Newmont Mining Corporation Announces 2nd Quarter

Results: Positive Earnings, Strong Cash Flow Denver (PROTEXT) - Newmont Mining Corporation (NYSE: NEM)earned $7.1 million, or 4 cents per share, and generatedoperating cash flow of $110.9 million, or 66 cents per share, inthe second quarter of 1999 reflecting the operating strength andflexibility of its portfolio of properties. Net income for the first six months of the year was $17.0million, or 10 cents per share. Six-month cash flow fromoperations of $166.1 million, or 99 cents per share, was in linewith last year's $170.6 million, or $1.09 per share, despite adecline of more than $100 million in revenue to $663.2 million asthe realized gold price fell $35 to $287 an ounce. Equity goldproduction of 1.91 million ounces for the first half of 1999compared with 2.07 million ounces in the 1998 period. Total cashcosts were $182 per equity ounce versus $183 a year earlier,while total production costs, including depreciation, depletionand amortization declined $10 to $238 an ounce, one of the lowestin the industry. "These results reflect our ability to achieve increasedoperating efficiencies and reduce costs. As these efforts, whichwe call our Gold Medal Performance Program, gain momentum, weexpect to see significant on-going improvements in four principalmeasures of shareholder value: production, costs, cash flow anddebt reduction," said Ronald C. Cambre, Newmont's chairman andchief executive officer. Earnings in the 1999 periods included an after-tax gain of$8.4 million from the sale of the True North property in Alaskaand after-tax charges of $4.9 million in the quarter and $8million in the six months for start-up costs at the Batu Hijauproject in Indonesia. In the second quarter of 1998, Newmont earned $24.6 million,or 16 cents per share, after inclusion of start-up costs of $2.2million. In the January-through-June period of 1998, net incomeof $22.0 million, or 14 cents per share, included a charge of$36.2 million to adopt a new accounting principle expensingpreviously capitalized start-up costs at Batu Hijau and otherprojects. Revenue in this year's second quarter of $333 million comparedwith $376 million a year earlier, reflecting a $39 decline in therealized gold price to $281 per ounce. Equity gold production was952,300 ounces versus 1,037,700 ounces in the 1998 quarter. Totalcash cost per equity ounce of production of $183 was essentiallyunchanged from the 1998 period. North American operations produced 634,200 ounces of goldduring the 1999-quarter at a total cash cost of $211 an ounce.This compared with 773,200 ounces produced at a total cash costof $199 an ounce in the second quarter of 1998. Reduced miningrates at higher-cost pits in Nevada, lower grades due to minesequencing and the processing of transition ores (ores with amoderate refractory content) in oxide mills with subsequentlylower recovery rates reduced output and increased unit costs.Partially offsetting was a 14 percent cost reduction at theMesquite heap-leach operation in California. Overseas operations had another excellent quarter with a 20percent increase in gold production to 318,100 equity ounces anda $6 decrease in total cash costs to $127 per equity ounce. -- The Zarafashan-Newmont joint venture in Uzbekistanproduced a record 133,800 ounces of gold (66,900 equity ounces)at a total cash cost of $172 per ounce as the project benefitedfrom higher ore grades placed on the leach pad. A year ago,production of 85,600 ounces (42,800 equity ounces) carried atotal cash cost of $258 an ounce reflecting a one-time costadjustment. -- Minera Yanacocha in Peru increased production 26 percentto 363,700 ounces (186,700 equity ounces) at a total cash cost of$111 per equity ounce, from 287,900 ounces (147,800 equityounces) and a total cash cost of $109 per equity ounce in the1998 quarter, reflecting the continuing growth of thisoutstanding property. -- Minahasa in Indonesia produced 64,500 ounces at a totalcash cost of $124 per ounce, compared with 73,900 ounces at atotal cash cost of $108 in the 1998 period. Harder ore reducedmill throughput in the most recent quarter, while the year-agoquarter benefited from devaluation of the Indonesian currency. For the first six months of 1999, North American operationsproduced 1.29 million ounces compared with 1.54 million ounces inthe 1998 half. Total cash costs of $208 per ounce compared with$202 a year earlier. With initial production from the Deep Postsurface deposit in Nevada, Newmont expects North Americanproduction to increase 10 percent in the second half of the yearcompared with the first half, with total cash costs declining toapproximately $200 an ounce. Overseas production during the first half of 1999 totaled619,200 equity ounces of gold versus 527,200 equity ounces in1998. Total cash costs per equity ounce were unchanged at $128.With increased production from Minera Yanacocha and thecommencement of heap leaching at Minahasa during the second half,total overseas production is expected to increase 20 percent fromthe first half of 1999, with total cash costs falling byapproximately $10 an ounce. Investments of $137.8 million during the first half includedcapital expenditures of $77.3 million, primarily for minedevelopment in Nevada and leach pad expansion in Peru, and $92million to fund the company's equity portion of the Batu Hijauproject, offset in part by $28 million from the sale of the TrueNorth property. This was nearly $100 million less than the $235.5million invested in the first half of 1998, which included theacquisition of an additional 13 percent interest in Yanacocha. The company ended the quarter with $81.9 million in cash andtotal long-term debt, including the current portion, of $1,233.8million. This compares with cash of $79.1 million and long-termdebt of $1,248.7 million on December 31, 1998. Additionally, onJuly 26, the company termed out one third of its revolving creditdebt on favorable terms through the execution of a prepaidforward gold sales contract netting proceeds of $137.2 millionfor the delivery of a specified number of ounces of gold through2007. Comprehensive income for the half of $22.3 million reflects anunrealized gain of $5.3 million on marketable securities. In looking forward, Mr. Cambre concluded: -- Batu Hijau is more than 95 percent complete and onschedule for a fourth quarter start-up. The port, power plant,crusher and conveyor system and two SAG mills are scheduled forcompletion during the third quarter, with the concentratorcommencing operations in the fourth quarter. Mining has reached300,000 tonnes per day, a 50 percent increase during the secondquarter. Demobilization of the construction workforce is goingsmoothly with 8,000 workers currently on site, down from 12,000at the end of last year. Anticipated total cash costs for theproject are estimated at 48 cents per pound of copper after goldcredits. -- Development has begun on Nevada's first combinationbioleaching biomilling operation at Carlin. The $8 millionproject, which will take a year to complete, will extract 645,000ounces of gold from 11.7 million tons of low-grade refractory orestockpiles. The ore will undergo crushing, a 100-day bioleachcycle and then processing in Mill 5. The project requires lesscapital, less leach time and yields greater recoveries than thecompany's originally proposed heap leach bio-oxidation process.Thus it offers excellent economics, and will generate more than$40 million in free cash flow between 2000 and 2003 at a $250gold price. -- The fall in the gold price has been deeper and lastedlonger than expected. The destabilization caused by the U.K. andproposed IMF gold sales is vastly out of proportion with theactual amount of bullion involved. But, coupled with continuedheavy short selling, negative sentiment toward the metal isovershadowing strong demand fundamentals. We are convinced thatcurrent conditions are unsustainable and that shareholders willbe rewarded for their patience. -- Newmont expects to produce approximately 2.2 millionounces of gold in the second half of the year at a total cashcost of under $175 an ounce and total production costs ofapproximately $230 an ounce. This level of performance wouldmatch the record production of 1998 at lower costs and sets thestage for continued improvement. We expect to be profitable inthe second half of the year and generate operating cash flow forthe full year in excess of $2 per share. Achieving these goalswill be a testimony to the strength and flexibility of ouroperations as well as the determination and resourcefulness ofour people. Detailed operating statistics are available on the pressrelease section of www.newmont.com or via facsimile at 1-800-758-5804 (PIN 615675). This press release contains "forward-looking statements"within the meaning of U.S. federal securities laws. The company'sperformance is subject to risks, uncertainties and other factorsthat could cause actual results to differ materially from thesestatements. Such risks include, but are not limited to, goldprice volatility, increased production costs, variances in oregrade or recovery rates from those assumed in mining plans, non-realization of estimated synergies, failure to receive on atimely basis necessary permits or other governmental approvals,changes in U.S. or foreign laws or regulations, and delays in thereceipt of or failure to obtain any necessary financing. For amore detailed discussion of such risks and other factors, seePage 15 of the 1998 Annual Report on Form 10-K for NewmontMining. ots Original Text Service: Newmont Mining CorporationInternet: http://www.newsaktuell.de Contact: Doug Hock, (USA)303-837-5812, or Investor Relations: Terry Terens, (USA) 303-837-6141, both of Newmont Mining Corporation Web site:http://www.newmont.com

Upozorňujeme odběratele, že materiály označené značkouPROTEXT nejsou součástí zpravodajského servisu ČTK a nelze jepublikovat pod její značkou. Jde o komerční sdělení zadavatele,který je ve zprávě označen a který za něj nese plnou odpovědnost.

Subscribers please note that material bearing the slug"PROTEXT" is not part of CTK's news service and is not to bepublished under the "CTK" slug. Protext is a commercial serviceproviding distribution of press releases from clients, who areidentified in the text of Protext reports and who bear fullresponsibility for their contents.

PROTEXT