News Release

Newmont Provides Preliminary 2012 Operating Highlights and 2013 Outlook

01/22/2013

DENVER, Jan. 22, 2013 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") announced preliminary attributable gold and copper production and costs applicable to sales within the Company's 2012 outlook. 

2012 and Fourth Quarter Preliminary Operating Highlights:

  • Attributable gold and copper production of 5.0 million ounces and 143 million pounds, and 1.3 million ounces and 35 million pounds for 2012 and the fourth quarter, respectively;
  • Attributable gold and copper sales of 4.9 million ounces and 145 million pounds, and 1.2 million ounces and 42 million pounds for 2012 and the fourth quarter, respectively;
  • Average realized gold and copper price of approximately $1,661 per ounce and $3.43 per pound, and $1,700 per ounce and $3.22 per pound for 2012 and the fourth quarter, respectively;
  • Consolidated costs applicable to sales ("CAS") for gold and copper of between $670 and $680 per ounce and $2.30 and $2.40 per pound, and of $700 and $715 per ounce and $2.60 and $2.70 per pound, for 2012 and the fourth quarter, respectively;
  • First quarter gold price-linked dividend payable of $0.425 per share, subject to Board approval, a 21% increase over the prior year quarter;
  • Approximately $100 million in Other Expense for the fourth quarter, including $15 million in Hope Bay care and maintenance expense and;
  • G&A, Interest and Exploration expense were also within guidance, while Advanced Projects spending was approximately $100 million lower than original guidance.

"In 2013, we will focus on mining fundamentals – from technical competency to safety and social responsibility – to lay the groundwork for profitable growth and more robust cash flow generation," said Gary Goldberg, President and COO.  Mr. Goldberg will become President and Chief Executive Officer for Newmont Mining Corporation, and join its Board of Directors on March 1, 2013.

"Our priority is to advance projects that deliver profitable production gains, including completing construction at Akyem and beginning production in late 2013, and advancing our stripping campaign at Batu Hijau to prepare for Phase 6 mining. We also intend to maintain our dividend policy as we complete our investment priorities in 2013," added Mr. Goldberg.

2012 Preliminary Operating Results


Q4 2011
Attributable
Production

Q3 2012
Attributable
Production

Q4 2012
Attributable
Production

2011 FY
Attributable
Production

2012 FY
Attributable
Production

% Change
Q4 2012 vs

% Change
Q4 2012 vs

% Change
FY 2012 vs

Region

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

Q4 2011

Q3 2012

FY 2011










Nevada a

523

457

478

1,741

1,748

-9%

5%

0%

La Herradura 

56

51

48

212

212

-14%

-6%

0%

  North America

579

508

526

1,953

1,960

-9%

4%

0%

Yanacocha

172

182

122

664

692

-29%

-33%

4%

La Zanja

15

14

13

64

53

-13%

-7%

-17%

  South America

187

196

135

728

745

-28%

-31%

2%

Boddington

205

166

216

741

724

5%

30%

-2%

Other Australia/NZ  

229

229

245

1,043

955

7%

7%

-8%

Batu Hijau 

16

7

7

154

33

-56%

0%

-79%

  Asia Pacific

450

402

468

1,938

1,712

4%

16%

-12%

Ahafo

88

131

123

566

561

40%

-6%

-1%

  Africa

88

131

123

566

561

40%

-6%

-1%

Total Gold

1,304

1,237

1,252

5,185

4,978

-4%

1%

-4%

Boddington 

22

16

19

69

67

-14%

19%

-3%

Batu Hijau 

25

19

16

137

76

-36%

-16%

-45%

Total Copper

47

35

35

206

143

-26%

0%

-31%











Q4 2011
Attributable Sales b

Q3 2012
Attributable Sales b 

Q4 2012
Attributable Sales b

2011 FY
Attributable Sales b

2012 FY
Attributable Sales b

% Change
Q4 2012 vs

% Change
Q4 2012 vs

% Change
FY 2012 vs

Region

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

(Kozs, Mlbs)

Q4 2011

Q3 2012

FY 2011










Nevada a

532

442

484

1,724

1,720

-9%

10%

0%

La Herradura 

56

51

48

210

212

-14%

-6%

1%

  North America

588

493

532

1,934

1,932

-10%

8%

0%

Yanacocha

175

182

123

652

681

-30%

-32%

4%

La Zanja

45

14

13

64

53

-71%

-7%

-17%

  South America

220

196

136

716

734

-38%

-31%

3%

Boddington

187

167

204

688

711

9%

22%

3%

Other Australia/NZ  

228

223

246

1,025

936

8%

10%

-9%

Batu Hijau 

27

7

9

167

32

-67%

29%

-81%

  Asia Pacific

442

397

459

1,880

1,679

4%

16%

-11%

Ahafo

95

123

105

559

527

11%

-15%

-6%

  Africa

95

123

105

559

527

11%

-15%

-6%

Total Gold

1,345

1,209

1,232

5,089

4,872

-8%

2%

-4%

Boddington 

19

17

19

58

66

0%

12%

14%

Batu Hijau 

30

21

23

145

79

-23%

10%

-46%

Total Copper

49

38

42

203

145

-14%

11%

-29%

  

a Production and sales volumes do not include copper production from the Phoenix mine, which was approximately 26 million pounds in 2011 and 30 million pounds in 2012.  Phoenix copper production is accounted for as a by-product and its revenues, net of treatment and refining charges, are credited to Nevada costs applicable to sales as a by-product credit.


b Included in attributable sales are Newmont's non-consolidated equity interests in La Zanja and Duketon.  

 

2013 Outlook

The Company also announced its outlook for 2013 production, costs and capital expenditures. 

Attributable 2013 gold and copper production are expected to be approximately 4.8 to 5.1 million ounces and 150 to 170 million pounds, respectively, at costs applicable to sales of approximately $675 to $750 per ounce and $2.25 to $2.50 per pound, respectively.  The Company also announced that it anticipates 2013 all-in sustaining costs to be between $1,100 and $1,200 per gold ounce of production (as defined on page 3).

The Company currently expects to invest approximately $2.1 to $2.3 billion in attributable capital expenditures in 2013, of which approximately 40% is allocated to development capital, including at the Akyem project (~$250 million), Ahafo Mill Expansion (~$150 million) the Conga project (~$150 million), and other expansion projects in Nevada (~$260 million) and at La Herradura (~$40 million), with the remaining 60% expected to be spent on sustaining capital.

Newmont's investment priorities include completing construction of Akyem in 2013, finishing the Phase 6 stripping campaign at Batu Hijau during 2013 and 2014, and identifying the best paths forward for Conga in Peru and Tanami in Australia. The Company expects capital expenditures to decrease from 2012 to 2013 by approximately 20%, as declining capital commitments for Conga, Akyem, and Tanami are partially offset by increasing development capital for the Ahafo Mill Expansion in Ghana as well as the Phoenix Copper Leach and Turf/Leeville Vent Shaft development in Nevada.  Additional capital investment is also possible at the Merian project in Suriname in 2013 pending the outcome of further dialogue with the government and additional project evaluation. 

 

2013 Attributable Production, Consolidated CAS and Capital Outlook



Attributable Production

Consolidated CAS

Consolidated Capital

Attributable Capital

Region

(Kozs, Mlbs)

($/oz, $/lb) b

Expenditures ($M) c

Expenditures ($M)

Nevada a

1,700 - 1,800

$600 - $650

$600 - $650

$600 - $650

La Herradura 

225 - 275

$650 - $700

$125 - $175

$125 - $175

  North America

1,950 - 2,050

$600 - $650

$750 - $800

$750 - $800

Yanacocha

475 - 525

$600 - $650

$225 - $275

$100 - $150

La Zanja

40 - 50

-

-

-

Conga

-

-

$250 - $300

$125 - $175

  South America

550 - 600

$600 - $650

$550 - $600

$250 - $300

Boddington

700 - 750

$850 - $950

$125 - $175

$125 - $175

Other Australia/NZ  

925 - 975

$950 - $1,050

$225 - $275

$225 - $275

Batu Hijau, Indonesia d

20 - 30

$900 - $1,000

$75 - $125

$25 - $75

  Asia Pacific

1,650 - 1,750

$900 - $1,000

$500 - $550

$425 - $475

Ahafo

525 - 575

$550 - $600

$375 - $425

$375 - $425

Akyem

50-100

$450 - $500

$225 - $275

$225 - $275

  Africa

625 - 675

$525 - $575

$650 - $700

$650 - $700

Corporate/Other

-

-

$20 - $30

$20 - $30

Total Gold

4,800 - 5,100

$675 - $750

$2,400 - $2,600

$2,100 - $2,300

Boddington 

70 - 80

$2.45 - $2.65

-

-

Batu Hijau

75 - 90

$2.20 - $2.40

-

-

Total Copper

150 - 170

$2.25 - $2.50



 

aNevada CAS includes by-product credits from an estimated 30-40 million pounds of copper production at Phoenix, net of treatment and refining charges.


b 2013 Attributable CAS Outlook is $700 - $750 per ounce.


cExcludes capitalized interest of approximately $157 million.


d Assumes Batu Hijau economic interest of 44.56% for 2013, subject to final divestiture obligations.

 

 

2013 Expense Outlook

Description

Consolidated
Expenses ($M)

Attributable
Expenses ($M)

General & Administrative

$200 - $250

$200 - $250

DD&A

$1,050 - $1,100

$850 - $900

Exploration Expense

$250 - $300

$225 - $275

Advanced Projects & R&D

$350 - $400

$300 - $350

Other Expense

$200 - $250

$150 - $200

Sustaining Capital

$1,400 - $1,500

$1,200 - $1,300

Interest Expense

$200 - $250

$175 - $225

Tax Rate

30% - 32%

30% - 32%

All-in sustaining cost ($/ounce)a,b,c

$1,100 - $1,200

$1,100 - $1,200

Key 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

a All-in sustaining cost is a non-GAAP metric defined by the Company as the sum of costs applicable to sales, copper by-product credits, G&A, exploration expense, advanced projects and R&D, other expense, and sustaining capital.  


bAll-in sustaining cost per ounce is calculated by dividing all-in sustaining cost by the midpoint of estimated sales, less non-consolidated interests in La Zanja and Duketon and development ounces.


cThe Company's methodology for calculating all-in sustaining costs was developed independently, and is subject to change due to a number of factors including the possible adoption of formal industry guidelines from the World Gold Council.

Conference Call Details

Newmont Mining Corporation will report Fourth Quarter and Year-End 2012 results after the market closes on Thursday, February 21st, 2013. A conference call will be held on Friday, February 22nd 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

866-380-6745


Intl Replay Number

203-369-0348


Replay Passcode

2013



Webcast Details



URL

http://services.choruscall.com/links/newmont130222.html

The Fourth Quarter and Year-End 2012 results and related financial and statistical information will be available after the market close on Thursday, February 21, 2013 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 2012 Preliminary Operating Highlights

We caution you that, whether or not expressly stated, all measures of the Company's fourth quarter and 2012 financial results and condition contained in this news release, including production, sales, average realized price, costs applicable to sales and capital expenditures, are preliminary and reflect our expected 2012 results as of the date of this news release. Actual reported fourth quarter and 2012 results are subject to management's final review as well as audit by the Company's independent registered accounting firm and may vary significantly from those expectations because of a number of factors, including, without limitation, additional or revised information and changes in accounting standards or policies or in how those standards are applied. For a discussion of factors that may adversely affect our financial results and condition, see the Company's 2011 Annual Report on Form 10-K, filed on February 24, 2012, with the Securities and Exchange Commission ("SEC"), as well as the Company's other SEC filings, available on the SEC's website at www.sec.gov. The Company will provide additional discussion and analysis and other important information about its fourth quarter and 2012 financial results and condition when it reports actual results on February 21, 2013.

Cautionary Statement Regarding Forward Looking Statements, Including 2013 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; (iii) estimates of future consolidated and attributable capital expenditures, CAS, and all-in sustaining cash cost; and (iv) expectations regarding the development, growth and exploration potential of the Company's 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 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 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

Media, Omar Jabara, 1-303-837-5114, omar.jabara@newmont.com or Diane Reberger, 1-303-967-9455, diane.reberger@newmont.com, or Investors, John Seaberg, 1-303-837-5743, john.seaberg@newmont.com or Karli Anderson, 1-303-837-6049, karli.anderson@newmont.com

© Newmont Mining Corporation. All Rights Reserved. Content on this page may be subject to Terms of Use and Cautionary Statements.