2014

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).

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




Intl Dial-In Number

312.470.7116




Leader

John Seaberg




Passcode

Newmont




Replay Number

800.294.3093




Intl Replay Number

203.369.3228




Replay Passcode

2012









Webcast Details





URL

http://services.choruscall.com/links/newmont120727.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.

SOURCE Newmont Mining Corporation



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