The Globe and Mail

Go to the Globe and Mail homepage

Jump to main navigationJump to main content

Press release from PR Newswire

Newmont Announces Net Income from Continuing Operations of $1.9 Billion or $3.80 per Share in 2012

Thursday, February 21, 2013

Newmont Announces Net Income from Continuing Operations of $1.9 Billion or $3.80 per Share in 201217:33 EST Thursday, February 21, 2013Annual Revenue of $9.9 Billion and Increased Quarterly Dividend to $0.425 per shareDENVER, Feb. 21, 2013 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") reported net income from continuing operations of $1.9 billion or $3.80 per basic share ($3.78 per share on a fully diluted basis) in 2012, compared with $0.5 billion, or $1.02 per share in 2011. Adjusted net income[1] was $1.9 billion or $3.71 per share in 2012, compared with $2.2 billion, or $4.31 per share a year ago.Financial Highlights2012 Financial Results:Annual revenue of $9.9 billion; Record regular dividends paid to shareholders of $695 million, or $1.40 per share, representing a payout ratio of 38% of adjusted net income; Gold operating margin of $985 per ounce; Operating cash flow of $2.4 billion; Attributable gold and copper production of 5.0 million ounces and 143 million pounds, respectively; Gold and copper consolidated costs applicable to sales ("CAS")[2] of $677 per ounce and $2.34 per pound, respectively; All-in sustaining cost[3] of $1,149 per ounce; and Average realized gold and copper price of $1,662 per ounce and $3.43 per pound, respectively.Q4 2012 Financial Results: Approved Q1 2013 dividend payable of $0.425 per share; Attributable gold and copper production of 1.3 million ounces and 35 million pounds, respectively; Gold and copper CAS of $720 per ounce and $2.61 per pound, respectively; All-in sustaining cost of $1,192 per ounce; and Average realized gold and copper price of $1,700 per ounce and $3.22 per pound, respectively."We were pleased to return the highest dividends in the gold industry on a per share basis in 2012," said Gary Goldberg, President and Chief Operating Officer.  "We will maintain this competitive advantage by focusing on reducing our total cost of production and progressing only the most promising opportunities in our portfolio. These include our Akyem project in Ghana, which will begin production later this year, and advancing the Phase 6 stripping campaign to deliver the next tranche of production from Batu Hijau," added Goldberg.Management UpdateAs previously announced, Gary Goldberg will become President and Chief Executive Officer (CEO) and join Newmont's Board of Directors on 1 March 2013. He succeeds Richard O'Brien who will step down as CEO and retire from the Board at that time. Russell Ball, Executive Vice President and Chief Financial Officer (CFO), has also decided to step down and will leave Newmont later this year. He plans to continue in his current capacity to ensure a smooth transition as the company seeks its new CFO.Other management changes include appointing new leaders and building a team whose skills and experience align with Mr. Goldberg's immediate priorities for Newmont ? to take a more disciplined approach to capital allocation and cost control and to restore industry leading social and environmental practices.These new leaders include:  Dr. Elaine Dorward-King, a noted sustainable development expert with 25 years of experience in the mining sector who joins Newmont on 18 March 2013 as Executive Vice President, Sustainability & External Relations; Scott Lawson, Senior Vice President Technical Services, with 27 years of experience in international operations management and technical innovation for the mining sector; and Susan Keefe, Vice President, Strategic Relations, with 25 years of experience in communications and reputation management for the mining sector.Complementing these new appointments are existing leaders Randy Engel, Executive Vice President, Strategic Development; Bill MacGowan, Executive Vice President, Human Resources and Communications; and Stephen Gottesfeld, Executive Vice President, General Counsel and Corporate Secretary."I am excited about working with Newmont leaders to raise our game and deliver greater value to shareholders. I also want to take this opportunity to express our thanks to Richard and Russell for their many contributions to Newmont over their years of service," said Gary Goldberg, President and Chief Operating Officer.2012 Operating Results and 2013 OutlookIn 2012, the Company reported attributable gold and copper production of 5.0 million ounces and 143 million pounds, respectively, at CAS of $677 per ounce, and $2.34 per pound, respectively, on a co-product basis. Attributable 2012 gold production decreased 4% from 2011 levels due to lower production from Asia Pacific as a result of continued Phase 6 waste mining at Batu Hijau, lower grade and ore availability at Tanami, and mine sequencing at Waihi; and lower production from Africa due to lower mill throughput and grade; partially offset by higher production from South America due to higher mill grade and recovery partially offset by lower leach placement; and higher production from North America due to higher throughput at Mill 6, Juniper Mill, and Twin Creeks Autoclave and the startup of the Emigrant mine. CAS per gold ounce increased 15% in 2012 compared to 2011 due to lower production from Batu Hijau, Tanami, and Waihi, higher royalty and waste mining costs, partially offset by lower co-product allocation of costs to gold.Attributable copper pounds produced decreased 27% due to continued Phase 6 waste mining at Batu Hijau, partially offset by higher throughput at Boddington. CAS per copper pound increased 86% due to lower production from Batu Hijau, higher waste mining at Batu Hijau, higher mill maintenance costs at Boddington, and higher co-product allocation of costs to copper.2013 attributable gold production is expected to be approximately 4.8 million to 5.1 million ounces, with attributable copper production of 150 to 170 million pounds. The outlook reflects a continuation of lower expected production at Batu Hijau as it continues to process lower grade stockpiled ore during Phase 6 stripping and lower production at Yanacocha, partially offset by new production at Akyem expected in late 2013. CAS for gold is expected to be between $675 and $750 per ounce due to lower production at Batu Hijau and Yanacocha combined with higher expected costs for energy, labor and contracted services. All-in sustaining cost (sum of CAS, copper by-product credits, G&A, exploration expense, advanced projects and R&D, other expense, and sustaining capital) is expected to be between $1,100 and $1,200 per ounce. CAS for copper is expected to be between $2.25 and $2.50 per pound due to lower production at Batu Hijau.2012 Regional Operating Results and 2013 OutlookNorth AmericaNevada - Attributable gold production was 478,000 and 1.7 million ounces in the fourth quarter and 2012, respectively. CAS was $580 and $638 per ounce, for the fourth quarter and 2012, respectively. Fourth quarter attributable gold production decreased 8% from the prior year quarter due to lower tons and grades from Leeville. CAS per ounce increased 12% from the prior year quarter due to lower volumes.2012 attributable gold ounces produced increased slightly due to higher throughput at Mill 6, Juniper Mill, and the Twin Creeks Autoclave as well as new production from Emigrant, partially offset by lower grade at Phoenix and lower throughput and grade at Midas. CAS per ounce increased 6% due to higher commodity and contractor costs and higher royalties.La Herradura - Attributable gold production was 48,000 and 212,000 ounces in the fourth quarter and 2012, respectively. CAS was $759 and $621 per ounce in the fourth quarter and 2012, respectively.Fourth quarter attributable gold production decreased 14% from the prior year quarter due to the timing of leach recoveries, a refinery adjustment, and lower grade ore. CAS per ounce increased 25% from the prior year quarter due to higher waste tons mined and lower by-product credits. 2012 attributable gold production remained essentially unchanged due to new production at Noche Buena; offset by lower leach recoveries. CAS per ounce increased 18% due to higher waste tons mined, higher commodity prices and lower by-product credits.2013 attributable gold production in North America is expected to be approximately 2.0 to 2.1 million ounces at CAS of approximately $600 to $650 per ounce. South AmericaYanacocha - Attributable gold production was 121,000 and 691,000 ounces in the fourth quarter and 2012, respectively. CAS was $617 and $505 per ounce in the fourth quarter and 2012, respectively.Fourth quarter attributable gold production decreased 30% from the prior year quarter due to lower mill grade and lower leach placement earlier in the year. Costs applicable to sales per ounce increased 21% from the prior year quarter due to the lower production.2012 attributable gold ounces produced increased 4% due to higher mill grade and recovery, partially offset by lower leach placement at Yanacocha, Carachugo and La Quinua. Leach tons placed decreased 23% from 43 million tons to 33 million tons. CAS per ounce decreased 10% due to higher production and lower mining costs.La Zanja - Attributable gold production was 13,000 and 53,000 ounces in the fourth quarter and 2012, respectively. 2012 attributable gold ounces produced decreased 17% from the prior year due to a full year of production from our non-consolidated interest in La Zanja. 2013 attributable gold production in South America is expected to be approximately 550,000-600,000 ounces attributable to Newmont due to a reduction in the mining rate in 2013 and 2014 to maintain a more stable operations workforce and lower grade. CAS is expected to be approximately $600 to $650 per ounce, primarily due to lower production.Asia PacificBoddington - Attributable gold production was 216,000 and 724,000 ounces in the fourth quarter and 2012, respectively. Attributable copper production was 19 million pounds and 67 million pounds in the fourth quarter and 2012, respectively. CAS was $856 and $877 per ounce and $2.23 and $2.29 per pound in the fourth quarter and 2012, respectively.Fourth quarter attributable gold and copper production increased 7% and decreased 10%, respectively, from the prior year quarter due to higher gold grade and with lower copper recovery. CAS increased 14% per ounce and 21% per pound, respectively, due to a higher strip ratio, higher mill maintenance costs, and the impact of the Australian carbon tax, which took effect in July 2012.2012 attributable gold and copper production decreased 1% and increased 3%, respectively, essentially in line with 2011. CAS increased 29% per ounce and 13% per pound, respectively, due to a higher strip ratio, higher mill maintenance costs, and the impact of the carbon tax in Australia. 2013 attributable gold and copper production at Boddington is expected to be approximately 700,000-750,000 ounces and 70-80 million pounds, respectively, at CAS of approximately $850 to $950 per ounce and $2.45 to $2.65 per pound, respectively on a co-product basis.  2013 production is expected to be in-line with 2012 levels, while higher operating costs are expected to result from higher mining and labor costs, as well as higher costs for contracted services and supplies. Batu Hijau - Attributable gold production was 7,000 and 33,000 ounces in the fourth quarter and 2012, respectively. Attributable copper production was 16 million and 76 million pounds in the fourth quarter and 2012, respectively. CAS was $1,292 and $1,071 per ounce and $2.77 and $2.36 per pound on a co-product basis in the fourth quarter and 2012, respectively.Fourth quarter attributable gold and copper production decreased 56% and 33%, respectively, from the prior year quarter due to lower grade and recovery as a result of processing lower grade stockpiled material. CAS increased 71% per ounce and 85% per pound, respectively, due to lower production, offset by lower royalties.2012 attributable gold and copper production decreased 78% and 42%, respectively, due to lower grade and recovery as a result of processing primarily lower grade stockpiled material. Waste tons mined increased 26% as Phase 6 waste removal continued as planned. The Company expects to process primarily stockpiled ore until Phase 6 ore becomes the primary mill feed in 2014. CAS increased 125% per ounce and 113% per pound, respectively due to lower production, partially offset by lower royalties.2013 attributable gold production for Batu Hijau is expected to be approximately 20,000 to 30,000 ounces, at CAS of between $900 and $1,000 per ounce, while attributable copper production is expected to be approximately 75 to 90 million pounds, at CAS of between $2.20 and $2.40 per pound. As previously disclosed[4], Newmont expects to continue processing stockpiled ore until Phase 6 ore becomes the primary mill feed commencing in 2014.Other Australia/New Zealand - Attributable gold production was 245,000 and 955,000 ounces in the fourth quarter and 2012, respectively. CAS was $961 and $879 per ounce in the fourth quarter and 2012, respectively.Fourth quarter attributable gold production increased 7% from the prior year quarter due to higher throughput at Jundee, higher grade at Waihi and higher throughput and grade at Tanami. CAS per ounce increased 19% from the prior year quarter due to higher mining and mill maintenance costs at KCGM and the impact of the carbon tax in Australia.2012 attributable gold production decreased 8% due to lower throughput at Tanami and Waihi, and lower throughput, grade, and recovery at KCGM. CAS per ounce increased 32% due to lower production and higher mining costs.2013 attributable gold production for Other Australia/New Zealand is expected to be approximately 925,000 to 975,000 ounces, primarily due to slightly higher production at Tanami and Waihi. CAS for Other Australia/New Zealand is expected to increase to approximately $950 to $1,050 per ounce in 2013, primarily driven by higher labor costs. Beginning in 2013, our Asia Pacific region will be split into two regions, Australia/New Zealand, and Indonesia.  The Australia/New Zealand region will include Boddington and Other Australia/New Zealand while the Indonesia region will include Batu Hijau. Gold production for Australia/New Zealand is expected to be approximately 1.6 to 1.7 million ounces attributable to Newmont in 2013 at CAS per ounce of $900 to $1,000.   AfricaAhafo - Attributable gold production was 123,000 and 561,000 ounces during the fourth quarter and 2012, respectively. CAS was $694 and $596 per ounce for the fourth quarter and 2012, respectively.Fourth quarter attributable gold production increased 40% from the prior year quarter due to drawdown on in-process inventory compared to build up of prior year quarter, higher grade and recovery. CAS per ounce increased 33% from the prior year quarter due to lower in-process inventory buildup and higher drawdown of finished goods inventory at higher average cost as well as higher power and labor cost.2012 attributable gold production decreased 1% due to lower throughput and grade, largely offset by higher drawdown of in-circuit inventory. CAS per ounce increased 26% due to higher labor, commodity, and royalty costs.2013 attributable gold production for the Africa operations is expected to increase to approximately 625,000 to 675,000 ounces due to the new production from Akyem in late 2013 at CAS of approximately $525 to $575 per ounce.Capital UpdateConsolidated capital expenditures were $3.2 billion in 2012, up from $3.0 billion in 2011.  Attributable capital expenditures were $2.5 billion in 2012, up from $2.3 billion in 2011.  Approximately $1.0 billion was spent on major projects in 2012, such as Akyem in Ghana, and equipment, engineering of reservoirs, and demobilization of workforce at Conga, with the balance largely attributed to sustaining capital. The Company currently expects to invest approximately $2.1 to $2.3 billion in attributable capital expenditures in 2013.  Approximately 40% of this is allocated to development capital, including at the Akyem project (~$250 million), Ahafo Mill Expansion (~$150 million) the Conga project (~$150 million), and other expansion projects in Nevada (~$260 million) and at La Herradura (~$40 million), with the remaining 60% expected to be spent on sustaining capital.Newmont's investment priorities include completing construction of Akyem in 2013, finishing the Phase 6 stripping campaign at Batu Hijau during 2013 and 2014, and identifying the best paths forward for Conga in Peru and Tanami in Australia. The Company expects consolidated capital expenditures to decrease from 2012 to 2013 by approximately 15-20%, excluding capitalized interest, as declining capital commitments for Conga, Akyem, and Tanami are partially offset by increasing development capital for the Ahafo Mill Expansion in Ghana as well as the Phoenix Copper Leach in Nevada.  Additional capital investment is also possible at the Merian project in Suriname in 2013 pending the outcome of further dialogue with the government and additional project evaluation.Advanced Projects UpdateConsolidated advanced projects, research and development expenditures were $348 million in 2012, down from $373 million in 2011. The Company currently plans to spend approximately $350 to $400 million in advanced projects in 2013 on a consolidated basis, or $300 to $350 on an attributable basis, focused primarily on Long Canyon in Nevada, Elang in Indonesia, and the Subika expansion in Africa. 2013 Outlook[5],[6]Attributable Production(Kozs, Mlbs)Consolidated CAS($/oz, $/lb) bConsolidated CapitalExpenditures ($M) cAttributable CapitalExpenditures ($M) cRegionNevada a1,700 - 1,800$600 - $650$600 - $650$600 - $650La Herradura 225 - 275$650 - $700$125 - $175$125 - $175  North America1,950 - 2,050$600 - $650$750 - $800$750 - $800Yanacocha475 - 525$600 - $650$225 - $275$100 - $150La Zanja40 - 50---Conga--$250 - $300$125 - $175  South America550 - 600$600 - $650$550 - $600$250 - $300Boddington700 - 750$850 - $950$125 - $175$125 - $175Other Australia/NZ  925 - 975$950 - $1,050$225 - $275$225 - $275 Australia/New Zealand1,625 - 1,725$900 - $1,000$375 - $425$375 - $425 Batu Hijau, Indonesiad20 - 30$900 - $1,000$75 - $125$25 - $75Ahafo525 - 575$550 - $600$375 - $425$375 - $425Akyem50 - 100$450 - $500$225 - $275$225 - $275  Africa625 - 675$525 - $575$650 - $700$650 - $700Corporate/Other--$20 - $30$20 - $30Total Gold4,800 - 5,100$675 - $750$2,400 - $2,600$2,100 - $2,300Boddington 70 - 80$2.45 - $2.65--Batu Hijau75 - 90$2.20 - $2.40--Total Copper150 - 170$2.25 - $2.50aNevada CAS includes by-product credits from an estimated 30-40 million pounds of copper production at Phoenix, net of treatment and refining charges.b 2013 Attributable CAS Outlook is $700 - $750 per ounce.cExcludes capitalized interest of approximately $142 million, consolidated and attributable.d Assumes Batu Hijau economic interest of 44.56% for 2013, subject to final divestiture obligations. 2013 Expense OutlookDescriptionConsolidated Expenses ($M)Attributable Expenses ($M)General & Administrative$200 - $250$200 - $250DD&A$1,050 - $1,100$850 - $900Exploration Expense$250 - $300$225 - $275Advanced Projects & R&D$350 - $400$300 - $350Other Expense$200 - $250$150 - $200Sustaining Capital$1,400 - $1,500$1,200 - $1,300Interest Expense$200 - $250$175 - $225Tax Rate30% - 32%30% - 32%All-in sustaining cost ($/ounce)a,b,c$1,100 - $1,200$1,100 - $1,200Key AssumptionsGold Price ($/ounce)$1,500$1,500Copper Price ($/pound)$3.50$3.50Oil Price ($/barrel)$90$90AUD Exchange Rate$1.00$1.00a All-in sustaining cost is a non-GAAP metric defined by the Company as the sum of costs applicable to sales, copper by-product credits, G&A, exploration expense, advanced projects and R&D, other expense, and sustaining capital.  bAll-in sustaining cost per ounce is calculated by dividing all-in sustaining cost by the midpoint of estimated sales, less non-consolidated interests in La Zanja and Duketon and development ounces.cThe Company's methodology for calculating all-in sustaining costs was developed independently, and is subject to change due to a number of factors including the possible adoption of formal industry guidelines from the World Gold Council.STATEMENTS OF CONSOLIDATED INCOMEYears Ended December 31,201220112010(in millions, except per share)Sales  $9,868$10,358$9,540Costs and expenses  Costs applicable to sales(1) 4,2383,8903,484Amortization  1,0321,036945Reclamation and remediation  9612065Exploration   356350218Advanced projects, research and development   348373216General and administrative   212198178Write-down of property, plant and mine development 522,0846Other expense, net  4492652616,7838,3165,373Other income (expense)  Other income, net  27812109Interest expense, net of capitalized interest of $107, $52 and $21, respectively  (249)(244)(279)29(232)(170)Income before income and mining tax and other items  3,1141,8103,997Income and mining tax expense  (869)(713)(856)Equity income (loss) of affiliates  (51)113Income from continuing operations   2,1941,1083,144Loss from discontinued operations  (76)(136)(28)Net income   2,1189723,116Net income attributable to noncontrolling interests  (309)(606)(839)Net income attributable to Newmont stockholders   $1,809$366$2,277Net income (loss) attributable to Newmont stockholders:  Continuing operations   $1,885$502$2,305Discontinued operations   (76)(136)(28)$1,809$366$2,277Income (loss) per common share   Basic:  Continuing operations   $3.80$1.02$4.69Discontinued operations   (0.15)(0.28)(0.06)$3.65$0.74$4.63Diluted:  Continuing operations   $3.78$1.00$4.61Discontinued operations   (0.15)(0.27)(0.06)$3.63$0.73$4.55Cash dividends declared per common share   $1.40$1.00$0.50(1) Excludes Amortization and Reclamation and remediation.  CONSOLIDATED CASH FLOWSThree Months Ended December 31,Twelve Months Ended December 31,2012201120122011Operating activities:Net income$697$(897)$2,118$972Adjustments:Amortization 2812601,0321,036Stock based compensation and other non-cash benefits17177279Reclamation and remediation473896101Revaluation of contingent consideration121121Loss from discontinued operations(28)-76136Write-down of property, plant and mine development582,082522,084Impairment of marketable securities8547180Deferred income taxes (10)(565)15(671)Gain on asset sales, net(95)(13)(107)(81)Other operating adjustments and write-downs(107)(35)4865Net change in operating assets and liabilities(34)32(1,073)(311)Net cash provided from continuing operations  8469252,3883,591Net cash used in discontinued operations  (4)(3)(16)(7)Net cash provided from operations  8429222,3723,584Investing activities:Additions to property, plant and mine development (816)(1,006)(3,210)(2,787)Acquisitions, net(3)(8)(25)(2,309)Sale of marketable securities1721081Purchases of marketable securities(11)(4)(220)(21)Proceeds from sale of other assets283419Other  (12)(31)(60)(40)Net cash used in investing activities(813)(1,039)(3,264)(5,067)Financing activities:Proceeds from debt, net1812133,5242,011Repayment of debt  (20)(187)(1,976)(2,273)Payment of conversion premium on debt--(172)-Proceeds from stock issuance, net  452440Acquisition of noncontrolling interests(10)-(10)-Dividends paid to noncontrolling interests-(100)(3)(117)Dividends paid to common stockholders  (174)(173)(695)(494)Other  (1)(24)(3)(21)Net cash provided from (used in) financing activities(20)(266)689(854)Effect of exchange rate changes on cash  38441Net change in cash and cash equivalents  12(375)(199)(2,296)Cash and cash equivalents at beginning of period  1,5492,1351,7604,056Cash and cash equivalents at end of period  $1,561$1,760$1,561$1,760CONSOLIDATED BALANCE SHEETSAt December 31,At December 31,20122011(in millions)ASSETS Cash and cash equivalents   $1,561$1,760Trade receivables   283300Accounts receivable   577320Investments 8694Inventories 796714Stockpiles and ore on leach pads 786671Deferred income tax assets 195396Other current assets 1,6611,133Current assets   5,9455,388Property, plant and mine development, net 18,01015,881Investments 1,4461,472Stockpiles and ore on leach pads 2,8962,271Deferred income tax assets 481242Other long-term assets 872857Total assets   $29,650$26,111LIABILITIES Debt $10$689Accounts payable   657561Employee-related benefits 339307Income and mining taxes  51250Other current liabilities 2,0842,133Current liabilities   3,1413,940Debt 6,2883,624Reclamation and remediation liabilities 1,4571,169Deferred income tax liabilities 858784Employee-related benefits 586459Other long-term liabilities 372364Total liabilities   12,70210,340EQUITY Common stock - $1.60 par value; 787784Authorized - 750 million shares Issued and outstanding -  Common: 492 million and 490 million shares issued, less 277,000 and 273,000 treasury shares, respectivelyExchangeable: 56 million shares issued, less 51 million and 51 million redeemed shares, respectivelyAdditional paid-in capital   8,3308,408Accumulated other comprehensive income (Note 25)490652Retained earnings   4,1663,052Newmont stockholders' equity   13,77312,896Noncontrolling interests   3,1752,875Total equity  16,94815,771Total liabilities and equity   $29,650$26,111Regional Operating StatisticsProduction Statistics SummaryThree Months Ended December 31,Years Ended December 31,2012201120122011GoldConsolidated ounces produced (thousands):  North AmericaNevada4785221,7481,738La Herradura48562122125265781,9601,950  South AmericaYanacocha2363351,3461,293  Asia PacificBoddington216201724730Batu Hijau143268308Other Australia/New Zealand2302249241,0264604571,7162,064  AfricaAhafo123885615661,3451,4585,5835,873CopperConsolidated pounds produced (millions):  Asia PacificBoddington19216765Batu Hijau33491572735270224338GoldAttributable ounces produced (thousands):  North AmericaNevada4785221,7481,738La Herradura48562122125265781,9601,950  South AmericaYanacocha121172691664Other South America Equity Interests13155364134187744728  Asia PacificBoddington216201724730Batu Hijau71633149Other Australia/New Zealand2302249241,026Other Asia Pacific Equity Interests15531174684461,7121,922  AfricaAhafo123885615661,2511,2994,9775,166CopperAttributable pounds produced (millions):  Asia PacificBoddington19216765Batu Hijau1624761323545143197CAS and Capital Expenditures Three Months Ended December 31,Years Ended December 31,2012201120122011Gold  Costs Applicable to Sales ($/ounce)(1)        North America       Nevada $580$519$638$603      La Herradura 759609621527596527636594        South America       Yanacocha 617511505560        Asia Pacific       Boddington 856749877682      Batu Hijau 1,2927541,071476      Other Australia/New Zealand 961807879664925778886639        Africa       Ahafo 694520596474   Average $720$602$677$591   Attributable to Newmont $726$608$698$597Copper  Costs Applicable to Sales ($/pound)(1)        Asia Pacific       Boddington $2.23$1.84$2.29$2.03      Batu Hijau 2.771.502.361.11   Average $2.61$1.58$2.34$1.26   Attributable to Newmont $2.52$1.64$2.33$1.37 (1)Consolidated Costs applicable to sales excludes Amortization and Reclamation and remediation.Three Months Ended December 31,Years Ended December 31,2012201120122011 Consolidated Capital Expenditures ($ million)   North America  Nevada $157$179$677$559 La Herradura 39268981 Other North America -27-101196232766741   South America  Yanacocha 118116510360 Conga 115291582739 Other South America 10192434071,1111,099   Asia Pacific  Boddington 6495141217 Batu Hijau 5047148196 Other Australia/New Zealand 6382277294 Other Asia Pacific 7101918184234585725   Africa  Ahafo 5245228116 Akyem 83121388248135166616364 Corporate and Other 7127435 Total - Accrual Basis $765$1,051$3,152$2,964 Change in Capital Accrual 51(45)58(177) Total - Cash Basis $816$1,006$3,210$2,787 Attributable to Newmont (Accrual Basis)$621$829$2,535$2,328 Supplemental Information Non-GAAP Financial MeasuresNon-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.Reconciliation of Adjusted Net Income to GAAP Net IncomeManagement of the Company uses Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items. Management's determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.Net income attributable to Newmont stockholders is reconciled to Adjusted net income as follows: Three months ended  Years ended  December 31,  December 31,  (in millions except per share, after-tax) 2012201120122011 GAAP Net income (1) $ 673$(1,028)$1,809$   366 Loss from discontinued operations (28)-76136 Restructuring and other 6-26- Boddington contingent consideration -181 Acquisition costs ---18 Income tax benefit from internal restructuring (59)-(59)(65) Impairments/asset sales, net (40)1,604(10)1,714 Adjusted net income $ 552$    577$1,850$2,170 Adjusted net income per share, basic $1.11$   1.17$  3.73$  4.39 Adjusted net income per share, diluted $1.11$   1.14$  3.71$  4.31 (1) Attributable to Newmont stockholders.  All-in Sustaining Costs per ounceThree Months Ended December 31, Twelve Months Ended December 31, 2012201120122011Costs applicable to sales$1,131$1,025$4,238$3,890G&A Expense$50$53$212$198Exploration Expense$47$95$356$350Advanced Projects and R&D Expense$90$126$348$373Other Expense(1)$47$52$235$226Sustaining Capital$434$527$1,678$1,629Copper By-product Credit$(216)$(271)$(785)$(1,262)All-in Sustaining Cost ($M)$1,583$1,607$6,282$5,404Consolidated Gold sold (thousand ounces):1,3281,4935,4665,820All-in Sustaining Cost per ounce ($/oz)$1,192$1,076$1,149$929(1) Other Expense is adjusted for Hope Bay care and maintenance of $144, $17, $15, and $17; Restructuring and other charges of $58, $0, $10, and $0; and Acquisition costs of $12, $22, $0, and $0 for 2012, 2011, Q4 2012 and Q4 2011, respectively. CAS per Ounce/Pound CAS per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the CAS of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on both a consolidated and attributable to Newmont basis. Attributable CAS is based on our economic interest in production from our mines. For operations where we hold less than a 100% economic share in the production, we exclude the share of gold or copper production attributable to the non-controlling interest. We include attributable CAS per ounce/pound to provide management, investors and analysts with information with which to compare our performance to other gold producers. CAS per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently. Net attributable CAS per ounce measures the benefit of copper produced in conjunction with gold, as a credit against the cost of producing gold. A number of other gold producers present their costs net of the contribution from copper and other non-gold sales. We believe that including a measure of this basis provides management, investors and analysts with information with which to compare our performance to other gold producers, and to better assess the overall performance of our business. In addition, this measure provides information to enable investors and analysts to understand the importance of non-gold revenues to our cost structure. CAS per ounce/pound Gold(1)Copper(2)Years Ended December 31, Years Ended December 31, 2012 20112010  201220112010   CAS: Consolidated per financial statements $3,703$3,440$3,054  $535$450$430  Noncontrolling interests(3)(362)(442)(395) (198)(171)(169) Attributable to Newmont $3,341$2,998$2,659  $337$279$261   Gold/Copper sold (thousand ounces/million pounds):Consolidated 5,4665,8206,296  229356539  Noncontrolling interests(3)(679)(795)(1,043) (84)(153)(247) Attributable to Newmont(4)4,7875,0255,253  145203292   CAS per ounce/pound: Consolidated $677$591$485  $2.34$1.26$0.80  Attributable to Newmont $698$597$506  $2.33$1.37$0.89  (1)Consolidated CAS per financial statements includes by-product credits of $231, $291 and $245 for 2012, 2011 and 2010, respectively. (2)Consolidated CAS per financial statements includes by-product credits of $11, $28 and $29 for 2012, 2011 and 2010, respectively. (3)Relates to partners' interests in Batu Hijau and Yanacocha. (4)Does not include any sales from our non-consolidated interests in LaZanja and Duketon.  Net attributable CAS per ounceYears Ended December 31,2012 20112010 Attributable CAS: Gold $3,341$2,998$2,659Copper  3372792613,6783,2772,920 Copper revenue: Consolidated (785)(1,262)(1,848)Noncontrolling interests(1)289542847(496)(720)(1,001) Net attributable CAS $3,182$2,557$1,919 Attributable gold ounces sold (thousands) 4,7875,0255,253 Net attributable CAS per ounce $665$509$365(1)Relates to partners' interests in Batu Hijau. Conference Call InformationNewmont Mining Corporation (NYSE: NEM) announced it will report Fourth Quarter and Year-End 2012 results after the market closes on Thursday, February 21, 2013. A conference call will be held on Friday, February 22, 2013 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company's website. Conference Call DetailsDial-In Number 888.566.1822Intl Dial-In Number 312.470.7116Leader John SeabergPasscode Newmont Replay Number 866.380.6745Intl Replay Number 203.369.0348Replay Passcode 2013Webcast DetailsURL http://services.choruscall.com/links/newmont130222.html Cautionary Statement This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws.  Such forward-looking statements may include, without limitation: (i) estimates of future production and sales; (ii) estimates of future CAS; (iii) estimates of future consolidated and attributable capital expenditures, CAS, and all-in sustaining cost; and (iv) expectations regarding the development, growth and exploration potential of the Company's projects. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect.  Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current mineral reserve and mineral resource estimates. 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 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 the "forward-looking statements".  Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes.  For a more detailed discussion of such risks and other factors, see the Company's 2012 Form 10-K, filed on February 22, 2013, with the Securities and Exchange Commission, as well as the Company's other SEC filings.  The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.  Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.[1] Non-GAAP measure.  See page 13 for reconciliation.[2] Attributable gold CAS was $698 per ounce for 2012.  [3] Non-GAAP measure.  See page 13 for reconciliation.[4] Please see Newmont's Form 10-K filed on February 21, 2013.[5] Outlook referenced in the table above and elsewhere in this release is based upon management's good faith estimates as of February 21, 2013 and are considered "forward-looking statements." References to outlook guidance are based on current mine plans, assumptions noted above and current geotechnical, metallurgical, hydrological and other physical conditions, which are subject to risk and uncertainty as discussed in the "Cautionary Statement" on page 15 and in the section entitled "Risk Factors" in the Company's form 10-K.[6] 2013 Annual CAS, inclusive of hedge gains and losses, are expected to change by approximately $13 per ounce for every $10 change in the oil price and by approximately $6 per ounce for every $0.10 change in the Australian dollar exchange rate.   SOURCE Newmont Mining CorporationFor further information: Media, Omar Jabara, +1-303-837-5114, omar.jabara@newmont.com, or Diane Reberger, +1-303-967-9455, diane.reberger@newmont.com, or Investors, John Seaberg, +1-303-837-5743, john.seaberg@newmont.com, or Karli Anderson, +1-303-837-6049, karli.anderson@newmont.com