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Nevada - Newmont’s Foundation
Trent Tempel, General Manager, Eastern NevadaAli Soltani, General Manager, Western NevadaJohn McKinstry, General Manager, Midas
June 2002
Nevada Tour – June 2002
June 12, 2002 – Page 2
Nevada Newmont’s Foundation
38 years of innovation
Produced 36 million ounces
31 million ounces of reserves
2,600 employees
Utilization of our asset base
2000 2001 2002E
Production 3.0 2.7 ~2.7
Cash cost/oz $203 $222 $205-210
June 12, 2002 – Page 3
Newmont Mines and Property
~1.8 million acres
Twin Creeks
Deep Star
Gold Quarry
Checkerboard Property
Winnemucca
200Miles
NORTH
Elko
Carlin
80
Lone Tree
Trenton
PhoenixMule Canyon
1996 Newmont Gold Company1997 Santa Fe merger2001 Battle Mountain Gold merger2002 Normandy mergerBarrick/Homestake
NEVADA
Deep Post
Midas
June 12, 2002 – Page 4
Unparalleled mining and processing flexibility
9 open pit & 5 underground mines
15 processing facilities
Pipeline of new projects to sustain production
A Long-Lived Core Asset
June 12, 2002 – Page 5
Current Nevada Ore Flows
LT Flotation
Mill 6 Roaster
RefractoryDeep StarRefractory
Deep PostRefractory
Refractory
RefractoryOxide
Oxide
Oxide
Dump Leach
North Area
Lone Tree
South AreaEast Nevada
West Nevada
LT Autoclave
Mill 5
Dump Leach
Dump Leach
Sage Autoclave Juniper Mill
Refractory Oxide
Twin Creeks
Dump Leach
Midas
Oxide
Midas Mill
June 12, 2002 – Page 6
HighLowLow
ROM Dump Leach ($0.50-$0.65)
Twin CreeksLone Tree ComplexSouth Area Twin CreeksNorth Area
Low
Ore
Gr a
de
( oz /
t)C
ost/to
n
High
High
Refractory %
Gra
de
oz/
tC
ost $/t
Generalized Processing Matrix
Crushed Dump Leach ($1.00-$1.40)South Area North Area
Direct Cyanide Mill ($3.00-$16.00)Mill 5 – South AreaJuniper – Twin CreeksSage – Twin CreeksMidas – Western Nevada
Dump Oxidation - Low-Ratio Leach ($1.50-$2.25)Twin CreeksLone TreeSouth AreaNorth Area
Bio-Milling ($7.00-$9.00)Mill 5 - South Area
Flotation to Autoclave or Roaster ($7.50-$8.00) Lone Tree
Refractory Milling ($16.00-$20.00) Sage Autoclave – Twin CreeksLone Tree AutoclaveMill 6 Roaster – South Area
June 12, 2002 – Page 7
Gold Production
Cash Cost $232 $205 $209 $211 $203 $222 ~$205-210
Total Cost $302 $268 $273 $263 $260 $269 ~$260-270
0.00
1.00
2.00
3.00
4.00
1996 1997 1998 1999 2000 2001 2002E
Leach Oxide Mill Ref. Mill
2.33
2.78 2.772.50
3.04
30%
35% 42%54%
67%
2.70
65%
~2.7
68%
(million ounces)
June 12, 2002 – Page 8
Gold Production
Cash Cost $232 $205 $209 $211 $203 $222 ~$205-210
Total Cost $302 $268 $273 $263 $260 $269 ~$260-270
0.00
1.00
2.00
3.00
4.00
1996 1997 1998 1999 2000 2001 2002E
Surface Underground
2.33
2.78 2.772.50
3.04
2.70 ~2.7
(million ounces)
June 12, 2002 – Page 9
Nevada Manpower
2,000
2,500
3,000
3,500
4,000
1997 1998 1999 2000 2001 2002E
Em
plo
yees
0
200
400
600
800
1,000
1,200
1,400
Ou
nces p
er Em
plo
yee
Employees Ounces per Employee
June 12, 2002 – Page 10
Significant Initiatives
Electrical Power $65 million per year operating cost for Nevada (2nd to labor)
Tiger Teams integral to reducing consumption (~10%)
Workforce Optimization Comprehensive review of organizational structure
Natural extension of 5-year attrition mode
– Total employment down from 3,500 to 2,600 since 1997
Midas Integration Accelerated integration
Synergies of $8 million per annum
Other 80 – 100 teams focused on wide spectrum of change initiatives
Key focus: safety, environmental, productivity, cost and cash flow
June 12, 2002 – Page 11
Capital Expenditures
451
231
9652
8658
104
96 97 98 99 00 01 02E
PPE UG DMD CAP Mining($ million)
June 12, 2002 – Page 12
Production Pipeline
First Production
Deep Post Underground 2001
Gold Quarry Chukar Underground 2002E
Gold Quarry South Layback 2004E
Leeville Underground 2005E
Twin Creeks South Layback 2005E
Phoenix Sulfide 2008E
Emigrant Pit ?????
Gold Margin Underground ?????
Rain Saddle Underground ?????
Capital rationing and flexible scheduling to sustain Nevada production.
June 12, 2002 – Page 13
Deep Post Underground Mine
Life-of-mine: 3.1 million ounces @ 0.76 opt
Commenced production: 2Q 2001 – ahead of schedule
Annualized mining rate: 1,500 tpd
Average annual production: 416,000 ounce (2003-2006)
Total cash costs: $159/ounce
Recent developments: Increased production due to higher grade Better ground conditions Exploration upside
June 12, 2002 – Page 14
Chukar Underground
Chukar Underground Currently in development
~ $6 million capital cost
Au Reserves (300/ounce) 278,000 tons at 0.49 ounces/ton containing 138,000 ounces
NRM: 115,000 tons at 0.46 opt
Production 2 - 4 years at approximately 80,000 ounce
~ $180 - $184/ounce cash cost
High grade feed for Carlin roaster
June 12, 2002 – Page 15
Gold Quarry South Layback
Au Reserves ($300/ounce) 60.1 million tons 0.063 opt containing 3.8 million ounces
Production 6 years totaling 2.6 million ounces
~$230/ounce cash cost
First full year of production begins 2004
Open pit mining
Capital Cost $26 million
Recent Developments Concurrent reclamation
Improved mine design with phased approach
June 12, 2002 – Page 16
Leeville Underground
Au Reserves ($300/ounce) 6.5 million tons at 0.46 opt containing 3.0 million ounces
NRM: 1.6 million tons at 0.53 opt
Production 7+ years at approximately 500,000 ounces per annum
~$195/ounce cash cost
Production would begin in 2005
High grade feed for the Carlin roaster
Capital Cost $170 million
Recent Developments Change in mining method
Change in mining sequence
June 12, 2002 – Page 17
Twin Creeks South Layback
Au Reserves ($300/ounce) 29.3 million tons at 0.066 opt containing 1.9 million ounces Non-reserve material: 5.9 million tons at 0.051 opt
Production 7 years totaling 1.6 million ounces ~$210/ounce cash cost Production begins 2005 Open pit mining Feed Juniper Oxide Mill for 6 years
Capital Cost $15 million - $20 million
Recent Developments Ability to backfill Positive model reconciliation
June 12, 2002 – Page 18
Phoenix Sulfide
Au Reserves ($300/ounce) 174 million tons at 0.034 opt containing 6.0 million ounces NRM: 142 million tons at 0.024 opt
Copper Reserves 461 million pounds
Production 13 years at average of 390,000 ounces Au, 27.5 million pounds Cu ~$150/ounce cash cost (after by-product credits) Production begins 2008 Feed for Lone Tree autoclave
Capital Cost $200 million - $225 million Including $35 million for SX-EW / upgrading Lone Tree
June 12, 2002 – Page 19
% Total NevadaReserves 15.1 million ounces 48%
Mining 52 million tons/year 35%
2002E mine production – ~ 1.2 million ounces 36%
2002E process production – ~1 million ounces 36%
Eastern Nevada
Cornerstone of our Nevada Foundation
Carlin Roaster
June 12, 2002 – Page 20
Carlin Highlights
Roaster Lower temperatures result in higher recovery
Improved availability
Bio-Mill Improved heap permeability
Improved CIL efficiency
Deep Post Exploration upside
Stockpile Management Drilling and kreiging stockpiles
Maximizing cash flow
Concurrent Reclamation
June 12, 2002 – Page 21
Improving Roaster Productivity
Throughput (000 tons) Availability %
Ounces Produced (000)
98 99 00 01 02E
Grade opt 0.23 0.25 0.30 0.24 0.24
Recovery 90% 90% 88% 90% 91%
Grade and Recovery630
470
590680
591
1998 1999 2000 2001 2002E
89.0072.00
85.00 85.60 88.70
1998 1999 2000 2001 2002E
2,900
2,3252,800 2,673 2,774
1998 1999 2000 2001 2002E
June 12, 2002 – Page 22
Western Nevada
Featuring Million-Ounce
Producer Twin Creeks
% Total NV Reserves 16.2 million ounces 52%
Mining 100 million tons/yr 65%
2002E mine production - ~2.1 million ounces 64%
2002E process production - ~1.7 million ounces 64%
Twin Creeks
June 12, 2002 – Page 23
Manpower flexibility
Equipment utilization
Toll milling
Oxide mine plan at Phoenix
Synergies
Carbon handling (Carlin, Mesquite)
Refining (Carlin, Mesquite, Midas)
Western Nevada Opportunities
June 12, 2002 – Page 24
Newmont’s largest Nevada mine % Total NV
Reserves 6.0 million ounces 19%
Mining 50 million tons/yr 33%
2002E mine production - 1.30 million ounces 39%
2002E process production - 1.03 million ounces* 36%
Processing 2 autoclaves 2 oxide mills 3 oxide leach pads
*Includes other ore sources
Twin Creeks Profile
June 12, 2002 – Page 25
Autoclaves - 3,454 k tons @ 0.243 opt - 89% Recovery = ~ 747,000 ounces*
Twin Creeks Autoclaves Production Summary 2002
Twin Creeks Sulfide
86%
Lone Tree Flotation
2%Twin Creeks Oxide
9%
Deep Star/Deep
Post3%
*Excludes Getchell toll milling
June 12, 2002 – Page 26
%Total NV
Reserves 2.1 million ounce 7%
Mining 50 million tons/year 32%
2002E mine production - 582,000 ounces 18%
2002E process production - 573,000 ounces 21%
Lone Tree Complex Profile
June 12, 2002 – Page 27
Deep Post48%
Lone Tree Sulfide
13%
LT Flotation
31%
Mule Canyon
3%
Lone Tree Oxide
5%
875 k tons @ 0.566 opt - 94.6% recovery = ~ 469,000 ounces
Lone Tree AutoclaveProduction Summary 2002
June 12, 2002 – Page 28
Midas Profile
Au Reserves ($300/ounces) 2.1 million ounces
Production (10.5 months of 2002) ~ 200,000 ounces
~ 970 tpd
~ 1.7 million ounces Ag by-product
Cash Cost ~$100/ounce
Free Milling
June 12, 2002 – Page 29
Midas Mining
High grade (0.67oz/t)
Quartz vein
Low sulfides
Narrow, steep dipping
Selective mining
Decline access
June 12, 2002 – Page 30
Midas Milling
Specialty mill
High recoveries
Merrill Crowe
Environmentally sound
Optimization study initiated
June 12, 2002 – Page 31
Midas Synergies Production Staff Hourly Procurement Ore Haulage Bussing Assays Other
Annual Savings ~$8 million
Midas Opportunities
June 12, 2002 – Page 32
Midas HighlightsAdditional Opportunities
Utilizing spare capacity at Twin Creeks for
treating low grade ore
Increased production and efficiency
Exploration upside potential
June 12, 2002 – Page 33
Western Nevada Opportunities
Equipment utilization
Lone Tree pit backfill Reduced LOM mining cost 20%
Twin Creeks pit backfill Reduced LOM mining cost 15%
Truck Transfer
June 12, 2002 – Page 34
Western Nevada Opportunities
Sloping of leach pads Phoenix Project
Focus on capital reduction Utilize idle Newmont milling assets Review cost of crushing vs SAG milling Use of Echo Bay-McCoy Cove assets High pressure grinding rolls
Twin Creeks North Leach Pad Sloping
June 12, 2002 – Page 35
Western Nevada Opportunities
Getchell Ores Tolling agreement 125,850 tons 0.417 opt 49,234 recovered ounces to
Placer Dome
Headframe at Getchell Property
June 12, 2002 – Page 36
Nevada OperationsOn-going Optimization
Optimize people: retention and development
Optimize equipment
Ore transport/processing synergies
Optimize procurement practices
Focus on technical staff and technology
June 12, 2002 – Page 37
Cautionary Statement
PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT
This presentation contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such section. Such forward-looking statements include, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii) estimates of future cash costs and total production costs; (iv) estimates regarding future synergy savings from acquisitions; (v) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (vi) statements regarding future debt repayments and the restructuring or refinancing of credit facilities and other indebtedness; (vii) estimates of future capital expenditures; (viii) statements regarding future exploration results and the replacement of reserves; (ix) statements regarding future asset sales or rationalization efforts; and (x) statements regarding modifications to the company's hedge position. 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 forward-looking 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 such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see Page 8 of the company's 2001 Annual Report on Form 10-K, which is on file with the Securities and Exchange Commission, as well as the company's other SEC filings. The company disclaims any intention to update any forward looking statement.