Newmont Announces Positive Operating Results

January 27th, 2009

Denver, Colorado — Newmont Mining Corporation (NEM: $50.265) announced 2008 equity gold sales of approximately 5.2 million ounces at costs applicable to sales of $440 per ounce. With the start-up of the Boddington project in Australia in mid 2009, the Company expects continued operating performance improvements in 2009, with an equity gold sales outlook of between 5.2 and 5.5 million ounces at costs applicable to sales of between $400 and $440 per ounce.

The 2009 expectations assume ownership of 100% of the Boddington project, reflecting the expected completion of the acquisition of the remaining interest from AngloGold Ashanti Ltd., announced earlier today

Consolidated capital expenditures for 2008 were approximately $1.9 billion, consistent with original expectations for the year. With completion of the power plant in Nevada and the gold mill in Peru in 2008, and completion of the Boddington project expected in mid-2009, consolidated capital expenditures are expected to decline to between $1.4 and $1.6 billion ($1.3 to $1.5 billion on an equity basis).

Richard O’Brien, President and Chief Executive Officer, said, “We are pleased with the results of our initiatives to improve operating results, resulting in gold sales and costs applicable to sales performance consistent with our original expectations for the year. We achieved our goal of delivering on our plans for this year.”

“For 2009, we expect equity gold sales to increase to between 5.2 and 5.5 million ounces at costs applicable to sales of between $400 and $440 per ounce, assuming the completion of the Boddington acquisition,” noted O’Brien.

The recent financial market volatility pulled the value of certain investments down during the fourth quarter of 2008, resulting in a pre-tax charge of approximately $159 million for non-cash write-downs of marketable securities and property, plant and mine development. As of December, the Company’s Canadian Oil Sands Trust investment was valued at $534 million.

The Company reported year-end 2008 proven and probable gold reserves of 85.0 million equity ounces, compared with 86.5 million equity ounces at the end of 2007. Year-end 2008 reserves would have been 91.6 million equity ounces, an increase of approximately 6% over year-end 2007, if the expected acquisition of the Boddington project had occurred at the end of 2008.

Newmont added 6.3 million equity ounces of gold reserves due to margin changes and additional drilling, offset by revisions of 1.1 million equity ounces. The assumed gold price for the C$575 per ounce in 2007.

Related posts:

• Court Rules in Favor of Barrick Gold
• Newmont Acquiring Boddington Project in Western Australia
• New Gold
• Aurizon Mines
• Randgold Resources

Entry Filed under: Business News | Tags: NEM, newmont