Newmont Announces First Quarter Operating and Financial Results

Generated $183 million in cash flow from continuing operations on $1.8 billion in revenues

DENVER--()--Newmont Mining Corporation (NYSE: NEM) (“Newmont” or the “Company”) today reported first quarter 2014 financial and operating results.

“We are building on the momentum we established in 2013 with strong cost and production performance in the first quarter of 2014,” said Gary Goldberg, President and Chief Executive Officer. “Our team drove down all-in sustaining costs by $82 million compared to the prior year quarter through sustainable cost and efficiency improvements. We are also delivering on our commitment to improve mining fundamentals, which led to a 40 percent increase in gold production at Tanami compared to the prior year quarter. We are confident we can maintain this trajectory as the year progresses, as evidenced by our updated outlook for lower costs and higher production for Africa.”

Highlights for the first quarter

  • Achieved reported net income attributable to shareholders from continuing operations of $117 million, or $0.23 per basic share, and adjusted net income1 of $108 million, or $0.22 per basic share;
  • Generated cash from continuing operations of $183 million;
  • Generated cost savings of $82 million in gold all-in sustaining costs2 (“AISC”), which equates to $1,034 per ounce, down 8 percent from the prior year quarter;
  • Realized costs applicable to sales (“CAS”) of $751 per ounce of gold and $2.71 per pound of copper, a decrease of 1 percent and an increase of 19 percent, respectively, over first quarter last year;
  • Delivered 1.2 million ounces and 24 thousand tonnes of attributable gold and copper production, with higher gold production coming from our Australia/New Zealand and Africa operations;
  • Improved AISC outlook3 by 13 percent, and production outlook by 2 percent in Africa; and
  • Declared a second quarter dividend of $0.025 per share in accordance with the Company’s gold price-linked dividend policy4.

First Quarter Financial Results

The Company reported attributable net income from continuing operations of $117 million, or $0.23 per basic share, compared with $314 million, or $0.63 per share in 2013. The Company reported adjusted net income of $108 million, or $0.22 per basic share, compared with $353 million, or $0.70 per basic share a year earlier. Improved production and stable operating costs relative to the prior year quarter were offset by declines in average realized gold and copper prices of approximately 21 percent and 20 percent, respectively. Reduced spending on exploration, advanced projects, and sustaining capital also led to $82 million in lower gold AISC this quarter.

Summary of first quarter 2014 financial results compared with 2013:

  • Generated revenue of $1.8 billion compared with $2.2 billion in 2013;
  • Gold and copper AISC of $1,034 per ounce and $3.67 per pound, respectively, compared with $1,121 per ounce and $3.38 per pound, respectively;
  • Average realized gold and copper price of $1,293 per ounce and $2.50 per pound, respectively, compared with $1,631 per ounce and $3.12 per pound, respectively;
  • Gold and copper CAS of $751 per ounce and $2.71 per pound, respectively, compared with $760 per ounce and $2.27 per pound, respectively; and
  • Cash flow from continuing operations of $183 million compared with $439 million.

First Quarter Operating Results

 
Summary Production Table
(Attributable production, Koz and kt)
Region     Q1 2014     Q1 2013     Change
North America     405     436     -7%
South America     122     162     -25%
Australia/New Zealand     450     435     3%
Indonesia     8     7     14%
Africa     225     125     80%
Total Gold     1,210     1,165     4%
North America     6     3     100%
Australia/New Zealand     8     8     0%
Indonesia     10     9     11%
Total Copper     24     20     20%
 
 
Summary CAS Table
(Consolidated $/oz and $/lb)
Region     Q1 2014     Q1 2013     Change
North America     $726     $766     -5%
South America     $1,075     $576     87%
Australia/New Zealand     $783     $922     -15%
Indonesia     $1,283     $993     29%
Africa     $428     $555     -23%
Total Gold CAS     $751     $760     -1%
North America     $2.39     $3.20     -25%
Australia/New Zealand     $2.63     $2.35     12%
Indonesia     $2.99     $2.05     46%
Total Copper CAS     $2.71     $2.27     19%
 
 
Summary All-in Sustaining Costs Table
(Consolidated $/oz and $/lb)
Region     Q1 2014     Q1 2013     Change
North America     $958     $1,027     -7%
South America     $1,403     $885     59%
Australia/New Zealand     $942     $1,136     -17%
Indonesia     $2,167     $2,000     8%
Africa     $616     $1,126     -45%
Total Gold AISC     $1,034     $1,121     -8%
North America     $2.55     $3.75     -32%
Australia/New Zealand     $3.27     $2.95     11%
Indonesia     $4.63     $3.70     25%
Total Copper AISC     $3.67     $3.38     9%
           

Attributable gold production increased approximately 4 percent from 2013 levels due to production from the new Akyem operation, as well as higher production from Australian operations, partially offset by lower production from Peru as a result of the planned stripping campaign at Yanacocha. Attributable copper tonnes produced were 20 percent higher with the contribution from the Phoenix Copper Leach operation in Nevada. Gold CAS remained stable over last year. Gold AISC was reduced by 8 percent, primarily due to cost and efficiency improvements.

First Quarter Operating Results by Region

North America

Attributable gold production at Carlin decreased 1 percent from the prior year quarter, primarily due to planned lower grades at Mill 6. CAS per ounce increased 4 percent due to planned stockpile and leach pad inventory adjustments, partially offset by lower operating costs.

Attributable gold production at Phoenix increased 4 percent from the prior year quarter due to slightly higher grade at the Phoenix mill. Copper pounds produced increased 71 percent due to production from the Phoenix Copper Leach operation, which entered commercial production in the fourth quarter of 2013. Gold CAS per ounce decreased 48 percent due to higher ounces sold and a higher allocation of costs to copper with the copper leach facility in production. Copper CAS per pound decreased 25 percent due to higher copper pounds sold as a result of the new copper leach facility.

Attributable gold production at Twin Creeks decreased 3 percent from the prior year quarter due to lower production following the sale of Midas, partially offset by higher mill throughput at the Autoclave. CAS per ounce decreased 1 percent due to more ounces sold.

Attributable gold production at La Herradura decreased 49 percent from the prior year quarter due to the suspension of their explosives permit. CAS per ounce decreased 6 percent due to a decrease in stripping with the ramp up of production after receiving the explosives permit at the end of February partially offset by lower ounces sold.

Gold AISC in North America was $958 per ounce, a decrease of 7 percent over the prior year quarter due to realization of operating efficiencies, reduced exploration and advanced project spend and reduced royalties. Copper AISC was $2.55 per pound, a decrease of 32 percent over prior year quarter due to increased copper production from Phoenix Copper Leach.

South America

Attributable gold production at Yanacocha decreased 25 percent from the prior year quarter mainly due to the planned stripping phase at the Tapado Oeste pit. Production is expected to increase in the second half of 2014 as mining returns to higher grade ore at Tapado Oeste. CAS per ounce increased 87 percent from the prior year quarter primarily due to higher direct mining costs associated with the current stripping campaign.

Gold AISC in South America was $1,403 per ounce, an increase of 59 percent over the prior year quarter due to higher production costs and lower volume resulting from the stripping campaign.

Australia/New Zealand

Attributable gold production at Boddington decreased 2 percent from the prior year quarter, primarily due to lower grades. Copper production was in line with the prior year quarter. Boddington realized record-setting throughput levels this quarter due to sustainable process improvements implemented through the Full Potential program. These benefits were offset by the lower grades. Gold CAS decreased 3 percent per ounce due to a combination of lower mill maintenance costs and favorable foreign exchange rates. Copper CAS increased 12 percent per pound, primarily due to planned stockpile inventory adjustments.

Attributable gold production at Tanami increased 40 percent from the prior year quarter, primarily as a result of higher grades from the Auron ore body and lower mining dilution from improved mining practices. CAS per ounce decreased by 45 percent due to higher production coupled with lower operating costs and favorable foreign exchange rates.

Attributable gold production at Jundee decreased 17 percent from the prior year quarter primarily as a result of lower ore grade milled. CAS per ounce decreased by 6 percent as a result of lower underground mining costs and favorable foreign exchange rates, partially offset by lower production.

Attributable gold production at Waihi decreased 10 percent from the prior year quarter primarily as a result of lower ore grade milled and a build-up of gold in circuit inventory, partially offset by higher throughput. CAS per ounce decreased by 18 percent as a result of lower underground mining costs.

Attributable gold production at KCGM increased 15 percent from the prior year quarter primarily as a result of higher grades and tons milled. CAS per ounce decreased by 17 percent as a result of the higher production.

Gold AISC in Australia/New Zealand was $942 per ounce, a decrease of 17 percent over the prior year quarter due to lower production costs, exploration costs, and sustaining capital spend. Copper AISC was $3.27 per pound, an increase of 11 percent over the prior year due to higher CAS per pound.

Indonesia

Attributable gold and copper production at Batu Hijau increased 14 percent and 11 percent, respectively, from the prior year quarter due to higher ore grade and recovery for both gold and copper. However, the Company was unable to export approximately 2 thousand attributable ounces of gold and 2.5 thousand attributable tonnes of copper as a result of new export regulations imposed in January 2014 by the Indonesian government.

CAS increased 29 percent per ounce of gold and 46 percent per pound of copper, due to the planned stockpile inventory adjustments and lower ounces and pounds sold.

Gold AISC in Indonesia was $2,167 per ounce, an increase of 8 percent over the prior year quarter and copper AISC was $4.63 per pound, an increase of 25 percent over the prior year quarter, due to lower ounces and pounds sold.

Africa

Attributable gold production at Ahafo decreased 16 percent from the prior year quarter due to lower processed ore grade. CAS per ounce was in line with the prior year. The new Akyem operation is performing well, providing 120,000 ounces of production at CAS of $311 per ounce.

Gold AISC in Africa was $616 per ounce this quarter, a decrease of 45 percent over the prior year quarter due to new production at Akyem and lower exploration and advanced project expense and sustaining capital.

Outlook Update

The Company continues to expect total attributable gold production of between 4.6 to 4.9 million ounces at CAS of $740 to $790 per ounce and AISC of $1,075 to $1,175 per ounce. The Company also continues to expect total copper production of between 95 to 110 thousand tonnes at CAS of $2.00 to $2.25 per pound and AISC of $2.75 to $2.95 per pound. As a result of mine plan optimization at the Ahafo operation in Africa, the Company is increasing production outlook from between 785,000 to 850,000 ounces to between 790,000 to 870,000 ounces for the region. Both Ahafo and Akyem are realizing lower costs and the Company is reducing its Africa regional CAS from $575 to $625 per ounce to $510 to $555 per ounce, and AISC from $795 to $865 per ounce to $690 to $755 per ounce for 2014. The Company also announced a decrease in expected interest expense of $25 million. Offsetting that, the 2014 tax rate is now expected to be between 37 and 40 percent, primarily due to the tax treatment of the sale of Midas and higher taxes in Peru.

Balance Sheet and Financial Flexibility

Cash from continuing operations was $183 million. The Company also received cash of $57 million from the sale of its Midas operation and $25 million from the sale of its investment in Paladin Energy. At quarter end, the Company held $1.5 billion of consolidated cash on its balance sheet.

The Company also recently closed on a term loan of $575 million. The term loan provides for a single, delayed drawdown through July 15, 2014, with a maturity date five years from drawdown. The loan is intended to retire the $575 million of convertible debt maturing July 2014. The Company now expects a lower 2014 interest expense of between $325 to $350 million. Concurrent with closing the term loan, the Company also renewed its $3.0 billion corporate revolving credit facility, extending the maturity date two years to March 31, 2019. At March 31, there were no outstanding borrowings under the facility.

Capital Update

Total capital spent in the first quarter was $235 million. Capital expenditures in North America during the first quarter of 2014 were primarily related to the development of the Turf Leeville vent shaft in Nevada. Capital expenditures in South America, Australia and New Zealand, Indonesia, and Africa were primarily for sustaining capital.

The Company continues to manage its wider project portfolio to maintain flexibility to address the development risks associated with its projects including permitting, local community and government support, engineering and procurement availability, technical issues, escalating costs and other associated risks that could adversely impact the timing and costs of certain opportunities.

Indonesia Update

In January 2014, the Indonesian government issued new regulations for the export of copper concentrate that contain potentially restrictive conditions for obtaining an export permit, as well as a significant, progressive export duty. While the 2009 mining law preserves the validity of PT Newmont Nusa Tenggara’s (“PTNNT”, the entity operating the Batu Hijau mine) Contract of Work (the investment agreement entered into by PTNNT and the Indonesian government in 1986, which includes the right to export copper concentrates and a prohibition against new taxes, duties, and levies), the Indonesian government has stated its intention to enforce the new regulations on PTNNT’s operations and has not yet recognized PTNNT’s rights to export copper concentrate and only pay the taxes, duties, and levies specified in the Contract of Work. The Company believes that these new 2014 regulations conflict with the Contract of Work. Although PTNNT is continuing to engage with government officials in Indonesia in an effort to resolve this issue and gain clarity on implementation of the new regulations, while also considering other remedies, including possible legal action, the Company can make no assurances that the new regulations will not impact operations and/or outlook. In April 2014, PTNNT received the required approval as a registered exporter from the Ministry of Trade and continues working through the process and engaging with the government to secure the newly required export permit. At this time, operations continue at Batu Hijau. However, to the extent there are continued delays in obtaining approvals for 2014 exports, PTNNT will implement contingency plans to scale back production taking into consideration copper concentrate storage capacity and in-country smelter availability, which would impact the Company's ability to achieve its outlook. For a discussion of this and other factors which could impact future financial performance and operating results in Indonesia, see Item 1A, under the heading “Risk Factors,” of the Company’s Form 10-K, filed on February 21, 2014.

__________

1 Non-GAAP measure. See end of this release for reconciliation to net income.

2 Non-GAAP measure. See end of this release for reconciliation to Costs applicable to sales.

3 Outlook constitutes forward-looking statements, which are subject to risk and uncertainties. See Cautionary note at the end of this release.

4 Such policy is non-binding; declaration of future dividends remains subject to approval and discretion of the Board of Directors.

Operating Results Table

First Quarter Consolidated and Attributable Production and Consolidated CAS and AISC Results

Region  

Q1 2014
Consolidated
Production

 

Q1 2014
Attributable
Production

 

Q1 2014
Consolidated
CAS

 

Q1 2014
Consolidated
AISCa

  (Kozs, Kt)   (Kozs, Kt)   ($/oz, $/lb)   ($/oz, $/lb)
Carlin 228 228 $842 $956
Phoenixb 53 53 $625 $818
Twin Creeksc 96 96 $536 $874
La Herradurad   28   28   $671   $1,087
North America   405   405   $726   $958
Yanacochae 208 107 $1,075 $1,364
La Zanjaf   n/a   15   n/a   n/a
South America   208   122   $1,075   $1,403
Boddington 174 174 $851 $970
Tanami 84 84 $681 $963
Jundee 63 63 $667 $841
Waihi 27 27 $753 $800
KCGMd 90 90 $839 $880
Duketonf   n/a   12   n/a   n/a
Australia/New Zealand   438   450   $783   $942
Batu Hijau, Indonesiae   16   8   $1,283   $2,167
Ahafo 105 105 $554 $864
Akyem   120   120   $311   $361
Africa   225   225   $428   $616
Total Gold   1,292  

1,210

  $751   $1,034
Phoenix 6 6 $2.39 $2.55
Boddington 8 8 $2.63 $3.27
Batu Hijaue   21   10   $2.99   $4.63
Total Copper   35   24   $2.71   $3.67

aAll-in sustaining cost (“AISC”) is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.

bIncludes Lone Tree operations.

cIncludes GTRJV operations.

dBoth consolidated and attributable production are shown on a pro-rata basis with a 44% ownership interest for La Herradura and a 50% ownership for KCGM.

eConsolidated production for Yanacocha and Batu Hijau are presented on a total production basis for the mine site; whereas attributable production represents a 51.35% ownership interest for Yanacocha, and a 48.5% interest for Batu Hijau.

fLa Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.25% ownership interest in Duketon.
 

Outlook Tables

2014 Consolidated and Attributable Production, CAS, AISC, and Capital Outlooka

Region  

2014
Consolidated
Production

 

2014
Attributable
Production

 

2014
Consolidated
CAS

 

2014 All-in
Sustaining
Costsb

 

2014
Consolidated
Capital

  (Kozs, Kt)   (Kozs, kt)   ($/oz, $/lb)   ($/oz, $/t)  

Expenditures
($M)

Carlin 830 - 910 830 - 910 $790 - $860 $275 - $300
Phoenixc 195 - 215 195 - 215 $655 - $715 $30 - $40
Twin Creeksd 330 - 360 330 - 360 $550 - $600 $110 - $130
La Herradurae 185 - 200 185 - 200 $800 - $875 $90 - $100
Other North America                   $20 - $30
North America   1,550 - 1,650   1,550 - 1,650   $720 - $790   $1,045 - $1,135   $540 - $600
Yanacochaf 895 - 985 460 - 500 $725 - $790 $180 - $200
La Zanjag 50 - 60
Other South America                   $25 - $50
South America   895 - 985   510 - 560   $725 - $790   $1,115 - $1,205   $200 - $250
Boddington 665 - 725 665 - 725 $880 - $960 $100 - $115
Tanami 300 - 325 300 - 325 $750 - $825 $90 - $100
Jundee 210 - 230 210 - 230 $765 - $835 $25 - $35
Waihi 100 - 115 100 - 115 $755 - $825 $10 - $20
KCGMe 300 - 330 300 - 330 $990 - $1,080 $30 - $40
Duketong 55 - 65
Other Australia/NZ                   $5 - $15
Australia/New Zealand   1,600 - 1,700   1,650 - 1,750   $855 - $930   $1,045 - $1,135   $275 - $300
Batu Hijau, Indonesiah   135 - 150   60 - 65   $630 - $690   $945 - $1,025   $125 - $150
Ahafo 375 - 410 375 - 410 $580 - $650 $100 - $115
Akyem   415 - 460   415 - 460   $435 - $495       $15 - $25
Africa   790 - 870   790 - 870   $510 - $555   $690 - $755   $115 - $140
Corporate/Other                   $20 - $25
Total Gold   5,000 - 5,350   4,625 - 4,900   $740 - $790   $1,075 - $1,175   $1,300 - $1,400
Phoenix 15 - 25 15 - 25 $2.25 - $2.50
Boddington 25 - 35 25 - 35 $2.50 - $2.80
Batu Hijauh   110 - 125   45 - 55   $1.75 - $2.00        
Total Copper   160 - 175   95 - 110   $2.00 - $2.25   $2.75 - $2.95    
aThe outlook ranges presented herein represent forward looking statements, which are subject to certain risks and uncertainties. See cautionary statement at the end of this release. Additionally, individual site ranges in the table above may not sum to total regional or Company levels to provide for portfolio flexibility.
bAll-in sustaining cost (“AISC”) is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.

cIncludes Lone Tree operations.

dIncludes GTRJV operations.

eBoth consolidated and attributable production are shown on a pro-rata basis with a 44% ownership interest for La Herradura and a 50% ownership for KCGM.

fConsolidated production for Yanacocha is presented on a total production basis for the mine site; whereas attributable production represents a 51.35% ownership interest.

gLa Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.25% ownership interest in Duketon.

hConsolidated production for Batu Hijau is presented on a total production basis for the mine site; whereas attributable production represents an expected 44.5625% ownership interest in 2014 outlook (which assumes completion of the remaining share divestiture). This outlook remains subject to change pending clarification regarding the export regulations issued by the Government of Indonesia, which have the potential to impact future operating plans. See page 5 under the heading Indonesia Update for additional information. The Company’s ability to achieve 2014 outlook and estimates assumes the continuation of current operating plans, receipt of export approvals and other factors.  Additionally, for a discussion of factors which could impact future financial performance and operating results in Indonesia, see Item 1A, under the heading “Risk Factors,” of the Company’s Form 10-K, filed on February 21, 2014.

 

Consolidated and Attributable Production (Moz, kt)

    2014     2015     2016
      Outlook     Outlook     Outlook
Gold (Consolidated Moz)     5.0 – 5.4     5.5 – 5.9     5.5 – 5.9
Gold (Attributable Moz)     4.6 – 4.9     4.8 – 5.2     4.8 – 5.2
Copper (Consolidated kt)     160 – 175     280 – 295     225 – 240
Copper (Attributable kt)     95 - 110     145 - 160     125 – 140
 

Consolidated CAS ($/oz, $/lb)

2014 2015 2016
Region     Outlook     Outlook     Outlook
North America     $720 - $790     $740 - $810     $680 - $740
South America     $725 - $790     $560 - $615     $920 - $1,010
Australia/New Zealand     $855 - $930     $830 - $910     $850 - $925
Batu Hijau, Indonesia     $630 - $690     $380 - $420     $440 - $480
Africa     $510 - $555     $695 - $760     $730 - $800
Total Gold     $740 - $790     $690 - $740     $740 - $790
Total Copper     $2.00 - $2.25     $1.20 - $1.45     $1.40 - $1.65
 

Consolidated AISC ($/oz, $/lb)

2014 2015 2016
Region     Outlook     Outlook     Outlook
North America     $1,045 - $1,135     $955 - $1,045     $835 - $925
South America     $1,115 - $1,205     $900 - $990     $1,450 - $1,540
Australia/New Zealand     $1,045 - $1,135     $975 - $1,065     $985 - $1,075
Batu Hijau, Indonesia     $945 - $1,025     $510 - $590     $575 - $655
Africa     $690 - $755     $875 - $955     $885 - $965
Total Gold     $1,075 - $1,175     $950 - $1,050     $985 - $1,085
Total Copper     $2.75 - $2.95     $1.60 - $1.85     $1.80 - $2.05
 

Consolidated Capital Expenditures ($M)

2014 2015 2016
Region     Outlook     Outlook     Outlook
North America     $540 - $600     $430 - $475     $270 - $295
South America     $200 - $250     $140 - $155     $165 - $180
Australia/New Zealand     $275 - $300     $220 - $245     $190 - $210
Batu Hijau, Indonesia     $125 - $150     $130 - $145     $120 - $130
Africa     $115 - $140     $80 - $90     $80 - $90
Total     $1,300 - $1,400     $1,000 - $1,100     $900 - $1,000
 

2014 Expense Outlook
Description    

2014
Consolidated
Expenses ($M)

       
General & Administrative $175 - $200
Other Expense $150 - $175
Interest Expense $325 - $350
DD&A $1,050 - $1,125
Exploration and Projects $400 - $450
Sustaining Capital $1,200 - $1,300
Tax Rate     37% - 40%
 

 
NEWMONT MINING CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in millions except per share)
   
Three Months Ended
March 31,
2014 2013
 
Sales $ 1,764 $ 2,188
 
Costs and expenses
Costs applicable to sales (1) 1,083 1,057
Amortization 298 267
Reclamation and remediation 20 18
Exploration 34 59
Advanced projects, research and development 42 52
General and administrative 45 56
Other expense, net   52     100  
  1,574     1,609  
Other income (expense)
Other income, net 46 26
Interest expense, net   (93 )   (65 )
  (47 )   (39 )
Income before income and mining tax and other items 143 540
Income and mining tax expense (78 ) (180 )
Equity income (loss) of affiliates   -     (4 )
Income from continuing operations 65 356
Income (loss) from discontinued operations   (17 )   -  
Net income 48 356
Net loss (income) attributable to noncontrolling interests   52     (42 )
Net income attributable to Newmont stockholders $ 100   $ 314  
 
Net income (loss) attributable to Newmont stockholders:
Continuing operations $ 117 $ 314
Discontinued operations   (17 )   -  
$ 100   $ 314  
Income (loss) per common share
Basic:
Continuing operations $ 0.23 $ 0.63
Discontinued operations   (0.03 )   -  
$ 0.20   $ 0.63  
Diluted:
Continuing operations $ 0.23 $ 0.63
Discontinued operations   (0.03 )   -  
$ 0.20   $ 0.63  
 
Cash dividends declared per common share $ 0.150 $ 0.425

__________

(1) Excludes Amortization and Reclamation and remediation.

 

 
NEWMONT MINING CORPORATION
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited, in millions)
 
Three Months Ended
March 31,
2014 2013
Operating activities:
Net income $ 48 $ 356
Adjustments:
Amortization 298 267
Stock based compensation and other non-cash benefits 13 19
Reclamation and remediation 20 18
Loss (income) from discontinued operations 17 -
Impairment of marketable securities 1 4
Deferred income taxes 35 (11 )
Gain on asset and investment sales, net (50 ) (1 )
Other operating adjustments and write-downs 151 74
Net change in operating assets and liabilities   (350 )   (287 )
Net cash provided from continuing operations 183 439
Net cash used in discontinued operations   (3 )   (6 )
Net cash provided from operations   180     433  
Investing activities:
Additions to property, plant and mine development (235 ) (510 )
Acquisitions, net (28 ) (8 )
Sale of marketable securities 25 1
Purchases of marketable securities (1 ) (1 )
Proceeds from sale of other assets 70 25
Other   (9 )   (14 )
Net cash used in investing activities   (178 )   (507 )
Financing activities:
Proceeds from debt, net 3 80
Proceeds from stock issuance, net - 1
Sale of noncontrolling interests - 32
Acquisition of noncontrolling interests (2 ) (6 )
Dividends paid to common stockholders (77 ) (211 )
Other   (4 )   (1 )
Net cash provided from (used in) financing activities   (80 )   (105 )
Effect of exchange rate changes on cash   (2 )   (4 )
Net change in cash and cash equivalents (80 ) (183 )
Cash and cash equivalents at beginning of period   1,555     1,561  
Cash and cash equivalents at end of period $ 1,475   $ 1,378  
 

 
NEWMONT MINING CORPORATION
   
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited, in millions)
 
At March 31, At December 31,
2014 2013
ASSETS
Cash and cash equivalents $ 1,475 $ 1,555
Trade receivables 206 230
Accounts receivable 319 252
Investments 83 78
Inventories 814 717
Stockpiles and ore on leach pads 760 805
Deferred income tax assets 239 246
Other current assets   1,351     1,006  
Current assets 5,247 4,889
Property, plant and mine development, net 14,138 14,277
Investments 393 439
Stockpiles and ore on leach pads 2,723 2,680
Deferred income tax assets 1,416 1,473
Other long-term assets   881     849  
Total assets $ 24,798   $ 24,607  
 
LIABILITIES
Debt $ 615 $ 595
Accounts payable 463 478
Employee-related benefits 247 341
Income and mining taxes 27 13
Other current liabilities   1,532     1,313  
Current liabilities 2,884 2,740
Debt 6,146 6,145
Reclamation and remediation liabilities 1,519 1,513
Deferred income tax liabilities 696 635
Employee-related benefits 333 323
Other long-term liabilities   339     342  
Total liabilities   11,917     11,698  
 
EQUITY
Common stock 798 789
Additional paid-in capital 8,458 8,441
Accumulated other comprehensive income (loss) (205 ) (182 )
Retained earnings   968     945  
Newmont stockholders’ equity 10,019 9,993
Noncontrolling interests   2,862     2,916  
Total equity   12,881     12,909  
Total liabilities and equity $ 24,798   $ 24,607  
 

 
Regional Operating Statistics
Production Statistics Summary
  Three Months Ended March 31,
2014     2013
Consolidated gold ounces produced (thousands):
North America
Carlin 228 231
Phoenix 53 51
Twin Creeks 96 99
La Herradura 28 55
405 436
South America
Yanacocha 208 285
 
Australia/New Zealand
Boddington 174 177
Tanami 84 60
Jundee 63 76
Waihi 27 30
Kalgoorlie 90 78
438 421
Indonesia
Batu Hijau 16 14
 
Africa
Ahafo 105 125
Akyem 120 -
225 125
1,292 1,281
Consolidated copper pounds produced (millions):
Phoenix 12 7
Boddington 17 18
Batu Hijau 48 40
77 65
Consolidated copper tonnes produced (thousands):
Phoenix 6 3
Boddington 8 8
Batu Hijau 21 18
35 29
 

 

Three Months Ended March 31,
2014 2013
Attributable gold ounces produced (thousands):

North America

Carlin 228 231
Phoenix 53 51
Twin Creeks 96 99
La Herradura 28 55
405 436
South America
Yanacocha 107 147
Other South America Equity Interests 15 15
122 162
Australia/New Zealand
Boddington 174 177
Tanami 84 60
Jundee 63 76
Waihi 27 30
Kalgoorlie 90 78
Other Australia/New Zealand Equity Interests 12 14
450 435
Indonesia
Batu Hijau 8 7
 
Africa
Ahafo 105 125
Akyem 120 -
225 125
1,210 1,165
Attributable copper pounds produced (millions):
Phoenix 12 7
Boddington 17 18
Batu Hijau 23 20
52 45
Attributable copper tonnes produced (thousands):
Phoenix 6 3
Boddington 8 8
Batu Hijau 10 9
24 20
 

   
Costs Applicable to Sales
Three Months Ended March 31,
2014 2013

Gold

Costs Applicable to Sales ($/ounce)(1)
North America
Carlin $ 842 $ 806
Phoenix 625 1,199
Twin Creeks 536 544
La Herradura   671   717
  726   766
South America
Yanacocha 1,075 576
 
Australia/New Zealand
Boddington 851 873
Tanami 681 1,247
Jundee 667 710
Waihi 753 920
Kalgoorlie   839   1,006
783 922
Indonesia
Batu Hijau 1,283 993
 
Africa
Ahafo 554 555
Akyem   311   -
428 555
Average $ 751 $ 760
Attributable to Newmont $ 722 $ 781
 

Copper

Costs Applicable to Sales ($/pound)(1)
Phoenix $ 2.39 $ 3.20
Boddington 2.63 2.35
Batu Hijau   2.99   2.05
Average $ 2.71 $ 2.27
Attributable to Newmont $ 2.63 $ 2.34
(1)Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation.
 

   
Capital Expenditures
Three Months Ended March 31,
2014 2013
Consolidated Capital Expenditures ($ million)
North America
Nevada $ 42 $ 46
Phoenix 7 31
Twin Creeks 32 25
La Herradura 6 19
Other North America   5   4
  92   125
South America
Yanacocha 13 48
Other South America   7   86
  20   134
Australia/New Zealand
Boddington 20 25
Kalgoorlie 20 23
Jundee 7 13
Tanami 3 3
Waihi 1 1
Other Australia/New Zealand   1   1
  52   66
Indonesia
Batu Hijau   15   23
  15   23
 
Africa
Ahafo 22 60
Akyem   1   66
  23   126
Corporate and Other   6   23
Total - Accrual Basis $ 209 $ 497
Change in Capital Accrual   26   13
Total - Cash Basis $ 235 $ 510
Attributable to Newmont (Accrual Basis) $ 191 $ 420
 

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 (loss) to GAAP Net Income (loss)

Management of the Company uses 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 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. 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 March 31,
2014   2013
Net income attributable to Newmont stockholders $ 100 $ 314
Discontinued operations loss 17 -
Restructuring and other 3 5
Impairments 1 4
Asset Sales (13 ) -
TMAC transaction costs   -     30  
Adjusted net income $ 108   $ 353  
Adjusted net income per share, basic $ 0.22 $ 0.70
Adjusted net income per share, diluted $ 0.22 $ 0.71
 

CAS 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 percent 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 on 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 associated non-gold revenues to our cost structure.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

 
Costs applicable to sales per ounce/pound
  Gold   Copper
Three Months Ended March 31, Three Months Ended March 31,
2014   2013 2014   2013
 
Costs applicable to sales:
Consolidated per financial statements $ 960 $ 951 $ 123 $ 106
Noncontrolling interests(1)   (112 )   (82 )   (29 )   (23 )
Attributable to Newmont $ 848   $ 869   $ 94   $ 83  
 
Gold/Copper sold (thousand ounces/million pounds):
Consolidated 1,278 1,252 45 47
Noncontrolling interests(1)   (103 )   (139 )   (10 )   (12 )
Attributable to Newmont   1,175     1,113     35     35  
 
Costs applicable to sales per ounce/pound:
Consolidated $ 751 $ 760 $ 2.71 $ 2.27
Attributable to Newmont $ 722 $ 781 $ 2.63 $ 2.34
 
 
Net attributable costs applicable to sales per ounce
Three Months Ended March 31,
2014 2013
 
Attributable costs applicable to sales:
Gold $ 848 $ 869
Copper   94     83  
  942     952  
 
Copper revenue:
Consolidated (113 ) (146 )
Noncontrolling interests(1)   22     36  
  (91 )   (110 )
Net attributable costs applicable to sales $ 851   $ 842  
 
Attributable gold ounces sold (thousands) 1,174 1,113
 
Net attributable costs applicable to sales per ounce $ 725 $ 757
 
(1)Relates to partners' interests in Batu Hijau and Yanacocha.
 

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow from operations.

Current GAAP-measures used in the gold industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop, and sustain gold production. Therefore, we believe that All-in sustaining costs and attributable All-in sustaining costs are non-GAAP measures that provide additional information to management, investors, and analysts that aid in the understanding of the economics of our operations and performance compared to other gold producers and in the investor’s visibility by better defining the total costs associated with producing gold.

All-in sustaining cost (“AISC”) amounts 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 as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in International Financial Reporting Standards (“IFRS”), or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the All-in sustaining costs measure:

Cost Applicable to Sales - Includes all direct and indirect costs related to current gold production incurred to execute the current mine plan. Costs Applicable to Sales (“CAS”) includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Statement of Consolidated Income. In determining All-in sustaining costs, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Statement of Consolidated Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington, and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 3 – Segments that accompanies the Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines is based upon the relative sales percentage of copper and gold sold during the period.

Remediation Costs - Includes accretion expense related to asset retirement obligations (“ARO”) and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties recorded as an ARC asset. Accretion related to ARO and the amortization of the ARC assets for reclamation and remediation do not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation and remediation associated with current gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

Advanced Projects and Exploration - Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold exploration. We note that as current resources are depleted, exploration and advance projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves. As this relates to sustaining our gold production, and is considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Company’s Statement of Consolidated Income less the amount attributable to the production of copper at our Phoenix, Boddington, and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

General and Administrative - Includes cost related to administrative tasks not directly related to current gold production, but rather related to support our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis.

Other Expense, net - Includes costs related to regional administration and community development to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

Treatment and Refining Costs - Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable precious metal. These costs are presented net as a reduction of Sales.

Sustaining Capital - We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the breakout of sustaining and development capital costs based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington, and Batu Hijau mines.

                   

Three Months Ended
March 31, 2014

Costs
Applicable
to
Sales(1)(2)(3)

Remediation
Costs(4)

Advanced
Projects and
Exploration

General and
Administrative
Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)
All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold(7)

All-In
Sustaining
Costs
per oz/lb

GOLD
Carlin $ 192 $ 1 $ 4 $ - $ 1 $ - $ 20 $ 218 228 $ 956
Phoenix 34 - 1 - 1 2 7 45 55 818
Twin Creeks 55 1 1 - 1 - 32 90 103 874
La Herradura 16 1 4 - - - 4 25 23 1,087
Other North America   -   -   6   -   3   -   5   14 -   -
North America   297   3   16   -   6   2   68   392 409   958
 
Yanacocha 221 30 7 - 9 - 14 281 206 1,364
Other South America   -   -   8   -   -   -   -   8 -   -
South America   221   30   15   -   9   -   14   289 206   1,403
Attributable to Newmont   150 106   1,415
 
Boddington 142 3 - - 1 1 15 162 167 970
Tanami 55 1 1 - 1 - 20 78 81 963
Jundee 42 3 1 - - - 7 53 63 841
Waihi 19 - - - - - 1 20 25 800
Kalgoorlie 77 1 1 - - - 2 81 92 880
Other Australia/New Zealand   -   -   1   -   8   -   -   9 -   -
Australia/New Zealand   335   8   4   -   10   1   45   403 428   942
 
Batu Hijau   8   1   -   -   1   1   2   13 6   2,167
Indonesia   8   1   -   -   1   1   2   13 6   2,167
Attributable to Newmont   7 3   2,167
 
Ahafo 61 1 9 - 3 - 21 95 110 864
Akyem 38 - - - 3 - 2 43 119 361
Other Africa   -   -   2   -   1   -   -   3 -   -
Africa   99   1   11   -   7   -   23   141 229   616
 
Corporate and Other   -   -   29   45   6   -   4   84 -   -
Total Gold   960   43   75   45   39   4   156   1,322 1,278   1,034
Attributable to Newmont $ 1,177 1,175 $ 1,002
 
COPPER
Phoenix 26 - - - - 1 1 $ 28 11 $ 2.55
Boddington 40 1 - - - 5 3 49 15 3.27
Batu Hijau   57   5   1   -   7   5   13   88 19   4.63
Total Copper   123   6   1   -   7   11   17   165 45   3.67
Attributable to Newmont $ 120 35 $ 3.43
Consolidated $ 1,083 $ 49 $ 76 $ 45 $ 46 $ 15 $ 173 $ 1,487
(1)    

Excludes Amortization and Reclamation and remediation.

(2) Includes by-product credits of $23.
(3)

Includes planned stockpile and leach pad inventory adjustments of $20 at Carlin, $2 at Twin Creeks, $35 at Yanacocha, $25 at Boddington, and $29 at Batu Hijau.

(4) Remediation costs include operating accretion of $18 and amortization of asset retirement costs of $31.
(5) Other expense, net is adjusted for restructuring of $7.
(6) Excludes development capital expenditures, capitalized interest, and the decrease in accrued capital of $62. The following are major development projects; Turf Vent Shaft, Conga, and Merian for 2014.
(7) Excludes attributable gold sales from La Zanja and Duketon.
 

                   

Three Months Ended
March 31, 2013

Costs
Applicable
to
Sales(1)(2)(3)

Remediation
Costs(4)

Advanced
Projects and
Exploration

General and
Administrative

Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)

All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold(7)

All-In
Sustaining
Costs
per oz/lb

GOLD
Carlin $ 179 $ 1 $ 11 $ - $ 2 $ - $ 34 $ 227 222 $ 1,023
Phoenix 41 - 3 - 1 2 1 48 34 1,412
Twin Creeks 52 1 3 - 1 - 19 76 96 792
La Herradura 40 - 6 - - - 9 55 56 982
Other North America   -   -   8   -   2   -   3   13 -   -
North America   312   2   31   -   6   2   66   419 408   1,027
 
Yanacocha 160 23 13 - 10 - 37 243 278 874
Other South America   -   -   3   -   -   -   -   3 -   -
South America   160   23   16   -   10   -   37   246 278   885
Attributable to Newmont   127 143   888
 
Boddington 174 2 - - - 1 22 199 200 995
Tanami 75 1 2 - - - 23 101 60 1,683
Jundee 54 4 4 - - - 12 74 76 974
Waihi 28 1 1 - - - 2 32 30 1,067
Kalgoorlie 75 2 1 - - - 2 80 74 1,081
Other Australia/New Zealand   -   -   4   -   9   -   1   14 -   -
Australia/New Zealand   406   10   12   -   9   1   62   500 440   1,136
 
Batu Hijau   7   -   1   -   2   1   3   14 7   2,000
Indonesia   7   -   1   -   2   1   3   14 7   2,000
Attributable to Newmont   7 3   2,000
 
Ahafo 66 1 13 - - - 42 122 119 1,025
Akyem - - 3 - - - - 3 - -
Other Africa   -   -   2   -   7   -   -   9 -   -
Africa   66   1   18   -   7   -   42   134 119   1,126
 
Corporate and Other   -   -   27   56   6   -   2   91 -   -
Total Gold   951   36   105   56   40   4   212   1,404 1,252   1,121
Attributable to Newmont $ 1,278 1,113 $ 1,148
 
COPPER
Phoenix 11 - 1 - 1 1 1 $ 15 4 $ 3.75
Boddington 48 1 - - - 5 5 59 20 2.95
Batu Hijau   47   2   5   -   5   6   20   85 23   3.70
Total Copper   106   3   6   -   6   12   26   159 47   3.38
Attributable to Newmont   115 35 $ 3.29
Consolidated $ 1,057 $ 39 $ 111 $ 56 $ 46 $ 16 $ 238 $ 1,563
(1)    

Excludes Amortization and Reclamation and remediation.

(2) Includes by-product credits of $30.
(3)

Includes stockpile and leach pad inventory adjustments of $4 at Yanacocha, $1 at Tanami, and $2 at Waihi

(4) Remediation costs include operating accretion of $15 and amortization of asset retirement costs of $24.
(5) Other expense, net is adjusted for restructuring of $9 and TMAC transaction costs of $45.
(6) Excludes development capital expenditures, capitalized interest, and the decrease in accrued capital of $272. The following are major development projects; Phoenix Copper Leach, Turf Vent Shaft, Vista Vein, La Herradura Mill, Yanacocha Bio Leach, Conga, Merian, Ahafo North, Ahafo Mill Expansion, Subika Underground, and Akyem for 2013.
(7) Excludes attributable gold sales from La Zanja and Duketon.
 

Conference Call Information

A conference call will be held on Friday, April 25, 2014 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 800.369.1917
Intl Dial-In Number 210.234.0025
Leader Kirsten Benefiel
Passcode Newmont
Replay Number 800.685.9501
Intl Replay Number 203.369.3318
Replay Passcode 2014
 

Webcast Details

 
URL

http://event.on24.com/r.htm?e=768036&s=1&k=599B4D88E5C120C46D61C5E8DBA322F3

 

The first quarter 2014 results and related financial and statistical information will be available after the market close on Thursday, April 24, 2014 on the “Investor Relations” section of the Company’s web site, www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.

Cautionary Statement Regarding Forward Looking Statements, Including Outlook:

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 of future production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) plans and expectations to reduce costs and expenditures; (v) expectations regarding the development, growth and exploration potential of the Company’s projects; and (vi) expectations regarding the timing and/or likelihood of closing the term loan. 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, including without limitation receipt of export approvals; (iii) political 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 the 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 (vii) the accuracy of our current mineral reserve and mineral resource estimates. 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, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2013 Annual Report on Form 10-K, filed on February 21, 2014, 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.

Contacts

Newmont Mining Corporation
Investor Contacts
Kirsten Benefiel, 303.837.6117
kirsten.benefiel@newmont.com
or
Allysa Howell, 303.837.5788
allysa.howell@newmont.com
or
Media Contacts
Omar Jabara, 303.837.5114
omar.jabara@newmont.com
or
Diane Reberger, 303.967.9455
diane.reberger@newmont.com

Sharing

Contacts

Newmont Mining Corporation
Investor Contacts
Kirsten Benefiel, 303.837.6117
kirsten.benefiel@newmont.com
or
Allysa Howell, 303.837.5788
allysa.howell@newmont.com
or
Media Contacts
Omar Jabara, 303.837.5114
omar.jabara@newmont.com
or
Diane Reberger, 303.967.9455
diane.reberger@newmont.com