Newmont Mining Corporation Third Quarter Operations And Full Year Outlook on Target

Newmont Mining Corporation (NYSE: NEM) earned $2.3 million, or 2 cents per share, before non-cash, hedge-related accounting charges, in the quarter ended September 30, 1999. The realized gold price for the period was $271 per ounce. This compares with earnings of $6.1 million, or 4 cents per share, at a realized gold price of $295 per ounce in the corresponding 1998 quarter. Equity gold production rose four percent to 1,043,000 ounces, while total cash costs were reduced six percent to $174 per ounce and total production costs declined 10 percent to $228 per ounce. "Our ability to systematically reduce costs and generate strong operating cash flow during a time when the gold price hit a 20-year low demonstrates Newmont's continued success in improving productivity and optimizing operations," said Ronald C. Cambre, Chairman and Chief Executive Officer. "At the same time, we are maintaining full upside potential for our shareholders to participate in what we expect to be an improving gold market." Third quarter 1999 results included a gain of 3 cents per share from the sale of securities received in exchange for the Company's interest in Argentina Gold Corporation and a charge of 1 cent per share for start-up expenses at Batu Hijau. The 1998 quarter also included a 1 cent per share in Batu Hijau start-up costs. During the third quarter, Newmont initiated a gold price protection program involving the purchase of put options financed by the sale of a limited number of long-dated call options. This limited hedge position contains no lease rate or margin call risk. As a proponent of full disclosure and uniform reporting practices, the Company sought and obtained clarification from its independent public accountants and the U.S. Securities and Exchange Commission regarding the appropriate accounting treatment for these transactions. As a result, after tax, non- cash charges of $41.3 million, or 25 cents per share, were recorded in the third quarter (5 cents relating to amortization of the put premium and 20 cents to mark-to-market the call position). Following this treatment, the company's net loss for the quarter was $39 million, or 23 cents per share. Net sales of $328 million during the 1999 third quarter compared with $349.9 million a year earlier. North American operations produced 649,400 ounces in the 1999 third quarter at a total cash cost of $215 per ounce. This compares with 720,400 ounces at a total cash cost of $214 per ounce in the prior year period. International operations posted a 39 percent increase in production to 393,600 equity ounces of gold and a six-percent reduction in total cash costs to $108 per ounce. Notable accomplishments during the 1999 quarter versus the 1998 period included: -- Production at Minahasa in Indonesia nearly doubled to 98,300

ounces as total cash costs fell 37 percent to $99 per ounce. -- Zarafshan-Newmont in Uzbekistan produced 155,600 ounces

(77,800 equity ounces), an 86-percent increase while total

cash costs dropped26 percent to $153 per ounce. -- Minera Yanacocha in Peru produced 423,700 ounces (217,500

equity ounces), 13 percent greater than last year, at total

cash costs of $96 per ounce. For the nine months ended September 30, Newmont had earnings before non cash charges of $19.3 million, or 12 cents per share, including $13.6 million, or 8 cents per share, from the sale of assets (the Argentina Gold interest and the True North property in Alaska) offset in part by start-up costs of $9.3 million, or 6 cents per share, at Batu Hijau. After accounting for the puts and calls, the company's net loss for the nine months was $22 million, or 13 cents per share. Before non-cash charges in the 1998 nine months, Newmont earned $61 million, or 39 cents per share, after including $4.9 million, or 3 cents per share for the start-up at Batu Hijau. Net income in the year ago period of $28.1 million, or 18 cents per share, included a $32.9 million, or 21 cents per share, charge for a change in accounting for previous start-up costs. Operating cash flow for the 1999 nine months of $205.2 million, or $1.23 per share, compared with $276.8 million, or $1.77 per share, a year ago. Net sales of $970.9 million were 12 percent below the $1.10 billion recorded in the 1998 period as the Company's realized gold price fell $33, or 11 percent, to $281 per ounce. Equity gold production of 2,951,600 ounces was slightly lower than the prior year's 3,074,800 ounces. Total cash costs per ounce were reduced three percent to $179 per ounce and total production costs declined six percent to $234 per ounce. North American operations produced 1,938,800 ounces of gold for the nine months, down 14 percent from a year earlier as higher cost production was curtailed in Nevada. Total cash costs of $210 per ounce rose only slightly from a year earlier as cost reduction efforts helped offset increased processing of refractory ore and the lower production levels. Nevada production, ore grades and costs are expected to improve in the fourth quarter and in 2000 as the Company accesses more ounces from the high-grade Deep Post open pit deposit. Overseas operations produced 1,760,300 ounces (1,012,800 equity ounces) during the nine-month period, 25 percent greater than last year. Correspondingly, total cash costs fell $4 to $120 per equity ounce. Investments in the first nine months of $277.6 million (capital expenditures of $159.6 million and $118 million to fund the Company's equity portion of the Batu Hijau project) were almost $60 million less than a year earlier. In July, Newmont executed a prepaid forward gold sales contract and repaid $137 million in revolving credit debt. Consequently, long-term debt decreased to $1.1 billion and long-term debt to total capital on September 30 decreased to 42 percent from 45 percent a year earlier. Cash at the end of the quarter totaled $20.7 million. Looking forward, Mr. Cambre concluded: -- Start-up at Batu Hijau is proceeding ahead of schedule with all material handling and processing facilities operating better than expected. Mining rates of more than 300,000 tonnes per day and design processing rates of 120,000 tonnes per day have been achieved. In a remarkable achievement, the 30-month construction project was completed in mid-October, more than a month ahead of schedule, at a total capital cost of $1.8 billion, or $130 million under budget. The first shipment of copper/gold concentrate is expected before year-end. -- In Nevada, development of the high-grade Deep Post underground mine (0.75opt; 2.35 million ounces) is three months ahead of schedule, with the decline having advanced 3,800 feet. Production is scheduled for mid-year of 2001. Also, the exploration drift connecting this ore body with the one-ounce- per-ton Deep Star mine has advanced 900 feet and is 17 percent complete. -- The Company's patented biomilling process in Nevada is underway with the first low-grade refractory ore being stacked on the reusable leach pad. Following a 100-day bio-oxidation cycle, the ore will be processed through Mill 5. Full-scale production will begin next year. -- Newmont expects to replace its reserves in 1999 following successful exploration efforts, primarily at Minera Yanacocha. A significant increase in reserves at this high-Andes mine has lead the company to lift its production estimate for Yanacocha to 1.75 million ounces (nearly 900,000 equity ounces) for next year. -- Significant benefits are expected from the company's Gold Medal Performance program that is engaging the entire work force in an effort to drive-out inefficiencies, maximize cash flow and enhance shareholder value. -- With the above achievements, Newmont is on target to produce 4.1 million equity ounces of gold in 1999 and 4.5 million ounces in 2000. Total cash costs will approximate $175 an ounce in both years. Importantly, with the company's leverage to the gold price, a $25 improvement in the metal price translates into approximately a 60-cent-per-share increase in operating cash flow. -- The company has substantially completed its Year 2000 readiness program and is confident that its automated processes, process control systems, personal computers and major third-party suppliers are Y2K compliant. Over the balance of the year, the company will implement contingency plans as well as test and certify new vendor systems. (For supplemental information relating to this press release refer to Newmont's web site at, under investor relations. For additional information relating to Newmont's price protection program and hedge accounting treatment refer to a press release dated October 13, 1999, on the same website). This press release contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are intended to be covered by the safe harbor created thereby. Such forward-looking statements include, without limitation, (i) estimates of future earnings, (ii) estimates of future gold production, (iii) estimates of future production costs and (iv) estimates of future cash flow. Where the company expresses 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 forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Such risks include, but are not limited to, gold price volatility, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans. For a more detailed discussion of such risks and other factors, see Page 15 of the company's 1998 Annual Report on Form 10-K. ots Original Text Service: Newmont Mining Corporation Internet: Contact: media, Doug Hock, (USA) 303-837-5812, or investors, Terry Terens, (USA) 303-837- 6141, both of Newmont Mining Corporation Company News On-Call: or fax, 800-758-5804, ext. 615675 Web site:

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