Newmont Benefits from Lower Costs

 

DENVER, CO - Newmont Mining Corporation reported second quarter results, with equity gold sales of 1.2 million ounces at an average realized price of $915 per ounce and costs applicable to sales of $423 per ounce, resulting in adjusted net income of $213 million compared to $221 million for the prior year quarter. The 2009 decrease is primarily due to lower realized copper prices and a significantly higher tax rate, partially offset by higher sales volumes and lower operating costs.

Richard O'Brien, President and Chief Executive Officer said, "I am pleased to report that our costs applicable to sales were 4% lower than last year's quarter, resulting in an operating margin of $492 per ounce for the quarter. I am also pleased to report that we have successfully started to transition Boddington from project construction to start-up. As Boddington ramps up towards commercial production, it will become a significant contributor to our portfolio and create sustainable value for our shareholders, employees and host communities."

With six months of operating results as well as Boddington's July start-up, the Company revised the top end of its 2009 equity gold sales outlook from 5.5 to 5.4 million ounces. With a revised 2009 equity gold sales outlook of 5.2 to 5.4 million ounces, the Company's outlook for 2009 costs applicable to sales remains unchanged at between $400 and $440 per ounce.

Newmont’s Nevada operations sold 415,000 equity ounces of gold at costs applicable to sales of $549 per ounce during the second quarter. Equity gold sales were slightly lower than expected primarily due to lower throughput and grades at Mill 6 following the annual maintenance period during May, as well as lower production at Midas due to the suspension of mining following a ground failure which curtailed production for most of April. During the quarter, costs applicable to sales per ounce were lower than expected due to higher by-product credits and lower milling costs, partially offset by lower than expected gold sales. The Company updated its 2009 equity gold sales outlook from Nevada to between 1.9 and 2.0 million ounces from the previously announced outlook of between 1.8 and 2.0 million ounces. The outlook for 2009 costs applicable to sales remains unchanged at between $535 and $575 per ounce.

The company’s address is 6363 South Fiddler's Green Circle, Greenwood Village, CO 80111, 303.863.7414, fax: 303.837.5837.