington

750 - 775

$800 - $850

$150 - $200

$150 - $200

Other Australia/NZ  

950 - 990

$810 - $860

$325 - $375

$325 - $375

Batu Hijaud

30 - 40

$925 - $975

$200 - $225

$100 - $125

  Asia Pacific

1,730 - 1,805

$800 - $850

$700 - $800

$600 - $700

Ahafo

555 - 570

$550 - $600

$240 - $270

$240 - $270

Akyem

-

-

$370 - $420

$370 - $420

  Africa

555 - 570

$550 - $600

$600 - $700

$600 - $700

Corporate/Other

-

-

$55 - $65

$55 - $65

Total Gold

5,000 - 5,100

$625 - $675 a,b

$3,300 - $3,600 c

$2,700 - $3,000

Boddington 

70 - 80

$2.00 - $2.25

-

-

Batu Hijaud

75 - 85

$1.80 - $2.20

-

-

Total Copper

145 - 165

$1.80 - $2.20

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.

cIncludes 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

$360 - $390

$320 - $350

Advanced Projects & R&D

$425 - $475

$375 - $400

Tax Rate

30% - 32%

30% - 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

Six Months Ended

June 30,

June 30,

2012

2011

2012

2011

Sales  

$

2,229

$

2,384

$

4,912

$

4,849

Costs and expenses  

Costs applicable to sales

1,002

917

2,019

1,857

Amortization   

248

250

479

506

Reclamation and remediation  

16

43

32

57

Exploration    

106

89

194

151

Advanced projects, research and development   

82

86

184

154

General and administrative    

57

50

111

95

Other expense, net  

126

87

246

160

1,637

1,522

3,265

2,980

Other income (expense)  

Other income, net  

36

48

69

79

Interest expense, net    

(71)

(63)

(123)

(128)

(35)

(15)

(54)

(49)

Income before income and mining tax and other items  

557

847

1,593

1,820

Income and mining tax expense  

(175)

(187)

(518)

(492)

Equity income (loss) of affiliates    

(11)

-

(30)

2

Income from continuing operations    

371

660

1,045

1,330

Loss from discontinued operations  

-

(136)

(71)

(136)

Net income    

371

524

974

1,194

Net income attributable to noncontrolling interests  

(92)

(137)

(205)

(293)

Net income attributable to Newmont stockholders    

$

279

$

387

$

769

$

901

Net income attributable to Newmont stockholders:  

Continuing operations    

$

279

$

523

$

840

$

1,037

Discontinued operations    

-

(136)

(71)

(136)

$

279

$

387

$

769

$

901

Income per common share   

Basic:  

Continuing operations    

$

0.56

$

1.06

$

1.69

$

2.10

Discontinued operations    

-

(0.28)

(0.14)

(0.28)

$

0.56

$

0.78

$

1.55

$

1.82

Diluted:  

Continuing operations    

$

0.56

$

1.04

$

1.67

$

2.07

Discontinued operations    

-

(0.27)

(0.14)

(0.27)

$

0.56

$

0.77

$

1.53

$

1.80

Cash dividends declared per common share    

$

0.35

$

0.20

$

0.70

$

0.35

 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

Three Months Ended June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Operating activities:

Net income

$

371

$

524

$

974

$

1,194

Adjustments:

Amortization 

248

250

479

506

Loss from discontinued operations

-

136

71

136

Reclamation and remediation

16

43

32

57

Deferred income taxes 

67

(5)

12

(38)

Stock based compensation and other non-cash benefits

19

25

36

44

Impairment of marketable securities

8

1

32

1

Gain on asset sales, net

-

(50)

(10)

(53)

Other operating adjustments and write-downs

34

51

106

96

Net change in operating assets and liabilities

(412)

(561)

(768)

(540)

Net cash provided from continuing operations  

351

414

964

1,403

Net cash used in discontinued operations  

(4)

(2)

(8)

(2)

Net cash provided from operations  

347

412

956

1,401

Investing activities:

Additions to property, plant and mine development 

(882)

(618)

(1,578)

(1,020)

Sale of marketable securities

106

55

106

55

Purchases of marketable securities

(53)

(3)

(196)

(15)

Acquisitions, net

(11)

(2,284)

(22)

(2,291)

Proceeds from sale of other assets

1

-

13

6

Other  

(20)

(12)

(37)

(15)

Net cash used in investing activities

(859)

(2,862)

(1,714)

(3,280)

Financing activities:

Proceeds from debt, net

(3)

775

3,343

775

Repayment of debt  

(34)

(942)

(1,941)

(973)

Payment of conversion premium on debt

-

-

(172)

-

Dividends paid to common stockholders  

(174)

(99)

(347)

(173)

Dividends paid to noncontrolling interests

(3)

(2)

(3)

(17)

Proceeds from stock issuance, net  

13

5

15

8

Other  

1

-

(1)

-

Net cash provided from (used in) financing activities

(200)

(263)

894

(380)

Effect of exchange rate changes on cash  

(3)

35

1

58

Net change in cash and cash equivalents  

(715)

(2,678)

137

(2,201)

Cash and cash equivalents at beginning of period  

2,612

4,533

1,760

4,056

Cash and cash equivalents at end of period  

$

1,897

$

1,855

$

1,897

$

1,855

 

 

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

At June 30,

At December 31,

2012

2011

ASSETS

Cash and cash equivalents  

$

1,897

$

1,760

Trade receivables  

290

300

Accounts receivable  

359

320

Investments

132

94

Inventories

803

714

Stockpiles and ore on leach pads

798

671

Deferred income tax assets  

255

396

Other current assets

738

1,133

Current assets  

5,272

5,388

Property, plant and mine development, net  

16,936

15,881

Investments

1,185

1,472

Stockpiles and ore on leach pads

2,579

2,271

Deferred income tax assets  

1,686

1,605

Other long-term assets

1,002

857

Total assets  

$

28,660

$

27,474

LIABILITIES

Debt

$

40

$

689

Accounts payable  

574

561

Employee-related benefits  

293

307

Income and mining taxes  

173

250

Other current liabilities

1,287

2,133

Current liabilities  

2,367

3,940

Debt

6,088

3,624

Reclamation and remediation liabilities

1,270

1,169

Deferred income tax liabilities  

2,056

2,147

Employee-related benefits  

487

459

Other long-term liabilities

403

364

Total liabilities  

12,671

11,703

EQUITY

Common stock  

786

784

Additional paid-in capital  

8,291

8,408

Accumulated other comprehensive income

361

652

Retained earnings  

3,474

3,052

Newmont stockholders' equity  

12,912

12,896

Noncontrolling interests  

3,077

2,875

Total equity 

15,989

15,771

Total liabilities and equity  

$

28,660

$

27,474

 

 Regional Operating Statistics 

 Production Statistics Summary 

 Three Months Ended

June 30, 

 Six Months Ended

June 30, 

2012

2011

2012

2011

 Gold 

 Consolidated ounces produced (thousands): 

   North America 

    Nevada

378

357

813

790

    La Herradura

59

53

113

102

437

410

926

892

   South America 

    Yanacocha

390

342

756

630

   Asia Pacific 

    Boddington

180

201

342

364

    Batu Hijau

16

50

38

143

    Other Australia/New Zealand

207

244

472

543

403

495

852

1,050

   Africa 

    Ahafo

132

146

307

332

1,362

1,393

2,841

2,904

 Copper 

 Consolidated pounds produced (millions): 

   Asia Pacific 

    Boddington

18

15

32

28

    Batu Hijau

42

56

85

141

60

71

117

169

 Gold 

 Attributable ounces produced (thousands): 

   North America 

    Nevada

378

357

813

790

    La Herradura

59

53

113

102

437

410

926

892

   South America 

    Yanacocha

200

175

388

323

    Other South America Equity Interests

13

18

26

30

213

193

414

353

   Asia Pacific 

    Boddington

180

201

342

364

    Batu Hijau

8

25

19

69

    Other Australia/New Zealand

207

244

472

543

    Other Asia Pacific Equity Interests

5

4

9

8

400

474

842

984

   Africa 

    Ahafo

132

146

307

332

1,182

1,223

2,489

2,561

 Copper 

 Attributable pounds produced (millions): 

   Asia Pacific 

    Boddington

18

15

32

28

    Batu Hijau

20

27

41

68

38

42

73

96

 

 CAS and Capital Expenditures 

 Three Months Ended

June 30, 

 Six Months Ended

June 30, 

2012

2011

2012

2011

 Gold 

Costs Applicable to Sales ($/ounce)(1)

        North America 

     Nevada

$

718

$

636

$

663

$

640

     La Herradura

569

514

574

456

697

620

652

619

        South America 

     Yanacocha

466

545

462

561

        Asia Pacific 

     Boddington

947

641

862

620

     Batu Hijau

943

490

924

384

     Other Australia/New Zealand

880

638

812

595

911

620

837

570

        Africa 

     Ahafo

583

446

575

449

   Average 

$

681

$

583

$

649

$

570

   Attributable to Newmont 

$

711

$

588

$

672

$

575

 Copper 

Costs Applicable to Sales ($/pound)(1)

        Asia Pacific 

     Boddington

$

2.79

$

1.94

$

2.34

$

2.06

     Batu Hijau

2.20

1.23

2.08

1.07

   Average 

$

2.35

$

1.34

$

2.14

$

1.21

   Attributable to Newmont 

$

2.40

$

1.41

$

2.17

$

1.32

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

 Three Months Ended

June 30, 

 Six Months Ended

June 30, 

2012

2011

2012

2011

 Consolidated Capital Expenditures ($ million) 

   North America 

Nevada

$

213

$

133

$

370

$

228

La Herradura

8

11

29

27

Other North America

-

22

-

41

221

166

399

296

   South America 

Yanacocha

150

86

243

127

Conga

195

187

342

251

345

273

585

378

   Asia Pacific 

Boddington

29

26

52

75

Batu Hijau

28

48

61

88

Other Australia/New Zealand

67

72

137

134

Other Asia Pacific

5

2

8

4

129

148

258

301

   Africa 

Ahafo

58

22

108

37

Akyem

104

39

189

67

162

61

297

104

Corporate and Other

(1)

4

37

18

 Total - Accrual Basis 

$

856

$

652

$

1,576

$

1,097

 Change in Capital Accrual 

26

(34)

2

(77)

 Total - Cash Basis 

$

882

$

618

$

1,578

$

1,020

 Attributable to Newmont (Accrual Basis) 

$

674

$

494

$

1,260

$

868

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 

 Six months ended 

 June 30, 

 June 30, 

 (in millions except per share, after-tax) 

2012

2011

2012

2011

 GAAP Net income 

$ 279

$ 387

$ 769

$ 901

 Impairment of Hope Bay assets 

-

-

-

-

 Other impairments/asset sales 

7

(30)

24

(32)

 Fronteer acquisition costs 

-

17

-

18

 Boddington contingent consideration 

8

-

8

-

 PTNNT community contribution 

-

-

-

-

 Income tax planning, net 

-

(65)

-

(65)

 Loss from discontinued operations 

-

136

71

136

 Adjusted net income 

$ 294

$ 445

$ 872

$ 958

 Net income per share, basic 

$0.56

$0.78

$1.55

$1.82

 Adjusted net income per share, basic 

$0.59

$0.90

$1.76

$1.94

 Adjusted net income per share, diluted 

$0.59

$0.89

$1.74

$1.91

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 June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Costs applicable to sales:

     Consolidated

$

894

$

811

$

1,796

$

1,634

     Noncontrolling interests (1)

(96)

(111)

(187)

(205)

     Attributable to Newmont

$

798

$

700

$

1,609

$

1,429

Gold sold (000 ounces):

     Consolidated

1,313

1,391

2,768

2,869

     Noncontrolling interests (1)

(191)

(201)

(373)

(383)

     Attributable to Newmont

1,122

1,190

2,395

2,486

Costs applicable to sales per ounce:

     Consolidated

$

681

$

583

$

649

$

570

     Attributable to Newmont

$

711

$

588

$

672

$

575

Costs applicable to sales per pound

Three Months Ended June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Costs applicable to sales:

     Consolidated

$

108

$

106

$

223

$

223

     Noncontrolling interests (1)

(36)

(41)

(80)

(87)

     Attributable to Newmont

$

72

$

65

$

143

$

136

Copper sold (million lbs):

     Consolidated

46

79

104

184

     Noncontrolling interests (1)

(16)

(33)

(38)

(81)

     Attributable to Newmont

30

46

66

103

Costs applicable to sales per pound:

     Consolidated

$

2.35

$

1.34

$

2.14

$

1.21

     Attributable to Newmont

$

2.40

$

1.41

$

2.17

$

1.32

Net attributable costs applicable to sales per ounce

Three Months Ended June 30,

Six Months Ended June 30,

2012

2011

2012

2011

Attributable costs applicable to sales:

     Gold

$

798

$

700

$

1,609

$

1,429

     Copper

72

65

143

136

$

870

$

765

$

1,752

$

1,565

Copper revenue:

     Consolidated

$

(130)

$

(296)

$

(363)

$

(718)

     Noncontrolling interests (1)

45

125

134

315

(85)

(171)

(229)

(403)

Net attributable costs applicable to sales

$

785

$

594

$

1,523

$

1,162

Attributable gold ounces sold (thousands)

1,122

1,190

2,395

2,486

Net attributable costs applicable to sales per ounce

$

700

$

499

$

636

$

467

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

Conference Call Information

A conference call will be held on Friday, July 27, 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