Newmont Has Positive 2008 Operating Results

DENVER, CO - Newmont Mining Corporation reported 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 33.33% interest from AngloGold Ashanti Ltd.
Consolidated capital expenditures for 2008 were approximately $1.9 billion, consistent with the Company's 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."
Newmont 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 remaining 33.33% interest in the Boddington project had occurred at the end of 2008.
In 2008 the Company 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 Company's reserve calculations increased to $725 per ounce in 2008, from $575 per ounce in 2007.
For 2008, the majority of the reserve additions from exploration of roughly 4.4 million equity ounces came from the Boddington project, and Nevada and Mexico. Gold reserves were revised downward at Phoenix in Nevada by 0.8 million ounces due to geological, modeling and metallurgical issues identified through the reconciliation process.
The Company's reserve sensitivities to a $50 change in gold price between $725 and $775 per ounce, assuming costs remain constant, is approximately 3.0 to 4.0 million equity ounces. The Company's ability to project reserve sensitivities at significantly higher gold prices is constrained by limited drill data.
Newmont expects higher equity gold sales of between 5.2 and 5.5 million ounces at lower costs applicable to sales of between $400 and $440 per ounce in 2009. Higher gold sales are expected due to the start-up of Boddington, the anticipated 100% ownership of the Boddington project following the expected completion of the acquisition, as well as increased gold sales at Yanacocha and Batu Hijau.
The company?s address is 6363 South Fiddler's Green Circle,?Greenwood Village, CO 80111, 303.863.7414, www.newmont.com.