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Transcript of newmont mining 1_Exploration_Reserve_FINAL1
1
Exploration & ReservesExploration & Reserves
Stephen Enders, Sr. VP, Worldwide Exploration
2February 8, 2008
Cautionary Statement
Cautionary Note to U.S. Investors – The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation such as “measured”, “indicated”, “inferred”, and “resources,” that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 8-K, File No. 001-31240, which may be secured from us, or from the SEC’s website at: http//sec.gov/edgar.shtml.
This presentation 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, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and copper production and sales; (ii) estimates of future costs applicable to sales and the components thereof; (iii) estimates of future capital expenditures and project costs; (iv) estimates regarding timing of future development, construction or production activities; (v) statements regarding future exploration results and reserves; and (vi) statements regarding potential cost savings, productivity, operating performance, cost structure and competitive 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, 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, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2006 Annual Report on Form 10-K, filed February 26, 2007 which is on file with the Securities and Exchange Commission, as well as the Company’s other SEC filings, including the prospectus supplement dated October 15, 2007. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” 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.
3February 8, 2008
Agenda
Gold Deposit Realities
The Limits to Discovery
Newmont’s Track Record
2007 Reserves and Non-Reserve Mineralization
2008 Exploration Program
Hope Bay Project
Boddington Project
Nassau Discovery
4February 8, 2008
Actual Distribution Of Gold Deposits Total Resource And Reserves (Oz)Actual Distribution Of Gold Deposits Total Resource And Reserves (Oz)
Freq
uenc
y
Contained Gold (mm Oz)
Gold Deposit Realities
2.2
Only 4% of All Gold Deposits are Over 5 Million Ounce
5February 8, 2008
764 / 855 Deposits With Known Geographic Coordinates
Gold Deposit Realities
6February 8, 2008
Benchmarking Discovery*
Industry Track Record (1985-2003)
190 deposits > 1 mm oz containing 895 mm oz
Discovery rate is about ten 1 mm oz deposits per year
Approximately 5 of 10 are >3 mm oz, and only 14 total >10 mm oz
Cost of $28.6 B or ~$32/oz (greenfields and advanced projects)
The Limits to Discovery
*Industry Data from Schodde, 2004
7February 8, 2008
Number of Gold Discoveries Found Per Year Over 1 Million Ounces
0
5
10
15
20
25
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Num
ber o
f Dis
cove
ries
$0
$1
$2
$3
$4
$5
Expl
orat
ion
Expe
nditu
res
($ B
illio
n)
**
•Early Stages of Exploration DataSource: PACRIM 2004 & MEG
The Limits to Discovery
Industry Exploration Expenditures
8February 8, 2008
Newmont Track Record (1986-2004)
15 mm ozs discovered and initially reported from greenfields at costs of ~$50/oz
Resulted in 49 mm oz at ~$16/oz including growth from near-mine
Newmont’s Track Record
9February 8, 2008
Newmont’s Track Record
10February 8, 2008
Newmont’s Track Record
Total Reserve Ounce Differential = 52.4 Million OuncesFive-Year Exploration Cost = $804 Million
0
20
40
60
80
100
2003 2004 2005 2006 2007Cumulative Reserves From ExplorationReserves Without Exploration Success Peer Group Average*
91.3 92.4 93.2 93.8
64.855.5
46.941.4
Moz
86.5
34.1
*Peer Group includes: ABX, AU, GFI, PDG
11February 8, 2008
2007 Results –Gold Reserve Reconciliation
0.93.4
0.73.5
93.9
7.2
86.5
75
80
85
90
95
100
Actu
al 20
06
Margin
Change
Additio
ns
Deplet
ion
Divestm
ents
Revisi
ons
Actual
2007
Oun
ces
(mill
ion)
Industry-Wide Cost Pressures Impacting Reserves:
Gold Price Assumption Increased 15%
Average Industry Operating Costs Increased 24%
*Source: GFMS
12February 8, 2008
2007 Results –Gold NRM* Reconciliation
*Non-Reserve Mineralization
3.4
0.3 5.6
1.02.3
31.8
25.9
15
20
25
30
35
Actu
al 20
06
Margin
Change
Additio
ns
Conve
rsion
Divestm
ents
Revisi
ons
Actual
2007
Oun
ces
(mill
ion)
13February 8, 2008
2008 Exploration Program
Total 2008 Consolidated Budget ($ million)Expensed $220 - $230Capitalized $ 20 - $ 25 Total $240 - $255
Inflation Impact 11% Drilling Inflation4% Labor Inflation2% Foreign Exchange Impact
Budget by Category
Labor23%
ESR/Land/Legal 4%
Direct Drilling57%
Field Logistics 4%
Technical Support 6%G & A 5%
14February 8, 2008
0
100
200
2004 2005 2006 2007 2008
New
mon
t Exp
l Bud
gets
($$
M)
0
100
200
300
400
Au
Indu
stry
Con
solid
ated
Expl
orat
ion
Bud
gets
($$
B)
Original FALC JVNassau Hope BayAu Industry Expl Budgets* MajorsNewmont
2004-2008 Budget ComparisonConsolidated $
* Source: Minerals Economics Group; 2007 estimated
$240 - $255
$198$187 $180 $188
Newmont Budget Increase 11%Industry Budget Increase 187%*
15February 8, 2008
2008 Exploration Program
16February 8, 2008
P95 Resource = 5.5 Moz
Hope Bay Project
Hope Bay
17February 8, 2008
80 kilometer gold-rich greenstone belt
Three known deposits:
Doris
Madrid
Boston
+20 identified prospectsin 5 regional camps
Kamik
Hope Bay Project
18February 8, 2008
0
2
4
6
8
10
12
1999 2000 2001 2002 2003 2004 2005 2006
Au
(mill
ion
ounc
es)
Miramar Reported Resources Miramar Reported Reserves
BHP
MIRAMAR
Hope Bay Project –Discovery History
19February 8, 2008
Boddington Project
A
A’
20February 8, 2008
Boddington Project
Reserves
02
468
101214
1618
1994
1995
1996
1997
1998
1999
2000
FS 2001
2002
2003
2004
2005
FSU
2006
2007
Au
(Moz
)
Newmont (44.44%)
FeasibilityStudy Update 2
Pre-FeasibilityStudy
Project ApprovalFeasibility
StudyFeasibility
Study Update
Newmont(66.7%)Normandy (44.44%)
Projectexpansion
PurchaseHedges Gold Mine
21February 8, 2008
Nassau Discovery
7750
00 m
E77
5000
mE
7750
00 m
E77
5000
mE
7750
00 m
E77
5000
mE
7750
00 m
E77
5000
mE
7750
00 m
E
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E
550000 mN550000 mN550000 mN550000 mN550000 mN550000 mN550000 mN550000 mN550000 mN
575000 mN575000 mN575000 mN575000 mN575000 mN575000 mN575000 mN575000 mN575000 mN
600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN
525000 mN525000 mN525000 mN525000 mN525000 mN525000 mN525000 mN525000 mN525000 mN
7250
00 m
E72
5000
mE
7250
00 m
E72
5000
mE
7250
00 m
E72
5000
mE
7250
00 m
E72
5000
mE
7250
00 m
E
7500
00 m
E75
0000
mE
7500
00 m
E75
0000
mE
7500
00 m
E75
0000
mE
7500
00 m
E75
0000
mE
7500
00 m
E
500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN
20 Km
Pakira
Margo Mining
Santa Barbara
Merian
Witlage
Western Witlage
Maraba and Merian II Pits600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN600000 mN
6000
00 m
E60
0000
mE
6000
00 m
E60
0000
mE
6000
00 m
E60
0000
mE
6000
00 m
E60
0000
mE
6000
00 m
E
200000 mN200000 mN200000 mN200000 mN200000 mN200000 mN200000 mN200000 mN200000 mN
300000 mN300000 mN300000 mN300000 mN300000 mN300000 mN300000 mN300000 mN300000 mN
5000
00 m
E50
0000
mE
5000
00 m
E50
0000
mE
5000
00 m
E50
0000
mE
5000
00 m
E50
0000
mE
5000
00 m
E
80 Km
400000 mN400000 mN400000 mN400000 mN400000 mN400000 mN400000 mN400000 mN400000 mN
500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN500000 mN
Guyana
Nassau ProjectNassau ProjectNassau ProjectNassau ProjectNassau ProjectNassau ProjectNassau ProjectNassau ProjectNassau Project
ParamariboParamariboParamariboParamariboParamariboParamariboParamariboParamariboParamaribo∃∃∃∃∃∃∃∃∃
Fren
ch
Guy
ana
7000
00 m
E70
0000
mE
7000
00 m
E70
0000
mE
7000
00 m
E70
0000
mE
7000
00 m
E70
0000
mE
7000
00 m
E
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E80
0000
mE
8000
00 m
E
Atlantic Ocean
Brasil
S U R I N A M E
22
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