Newmont Mining Corporation Third Quarter Operations And Full Year Outlook on Target

Denver (PROTEXT) - Newmont Mining Corporation (NYSE: NEM)earned $2.3 million, or 2 cents per share, before non-cash,hedge-related accounting charges, in the quarter ended September30, 1999. The realized gold price for the period was $271 perounce. This compares with earnings of $6.1 million, or 4 centsper share, at a realized gold price of $295 per ounce in thecorresponding 1998 quarter. Equity gold production rose fourpercent to 1,043,000 ounces, while total cash costs were reducedsix percent to $174 per ounce and total production costs declined10 percent to $228 per ounce. "Our ability to systematically reduce costs and generatestrong operating cash flow during a time when the gold price hita 20-year low demonstrates Newmont's continued success inimproving productivity and optimizing operations," said Ronald C.Cambre, Chairman and Chief Executive Officer. "At the same time,we are maintaining full upside potential for our shareholders toparticipate in what we expect to be an improving gold market." Third quarter 1999 results included a gain of 3 cents pershare from the sale of securities received in exchange for theCompany's interest in Argentina Gold Corporation and a charge of1 cent per share for start-up expenses at Batu Hijau. The 1998quarter also included a 1 cent per share in Batu Hijau start-upcosts. During the third quarter, Newmont initiated a gold priceprotection program involving the purchase of put options financedby the sale of a limited number of long-dated call options. Thislimited hedge position contains no lease rate or margin callrisk. As a proponent of full disclosure and uniform reportingpractices, the Company sought and obtained clarification from itsindependent public accountants and the U.S. Securities andExchange Commission regarding the appropriate accountingtreatment for these transactions. As a result, after tax, non-cash charges of $41.3 million, or 25 cents per share, wererecorded in the third quarter (5 cents relating to amortizationof the put premium and 20 cents to mark-to-market the callposition). Following this treatment, the company's net loss forthe quarter was $39 million, or 23 cents per share. Net sales of $328 million during the 1999 third quartercompared with $349.9 million a year earlier. North Americanoperations produced 649,400 ounces in the 1999 third quarter at atotal cash cost of $215 per ounce. This compares with 720,400ounces at a total cash cost of $214 per ounce in the prior yearperiod. International operations posted a 39 percent increase inproduction to 393,600 equity ounces of gold and a six-percentreduction in total cash costs to $108 per ounce. Notable accomplishments during the 1999 quarter versus the1998 period included: -- Production at Minahasa in Indonesia nearly doubled to98,300

ounces as total cash costs fell 37 percent to $99 perounce. -- Zarafshan-Newmont in Uzbekistan produced 155,600 ounces

(77,800 equity ounces), an 86-percent increase while total

cash costs dropped26 percent to $153 per ounce. -- Minera Yanacocha in Peru produced 423,700 ounces (217,500

equity ounces), 13 percent greater than last year, attotal

cash costs of $96 per ounce. For the nine months ended September 30, Newmont had earningsbefore non cash charges of $19.3 million, or 12 cents per share,including $13.6 million, or 8 cents per share, from the sale ofassets (the Argentina Gold interest and the True North propertyin Alaska) offset in part by start-up costs of $9.3 million, or 6cents per share, at Batu Hijau. After accounting for the puts andcalls, the company's net loss for the nine months was $22million, or 13 cents per share. Before non-cash charges in the 1998 nine months, Newmontearned $61 million, or 39 cents per share, after including $4.9million, or 3 cents per share for the start-up at Batu Hijau. Netincome in the year ago period of $28.1 million, or 18 cents pershare, included a $32.9 million, or 21 cents per share, chargefor a change in accounting for previous start-up costs. Operating cash flow for the 1999 nine months of $205.2million, or $1.23 per share, compared with $276.8 million, or$1.77 per share, a year ago. Net sales of $970.9 million were 12percent below the $1.10 billion recorded in the 1998 period asthe Company's realized gold price fell $33, or 11 percent, to$281 per ounce. Equity gold production of 2,951,600 ounces wasslightly lower than the prior year's 3,074,800 ounces. Total cashcosts per ounce were reduced three percent to $179 per ounce andtotal production costs declined six percent to $234 per ounce. North American operations produced 1,938,800 ounces of goldfor the nine months, down 14 percent from a year earlier ashigher cost production was curtailed in Nevada. Total cash costsof $210 per ounce rose only slightly from a year earlier as costreduction efforts helped offset increased processing ofrefractory ore and the lower production levels. Nevadaproduction, ore grades and costs are expected to improve in thefourth quarter and in 2000 as the Company accesses more ouncesfrom the high-grade Deep Post open pit deposit. Overseas operations produced 1,760,300 ounces (1,012,800equity ounces) during the nine-month period, 25 percent greaterthan last year. Correspondingly, total cash costs fell $4 to $120per equity ounce. Investments in the first nine months of $277.6 million(capital expenditures of $159.6 million and $118 million to fundthe Company's equity portion of the Batu Hijau project) werealmost $60 million less than a year earlier. In July, Newmontexecuted a prepaid forward gold sales contract and repaid $137million in revolving credit debt. Consequently, long-term debtdecreased to $1.1 billion and long-term debt to total capital onSeptember 30 decreased to 42 percent from 45 percent a yearearlier. Cash at the end of the quarter totaled $20.7 million. Looking forward, Mr. Cambre concluded: -- Start-up at Batu Hijau is proceeding ahead of schedulewith all material handling and processing facilities operatingbetter than expected. Mining rates of more than 300,000 tonnesper day and design processing rates of 120,000 tonnes per dayhave been achieved. In a remarkable achievement, the 30-monthconstruction project was completed in mid-October, more than amonth ahead of schedule, at a total capital cost of $1.8 billion,or $130 million under budget. The first shipment of copper/goldconcentrate is expected before year-end. -- In Nevada, development of the high-grade Deep Postunderground mine (0.75opt; 2.35 million ounces) is three monthsahead of schedule, with the decline having advanced 3,800 feet.Production is scheduled for mid-year of 2001. Also, theexploration drift connecting this ore body with the one-ounce-per-ton Deep Star mine has advanced 900 feet and is 17 percentcomplete. -- The Company's patented biomilling process in Nevada isunderway with the first low-grade refractory ore being stacked onthe reusable leach pad. Following a 100-day bio-oxidation cycle,the ore will be processed through Mill 5. Full-scale productionwill begin next year. -- Newmont expects to replace its reserves in 1999 followingsuccessful exploration efforts, primarily at Minera Yanacocha. Asignificant increase in reserves at this high-Andes mine has leadthe company to lift its production estimate for Yanacocha to 1.75million ounces (nearly 900,000 equity ounces) for next year. -- Significant benefits are expected from the company's GoldMedal Performance program that is engaging the entire work forcein an effort to drive-out inefficiencies, maximize cash flow andenhance shareholder value. -- With the above achievements, Newmont is on target toproduce 4.1 million equity ounces of gold in 1999 and 4.5 millionounces in 2000. Total cash costs will approximate $175 an ouncein both years. Importantly, with the company's leverage to thegold price, a $25 improvement in the metal price translates intoapproximately a 60-cent-per-share increase in operating cashflow. -- The company has substantially completed its Year 2000readiness program and is confident that its automated processes,process control systems, personal computers and major third-partysuppliers are Y2K compliant. Over the balance of the year, thecompany will implement contingency plans as well as test andcertify new vendor systems. (For supplemental information relating to this press releaserefer to Newmont's web site at www.newmont.com, under investorrelations. For additional information relating to Newmont's priceprotection program and hedge accounting treatment refer to apress release dated October 13, 1999, on the same website). This press release contains "forward-looking statements"within the meaning of Section 21E of the Securities Exchange Actof 1934, as amended, and are intended to be covered by the safeharbor created thereby. Such forward-looking statements include,without limitation, (i) estimates of future earnings, (ii)estimates of future gold production, (iii) estimates of futureproduction costs and (iv) estimates of future cash flow. Wherethe company expresses an expectation or belief as to futureevents or results, such expectation or belief is expressed ingood faith and believed to have a reasonable basis. However, suchforward-looking statements are subject to risks, uncertaintiesand other factors which could cause actual results to differmaterially from future results expressed or implied by suchforward-looking statements. Such risks include, but are notlimited to, gold price volatility, increased production costs andvariances in ore grade or recovery rates from those assumed inmining plans. For a more detailed discussion of such risks andother factors, see Page 15 of the company's 1998 Annual Report onForm 10-K. ots Original Text Service: Newmont Mining CorporationInternet: http://www.newsaktuell.de Contact: media, Doug Hock,(USA) 303-837-5812, or investors, Terry Terens, (USA) 303-837-6141, both of Newmont Mining Corporation Company News On-Call:http://www.prnewswire.com/comp/615675.html or fax, 800-758-5804,ext. 615675 Web site: http://www.newmont.com

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