This release should be read in conjunction with Newmont's Second Quarter 2008 Form 10-Q filed with the Securities and Exchange Commission on July 24, 2008 (available at www.newmont.com). DENVER, July 24
DENVER, July 24 /PRNewswire-FirstCall/ -- Newmont Mining Corporation
(NYSE: NEM) today announced second quarter results, with gold sales of
1.27 million equity ounces at an average realized gold price of $900 per ounce
and costs applicable to sales of $440 per ounce, resulting in Adjusted net
income(1) of $230 million ($0.51 per share), compared to Adjusted net
income(1) of $103 million ($0.23 per share) in the year ago quarter. Net
income on a GAAP basis was $277 million ($0.61 per share) during the second
quarter, compared with a net loss of $2.1 billion (-$4.57 per share) in the
year ago quarter.
Second Quarter 2008 Highlights:
-- Adjusted net income(1) increased 123% to $230 million ($0.51 per
share) from $103 million ($0.23 per share) in the year ago quarter;
-- Adjusted net cash provided from continuing operations(1) increased 87%
to $382 million ($0.84 per share) from $204 million ($0.45 per share)
in the year ago quarter;
-- Costs applicable to sales(2) were $440 per ounce compared to $417 per
ounce in the year ago quarter;
-- Revenues increased 19% from the year ago quarter to $1.5 billion at an
average realized gold price of $900 per ounce, compared with an
average realized gold price of $665 per ounce in the year ago quarter;
-- The Yanacocha gold mill and Nevada power plant began commercial
production, with both projects successfully completed on or ahead of
schedule and at or below forecasted costs; and
-- Realized tax benefit(3) of $129 million, net, resulting in a lower
expected 2008 tax rate of between 22% and 26%.
Richard O'Brien, President and Chief Executive Officer, said, "Our
continued focus on cost control and operational execution has produced another
quarter of strong results that are in-line with our plans, despite the
industry-wide challenge of escalating operating and capital costs. Our
capital project execution also continues to improve, as both the Yanacocha
gold mill and the Nevada power plant were completed on or ahead of schedule
and at or below forecasted costs. By leveraging our global resources,
experience, and strategic partnerships, we were able to successfully complete
our projects and transition from project development to commercial production
in a challenging construction environment."
The Company is maintaining its initial 2008 annual equity gold sales
guidance at between 5.1 and 5.4 million ounces and its initial costs
applicable to sales guidance of between $425 and $450 per ounce. The
Company's costs applicable to sales forecast for 2008 now assumes an oil price
of $125 per barrel and an Australian dollar exchange rate of 0.95 for the
balance of the year. Costs applicable to sales are expected to change by
approximately $4 per ounce for every $10 change in the oil price and by
roughly $3 per ounce for every 0.10 change in the Australian dollar exchange
rate during the remainder of the year.
As of June 30, 2008, the Company had hedged approximately 44% of the
remaining 2008 forecasted Australian dollar denominated operating costs at an
average exchange rate of 0.87. Additionally, the Company's cash distributions
from its holdings in the Canadian Oil Sands Trust are currently expected to
offset approximately 25% of the Company's oil exposure.
(1) See reconciliation from Adjusted financial measures to comparable
GAAP measures on page 9 of this earnings release.
(2) Excludes Loss on settlement of price-capped forward sales contracts,
Amortization and Accretion.
(3) Details of the realized tax benefit are outlined in the Consolidated
Financial Results section of the Company's Form 10-Q filed with the
Securities and Exchange Commission and available at
http://www.newmont.com.
REGIONAL OPERATIONS
In the second quarter of 2008, the Company reported equity gold sales of
1.27 million ounces at costs applicable to sales of $440 per ounce. The
Company's operations delivered equity gold sales slightly above management's
expectations during the second quarter, as higher than expected equity sales
in the Australia/New Zealand region and at Ahafo offset lower than expected
equity sales at Batu Hijau and Yanacocha. The Company's second quarter costs
applicable to sales per ounce were impacted by higher than expected costs at
Nevada, Yanacocha and Batu Hijau, offset by lower than expected costs in the
Australia/New Zealand region and at Ahafo.
Nevada - Nevada sold 554,000 equity ounces at costs applicable to sales of
$430 per ounce during the second quarter. Equity sales were in-line with
expectations, as stockpiled inventory reductions offset production shortfalls
from the unplanned shut-down of the third party operated Getchell mine and the
Yukon-Nevada Gold processing facility. Gold production was slightly lower
than plan due to the timing of ore recoveries from the Twin Creeks leach pads.
The Company expects this production to be realized during the second half of
this year. Costs applicable to sales during the second quarter were in-line
with expectations, as higher than expected mining costs from processing
higher-cost stockpile inventory as well as higher fuel and underground
contract services were offset by higher by-product credits.
Phoenix Revised Plan - Phoenix sold 54,100 ounces of gold at costs
applicable to sales of $361 per ounce during the second quarter, compared to
39,700 ounces at costs applicable to sales of $844 per ounce in the year ago
quarter. The cost improvements were driven by increased copper and silver
by-product credits and increased mill throughput.
The Company has spent the past year completing studies at Phoenix, focused
on resolving issues with gold grade reconciliation, complex copper mineralogy,
rock hardness, and operating and design inefficiencies. The Company has
completed an extensive re-drilling program and has incorporated the results
into a new mine plan that more accurately defines the ore body. Based on the
updated mine plan and current commodity price assumptions, equity gold
production during the next five-years is currently expected to average
approximately 200,000 to 250,000 ounces per annum at costs applicable to sales
of approximately $400 to $500 per ounce, net of by-product credits. The
Company will continue to focus on productivity and cost improvements, process
optimization opportunities, and near mine exploration.
Commercial Operation at Nevada Power Plant - The 200 megawatt coal-fired
power plant achieved commercial production on May 1, 2008. The Company
expects to save approximately $70 to $80 million per year in costs applicable
to sales from the lower cost of self-generated electricity, compared to
purchasing power in the current market. Capital costs for the power plant are
expected to be approximately $620 million, at the low-end of previous guidance
of $620 to $640 million.
Yanacocha - Equity gold sales during the second quarter at Yanacocha in
Peru were 222,000 ounces at costs applicable to sales of $374 per ounce.
Equity sales were slightly below expectations, as marginally lower production
was offset by inventory reductions. Leach placement at the end of the second
quarter was ahead of plan due to a change in mine sequence, with slightly
higher production anticipated during the second half of 2008.
Commercial Operation at Gold Mill - The gold mill achieved commercial
production on April 1, 2008. Production from the mill contributed
approximately 40,000 ounces to equity gold sales during the second quarter,
with mill ramp-up exceeding expectations. During the first five years of
operation, the design throughput is expected to be approximately 5 million
tons per annum with gold and silver recoveries averaging between 75% and 85%
and between 60% and 75%, respectively. Equity gold production from the mill
is currently expected to average approximately 200,000 to 250,000 ounces per
annum at costs applicable to sales of approximately $250 to $320 per ounce.
Capital costs are expected to be approximately $230 million, below previous
guidance of $250 to $270 million.
Australia/New Zealand - Equity gold sales in Australia/New Zealand were
301,000 ounces at costs applicable to sales of $565 per ounce. Equity gold
sales exceeded expectations due to higher grades at Jundee and Tanami, more
than offseting lower than planned production at Kalgoorlie. Australia/New
Zealand costs applicable to sales are expected to change by roughly $13 per
ounce for every 0.10 change in the Australian dollar exchange rate during the
remainder of the year.
Batu Hijau - Equity gold and copper sales at Batu Hijau in Indonesia were
17,000 ounces and 23 million pounds, respectively, at costs applicable to
sales of $518 per ounce and $2.02 per pound, respectively. Sales were below
expectations due to reduced production from lower throughput and recovery.
The de-watering program, developed to address the significant rainfall during
the first quarter, has yielded better than expected results and may contribute
to increased production during the dry season in the second half of the year,
potentially offsetting portions of the second quarter shortfall. Total costs
applicable to sales were consistent with expectations, with higher unit costs
largely driven by lower sales volume during the second quarter.
Ahafo - Equity gold sales at Ahafo in Ghana were 134,000 ounces at costs
applicable to sales of $390 per ounce. Equity gold sales were in-line with
plan, as higher than expected ore grades from the Subika and Apensu pits and
inventory sales were offset by lower than expected throughput. The Company
has revised its expected costs applicable to sales guidance at Ahafo to
between $450 and $500 per ounce, compared to original guidance of between $485
and $520 per ounce. The revised guidance is primarily driven by greater than
expected capitalization of the cost of waste rock placed for the construction
of tails and other facilities, lower than expected power costs, as higher than
anticipated power was available from the Volta River Authority (VRA), and
lower than anticipated labor costs. These favorable variances are partially
offset by the rate increase for power supplied by the VRA starting on July 1,
2008. The Company continues to negotiate the price per kilowatt hour with the
VRA; however, the Company has included in its revised guidance a potential
increase to 2008 costs applicable to sales of approximately $15 to $30 per
ounce for power.
Regional operating variances from the year ago quarter, as disclosed in
the Company's previous earnings releases, are outlined in the Results of
Consolidated Operations section of the Company's Form 10-Q filed with the
Securities and Exchange Commission and available at http://www.newmont.com.
CAPITAL UPDATE
Consolidated capital expenditures were $448 million during the second
quarter, with approximately 50% attributed to the Boddington project in
Australia. The Company has updated its 2008 consolidated capital expenditure
guidance to between $1.7 and $2.0 billion, compared to original guidance of
between $1.8 and $2.0 billion, primarily due to the deferral of capital
expenditures in Indonesia.
Boddington - Development of the Boddington project in Australia was
approximately 77% complete at the end of the second quarter, with start-up
expected in late 2008 or early 2009. The Company's expected share of total
capital costs of between $1.4 and $1.6 billion continues to be pressured by
the strengthening Australian dollar and the industry-wide labor and commodity
cost pressures. The Company will continue to monitor the impact of the strong
Australian currency and other inflationary pressures on the capital cost
estimate and will provide an update during its third quarter conference call.
As of June 30, 2008, the Company has hedged approximately 63% of the remaining
forecasted Australian dollar denominated capital costs at an average exchange
rate of 0.90.
Batu Hijau - The Company has deferred capital associated with a planned
mill expansion due to the delay in the Indonesian government's renewal of the
Company's forest use permit. The Company now expects capital expenditures of
approximately $80 to $120 million, down from previous guidance of between $145
and $195 million.
A detailed explanation of regional capital expenditures during the second
quarter is outlined in the Liquidity and Capital Resources section of the
Company's Form 10-Q filed with the Securities and Exchange Commission and
available at http://www.newmont.com.
STATEMENTS OF CONSOLIDATED INCOME (LOSS)
Three Months Six Months
Ended June 30, Ended June 30,
20082007 20082007
(unaudited, in millions,
except per share)
Revenues
Sales - gold, net $1,339 $936 $2,850 $1,947
Sales - copper, net 183 340 615 553
1,5221,276 3,4652,500
Costs and expenses
Costs applicable to sales -
gold (1) 655 586 1,2961,216
Costs applicable to sales -
copper (1) 104 128 254 251
Loss on settlement of price-capped
forward sales contracts- 531 - 531
Amortization 184 186 366 365
Accretion 88 16 15
Exploration59 46 98 85
Advanced projects, research and
development 39 13 69 29
General and administrative 37 34 66 67
Write-down of investments 34- 56-
Other expense, net118 78 181 128
1,2381,610 2,4022,687
Other income (expense)
Other income, net 53 37 90 54
Interest expense, net of
capitalized interest (27) (25)(47) (49)
26 12 435
Income (loss) from continuing
operations before income tax,
minority interest and equity loss
of affiliates 310 (322) 1,106 (182)
Income tax benefit (expense) 37 19(198) (25)
Minority interest in income of
consolidated subsidiaries (68) (98) (260)(154)
Equity loss of affiliates -- (5) -
Income (loss) from continuing
operations 279 (401)643 (361)
(Loss) income from discontinued
operations (2) (1,661) 4 (1,633)
Net income (loss) $277 $(2,062) $647 $(1,994)
Income (loss) per common share
Basic:
Income (loss) from continuing
operations $0.61 $(0.89) $1.42 $(0.80)
Income (loss) from
discontinued operations-(3.68) 0.01(3.62)
Net income (loss)$0.61 $(4.57) $1.43 $(4.42)
Diluted:
Income (loss) from continuing
operations $0.61 $(0.89) $1.41 $(0.80)
Income (loss) from
discontinued operations -(3.68) 0.01(3.62)
Net income (loss)$0.61 $(4.57) $1.42 $(4.42)
Basic weighted-average common shares
outstanding454 451 454 451
Diluted weighted-average common
shares outstanding 456 451 457 451
Cash dividends declared per common
share$0.10$0.10 $0.20$0.20
(1) Exclusive of Loss on settlement of price-capped forward sales
contracts, Amortization and Accretion.
The Company's financial statements can be found on its website at
http://www.newmont.com.
CONSOLIDATED BALANCE SHEETS
At June 30, At December 31,
20082007
(unaudited, in millions)
ASSETS
Cash and cash equivalents $1,036$1,231
Marketable securities and other
short-term investments7261
Trade receivables 251 177
Accounts receivable 159 168
Inventories 454 463
Stockpiles and ore on leach pads 367 373
Deferred income tax assets102 112
Other current assets 40687
Current assets 2,847 2,672
Property, plant and mine development, net 10,032 9,140
Investments 1,933 1,527
Long-term stockpiles and ore on leach pads901 788
Deferred income tax assets 1,070 1,027
Other long-term assets271 234
Goodwill 186 186
Assets of operations held for sale 324
Total assets $17,243 $15,598
LIABILITIES
Current portion of long-term debt$261 $255
Accounts payable 321 339
Employee-related benefits 147 153
Income and mining taxes 15288
Other current liabilities 735 665
Current liabilities 1,616 1,500
Long-term debt 3,085 2,683
Reclamation and remediation liabilities 664 623
Deferred income tax liabilities 1,277 1,025
Employee-related benefits 212 226
Other long-term liabilities 153 150
Liabilities of operations held for sale94 394
Total liabilities 7,101 6,601
Minority interests in subsidiaries 1,547 1,449
STOCKHOLDERS' EQUITY
Common stock 703 696
Additional paid-in capital 6,651 6,696
Accumulated other comprehensive income 1,395 957
Retained deficit (154) (801)
Total stockholders' equity 8,595 7,548
Total liabilities and stockholders'
equity $17,243 $15,598
The Company's financial statements can be found on its website at
http://www.newmont.com.
STATEMENTS OF CONSOLIDATED CASH FLOW
Three Months Ended Six Months Ended
June 30,June 30,
2008 2007 20082007
(unaudited, in millions)
Operating activities:
Net income (loss) $277 $(2,062)$647 $(1,994)
Adjustments to reconcile net income
(loss) to net cash from continuing
operations:
Amortization 184 186 366 365
Loss (income) from discontinued
operations 2 1,661 (4) 1,633
Accretion of accumulated reclamation
obligations 1110 21 19
Deferred income taxes(155) (199)(203)(143)
Write-down of investments 34 - 56-
Stock based compensation and other
benefits 1312 24 25
Minority interest in income of
consolidated subsidiaries 6898 260 154
Gain on asset sales, net (9) (2) (13) (4)
Other operating adjustments and
write-downs 6737 86 47
Net change in operating assets and
liabilities (110) (391)(264)(726)
Net cash provided from (used in)
continuing operations382 (650) 976 (624)
Net cash (used in) provided from
discontinued operations (12) 29 (112) 61
Net cash provided from (used in)
operations 370 (621) 864 (563)
Investing activities:
Additions to property, plant and mine
development (448) (350)(897)(710)
Investments in marketable debt and
equity securities (14) (5) (17)(158)
Proceeds from sale of marketable debt
and equity securities 1710 17 134
Acquisitions, net(7)- (325) -
Cash received on repayment of Batu
Hijau carried interest - 161- 161
Other (19)4 (16) 5
Net cash used in investing activities
of continuing operations(471) (180) (1,238)(568)
Net cash (used in) provided from
investing activities of discontinued
operations(3) 76 (6) 74
Net cash used in investing activities(474) (104) (1,244)(494)
Financing activities:
Proceeds from debt, net 451 1,1611,0231,161
Repayment of debt (251) (397)(627)(418)
Dividends paid to common stockholders (46) (45) (91) (90)
Dividends paid to minority interests(49) (114)(147)(115)
Proceeds from stock issuance 7 5 24 14
Change in restricted cash and other 6(6) 72
Net cash provided from financing
activities 118 604 189 554
Effect of exchange rate changes on cash 8 3 (4) 5
Net change in cash and cash equivalents22 (118)(195)(498)
Cash and cash equivalents at
beginning of period1,014 7861,2311,166
Cash and cash equivalents at end of
period$1,036 $668 $1,036 $668
The Company's financial statements can be found on its website at
http://www.newmont.com. Detailed explanation of the Company's cash flow
statement is outlined in the Liquidity and Capital Resources section of the
Form 10-Q filed with the Securities and Exchange Commission and available at
http://www.newmont.com.
SALES STATISTICS
Three Months Six Months
Ended June 30, Ended June 30,
2008 20072008 2007
Gold
Consolidated ounces sold (thousands)
Nevada (1) 554 5311,0801,091
Yanacocha 432 312 972 767
Australia/New Zealand
Jundee 109 71 200 133
Tanami95 130 190 243
Kalgoorlie63 70 132 165
Waihi 34 27 65 41
301 298 587 582
Batu Hijau (2) 37 90 157 174
Ahafo (3) 134 123 239 248
Other
Kori Kollo21 22 41 46
La Herradura 25 23 49 45
Golden Giant -9- 12
46 54 90 103
1,5041,4083,1252,965
Equity ounces sold (thousands)
Nevada (1) 554 5311,0801,091
Yanacocha 222 160 499 394
Australia/New Zealand
Jundee 109 71 200 133
Tanami95 130 190 243
Kalgoorlie63 70 132 165
Waihi 34 27 65 41
301 298 587 582
Batu Hijau (2) 17 44 71 89
Ahafo (3) 134 123 239 248
Other
Kori Kollo18 20 36 41
La Herradura 25 23 49 45
Golden Giant -9- 12
43 52 85 98
1,2711,2082,5612,502
Discontinued Operations
Pajingo- 40- 88
1,2711,2482,5612,590
Copper
Batu Hijau pounds sold (millions) (2)
Consolidated 51 97 157 188
Equity23 48 70 96
(1) Includes incremental start-up ounces of 1 in the first half of 2008.
(2) Economic interest decreased to 45% from 52.875% on May 25, 2007.
(3) Includes incremental start-up ounces of 16 in the second quarter and
first half of 2008.
This information and other detailed regional production statistics can be
found in the Regional Operating Statistics section of the Company's website at
http://www.newmont.com.
CAS AND CONSOLIDATED CAPITAL EXPENDITURES STATISTICS
Three MonthsSix Months
Ended June 30,Ended June 30,
2008 2007 2008 2007
Gold
Costs Applicable to Sales ($/ounce)(1)
Nevada $430 $478 $420 $481
Yanacocha374 392 339 326
Australia/New Zealand
Jundee 401 502 410 530
Tanami 605 382 565 402
Kalgoorlie 860 494 817 553
Waihi 441 417 448 478
565 440 555 479
Batu Hijau 518 213 358 263
Ahafo390 364 425 344
Other Operations
Kori Kollo 474 354 461 343
La Herradura 388 264 357 293
Golden Giant - 172- 177
428 286 404 302
Average $440 $417 $417 $410
Copper
Costs Applicable to Sales
($/pound) (1)
Batu Hijau $2.02$1.33$1.62$1.34
Three Months Six Months
Ended June 30,Ended June 30,
2008 2007 2008 2007
Capital Expenditures ($ million)
Nevada $80 $119 $172 $277
Yanacocha38 58 77 114
Australia/New Zealand 236 128 468 224
Batu Hijau 32 17 61 24
Africa 35 19 68 56
Hope Bay 21- 30-
Other Operations 35 168
Corporate and Other 3457
Total $448 $350 $897 $710
(1) Excludes Loss on settlement of price-capped forward sales contracts,
Amortization and Accretion. Beginning in 2008, regional
administrative, community development, marketing, and accretion costs
have been classified outside of costs applicable to sales. Amounts
for 2007 have been reclassified to conform to the 2008 presentation.
This information and other detailed regional production statistics can be
found in the Regional Operating Statistics section of the Company's website at
http://www.newmont.com.
SUPPLEMENTAL INFORMATION
Classification Reporting Changes - Certain amounts for the three and six
months ended June 30, 2007 have been reclassified to conform to the 2008
presentation. The Company reclassified the World Gold Council dues from
General and administrative to Other expense, net, reclassified Accretion from
Costs applicable to sales to a separate Accretion line item, reclassified
regional administrative and community development from Costs applicable to
sales to Other expense, net and reclassified marketing costs from Costs
applicable to sales to General and administrative. The Consolidated Statements
of Income (Loss) and the Consolidated Statements of Cash Flows have also been
reclassified for discontinued operations. These changes were reflected for all
periods presented.
Reconciliation of Adjusted Net Income and Adjusted Net cash provided from
continuing operations to GAAP Net Income and GAAP Net cash provided from (used
in) operations, respectively - Management of the Company uses the non-GAAP
financial measures Adjusted net income and Adjusted net cash provided from
continuing operations to evaluate the Company's operating performance, and for
planning and forecasting future business operations. The Company believes the
use of Adjusted net income and Adjusted net cash provided from continuing
operations 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 and Adjusted net cash provided from
continuing operations are evaluated periodically and based, in part, on a
review of non-GAAP financial measures used by mining industry analysts.
Adjusted net income and Adjusted net cash provided from continuing
operations are not, and should not be used as, alternatives to GAAP Net income
and GAAP Net cash measures as reflected in the consolidated financial
statements of the Company. Neither is a measure of financial performance
under GAAP and these measures should not be considered in isolation or as a
substitute to performance measures calculated in accordance with GAAP. The
tables below set forth a reconciliation of Adjusted net income to GAAP Net
income and of Adjusted net cash provided from continuing operations to GAAP
Net cash provided from (used in) continuing operations, which are the most
directly comparable GAAP financial measures.
Description ($ million
expect per share, Per Per
after-tax) Q2 2008 Share Q2 2007 Share
Adjusted Net income $230$0.51 $103$0.23
Income taxes 129 0.28--
Legacy reclamation
obligations (41) (0.09) (11) (0.02)
Write-down of marketable
securities(34) (0.08) --
Western Australia gas
interruption (5) (0.01) --
Settlement of gold
contracts -- (460) (1.02)
Batu Hijau minority
loan repayment -- (25) (0.06)
Senior management
retirement -- (8) (0.02)
GAAP Income from continuing
operations $279$0.61$(401) $(0.89)
Income from discontinued
operations (2) - (1,661) (3.68)
GAAP Net income $277$0.61 $(2,062) $(4.57)
Description ($ million
expect per share, Per Per
after-tax) Q2 2008 Share Q2 2007 Share
Adjusted Net cash provided
from continuing
operations $382$0.84 $204$0.45
Pre-tax settlement of
price-capped forward
sales contracts -- (578) (1.28)
Settlement of pre-acquisition
Australian income taxes
of Normandy -- (276) (0.61)
GAAP Net cash provided from
(used in) continuing
operations $382$0.84 $ (650) $(1.43)
Net cash (used in) provided
from discontinued
operations(12) (0.02) 29 0.06
GAAP Net cash provided
from (used in)
operations $370$0.82$(621) $(1.37)
2008 Annual Guidance -
Description Jun 2008 Apr 2008 Feb 2008
Equity gold sales
(thousand ounces) 5,100 - 5,400 5,100 - 5,400 5,100 - 5,400
Costs applicable to
sales ($/ounce) $425 - $450 $425 - $450 $425 - $450
Equity copper sales
(million pounds) 125 - 150 125 - 150 155 - 165
Costs applicable to
sales ($/pound)$1.50 - $1.75 $1.50 - $1.75 $1.30 - $1.40
Consolidated capital
expenditures
($ million) $1,700 - $2,000 $1,800 - $2,000 $1,800 - $2,000
Amortization
($ million) $725 - $775 $725 - $775 $725 - $775
Exploration
($ million) $220 - $230 $220 - $230 $220 - $230
Advanced projects,
research and development
($ million) $160 - $190 $160 - $190 $120 - $180
General and administrative
expenses ($ million)$140 - $150 $140 - $150 $140 - $150
Interest expense, net of
capitalized interest
($ million) $60 - $80 $60 - $80$110 - $120
Effective tax rate22% - 26% 28% - 32% 30% - 34%
Forecast Assumptions Jun 2008 Apr 2008 Feb 2008
Oil Price ($/barrel)$125 $90 $80
Australian Dollar
Exchange Rate 0.95 0.925 0.875
To view complete financial disclosure, including regional mine statistics,
Results of Consolidated Operations, Liquidity and Capital Resources,
Management's Discussion & Analysis, the Form 10-Q, and a complete outline of
the 2008 Operating and Financial guidance by region please see
http://www.newmont.com.
The Company's second quarter earnings conference call and web cast
presentation will be held on July 24, 2008 beginning at 10:00 a.m. Eastern
Time (8:00 a.m. Mountain Time). To participate:
Dial-In Number: 210-839-8502
Leader: John Seaberg
Password:Newmont
Replay Number: 203-369-0902
The conference call will also be simultaneously carried on our web site at
http://www.newmont.com under Investor Relations/ Presentation and will be
archived there for a limited time.
Cautionary Statement:
This news 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 that are intended to be
covered by the safe harbor created by such sections. Such forward-looking
statements include, without limitation, (i) estimates of future mineral
production and sales; (ii) estimates of future costs applicable to sales,
other expenses and taxes for specific operations and on a consolidated basis;
(iii) estimates of future capital expenditures, construction, production or
closure activities; and (iv) statements regarding potential cost savings,
productivity, operating performance, and cost structure. 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, forward-looking 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 such
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 in the countries in which we
operate, and governmental regulation and judicial outcomes. For a more
detailed discussion of such risks and other factors, see the Company's 2007
Annual Report on Form 10-K, filed on February 21, 2008, 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," 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.
SOURCE Newmont Mining Corporation
