newmont mining 8_Fin_Results_Final
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Transcript of newmont mining 8_Fin_Results_Final
1
2008 Financial Overview 2008 Financial Overview
Russell Ball, Senior Vice President and Chief Financial Officer
2February 8, 2008
2007 Equity Gold Sales
Company’s Equity Gold Sales2007A: 5.3 million ounces2007F: 5.2 – 5.6 million ounces
(1) Includes sales from discontinued operations for Pajingo in 2007
2,34
1
803
1,32
4
446 174
233 15
5 - 1
90
410
- 450
230
- 250
1,27
5 - 1
,325
775
- 825
2,35
0 - 2
,550
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Nevada Yanacocha Australia/NZ Batu Hijau Ahafo Other
000
ozs
2007 Actual 2007 Outlook at Beginning of Year
(1)
3February 8, 2008
2007 CAS ($/oz)$4
44
$345
$243
$396
$332
$496
$305
- $3
25
$460
- $5
00
$225
- $2
40
$445
- $4
70
$340
- $3
60
$375
- $4
00
$0
$200
$400
$600
$800
Nevada Yanacocha Australia/NZ Batu Hijau Ahafo Other
CA
S ($
/oz)
2007 Actual 2007 Outlook at Beginning of Year
CAS ($/oz)2007A: $406 2007F: $375 - $400
4February 8, 2008
2007 CAPEX
$588
$253
$134
$597
$74
$560
- $6
30
$310
- $3
40
$580
- $6
45
$140
- $1
50
$180
- $2
00
$0
$200
$400
$600
$800
$1,000
Nevada Yanacocha Australia/NZ Batu Hijau Ahafo
CA
PEX
($ m
illio
n)
2007 Actual 2007 Outlook at Beginning of the Year
CAPEX (in billions)2007A: $1.72007F: $1.8 – $2.0
5February 8, 2008
190 – 205Other
1,060 – 1,120Australia/New Zealand
885 – 925Yanacocha
2,270 – 2,400Nevada
495 – 530Ahafo
5,100 – 5,400Total Equity Gold Sales (000 ozs)
150 – 165
2008F
Batu Hijau
Equity Gold Sales (000 ozs)
155 – 165Total Equity Copper Sales (million lbs)
155 – 165
2008F
Batu Hijau
Equity Copper Sales (million lbs)
2008 Equity Sales Outlook
6February 8, 2008
$340 - $360Other
$585 - $625Australia/New Zealand
$370 - $390Yanacocha
$400 - $430Nevada
$485 - $520Ahafo
$425 - $450Gold CAS ($/oz)
$285 - $325
2008F
Batu Hijau
Gold CAS ($/oz)
$1.30 - $1.40Copper CAS ($/lbs)
$1.30 - $1.40
2008F
Batu Hijau
Copper CAS ($/lbs)
2008 CAS Outlook ($/oz)
7February 8, 2008
$150 - $155Ahafo
$145 - $195Batu Hijau
$1,800 - $2,000Consolidated CAPEX ($ million)
$800 - $850Australia/New Zealand
$250 - $290Yanacocha
$350 - $400Nevada
$1,600 - $1,800Equity CAPEX
~$30
2008F
Hope Bay
Consolidated CAPEX ($/million)
$75 - $85Power Plant, Nevada
$35 - $40Gold Mill, Yanacocha
$625 - $675
2008F
Boddington, Australia
Major Project ($/million)
2008 CAPEX Outlook
8February 8, 2008
2008 Equity Sales Outlook
5,321
4,700
4,900
5,100
5,300
5,500
5,700
2007 Actual 2008 Outlook
Equi
ty G
old
Sale
s (0
00 o
zs)
5,100 - 5,400
Yana
coch
a
Afri
ca
Oth
er O
pera
tions
Nev
ada
Indo
nesi
a
Aus
tralia
/NZ
~ 100~ 70 ~ 20 ~ (30) ~ (70)
~ (240)
9February 8, 2008
2008 CAS Outlook ($/oz)
$406
$300
$320
$340
$360
$380
$400
$420
$440
$460
$480
2007 Actual 2008 Outlook
Cos
ts A
pplic
able
to S
ales
per
Oun
ce ~ $20
~ $10
~ ($20) $425-$450Pa
rts
and
Supp
lies
Labo
r Die
sel
Con
sum
able
s
Elec
tric
ity
Prod
uctio
n
Con
trac
t Ser
vice
s
Oth
er
~ $5 ~ ($5) ~ ($5)
~ $30
~ ($5)
10February 8, 2008
Batu Hijau Divestiture UpdateLocation
11February 8, 2008
Batu Hijau Divestiture UpdateOwnership Structure
Current Ownership & Structure
PT Pukuafu Indah (PTPI)Indonesia
Nusa Tenggara Mining Corp, JapanSumitomo Corp – 74.3%
Sumitomo Metal & Mining Co., Ltd – 14.3%Mitsubishi Materials Corp – 7.1%
Furukawa Co Ltd – 4.3% Newmont Indonesia Ltd. Delaware
Newmont Mining Corporation Delaware
80%
56.25%
20%
43.75%
100%
Nusa Tenggara Partnership, Netherlands (“NTP”)
Current Ownership & StructureCurrent Ownership & Structure
PT Pukuafu Indah (PTPI)Indonesia
Nusa Tenggara Mining Corp, JapanSumitomo Corp – 74.3%
Sumitomo Metal & Mining Co., Ltd – 14.3%Mitsubishi Materials Corp – 7.1%
Furukawa Co Ltd – 4.3% Newmont Indonesia Ltd. Delaware
Newmont Mining Corporation Delaware
80%
56.25%
20%
43.75%
100%
Nusa Tenggara Partnership, Netherlands (“NTP”)
Divestment Obligations
Existing Divestiture Schedule
CoW requirement
to offer to Indonesians
Existing Indonesian
Interest (PTPI)
Required Shares to be Offered by
NTP Potential
NTP InterestMarch 31, 2005 15% 20% 0% 80% March 31, 2006 23% 20% 3% 77% March 31, 2007 30% 20% 10% 70% March 31, 2008 37% 20% 17% 63% March 31, 2009 44% 20% 24% 56% March 31, 2010 51% 20% 31% 49%
Divestment Obligations
Existing Divestiture Schedule
CoW requirement
to offer to Indonesians
Existing Indonesian
Interest (PTPI)
Required Shares to be Offered by
NTP Potential
NTP InterestMarch 31, 2005 15% 20% 0% 80% March 31, 2006 23% 20% 3% 77% March 31, 2007 30% 20% 10% 70% March 31, 2008 37% 20% 17% 63% March 31, 2009 44% 20% 24% 56% March 31, 2010 51% 20% 31% 49%
12February 8, 2008
Batu Hijau Divestiture Update
ValuationContract of Work
“…then current replacement cost…”“…would be accepted for listing on Jakarta stock exchange…”“… fair valuation… as a going concern… agreed with Government …”
2006 Valuation $3.64 billion (100%)$109 million (for 3% required divestiture)
2007 Valuation $4.03 billion (100%)$282 million (for 7% required divestiture)
2008 Valuation (further 7% divestiture)Required as of 12/31/07Offered to Indonesian Government by March 31, 2008
13
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