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Newmont Mining’s Gold Resources Increased To 48.2 Million Ounces

DENVER, CO - Newmont Mining Corporation reported that North America production is expected to be between 2.0 and 2.2 million ounces in 2018 with production in Nevada from Northwest Exodus, Twin Underground and the Silverstar pit offsetting higher stripping at Carlin and Twin Creeks, and lower grade ore at Cripple Creek & Victor, in Colorado. Production declines slightly in 2019 to between 1.8 and 2.0 million ounces due to planned stripping at Carlin and then increases to between 1.9 and 2.1 million ounces in 2020 due to higher grades at Twin Creeks, Cripple Creek & Victor and Long Canyon. The Company owns or controls approximately 2.6 million acres in Nevada and 41,000 acres in Colorado. Of these totals, about 125,000 acres of private and public land in Nevada and 6,000 acres in Colorado are reserved for mining use. Portions of that acreage have already been reclaimed, are undergoing reclamation or remain undisturbed. The North America operations account for around 40 percent of the Company’s worldwide gold production.continues to pursue profitable growth opportunities at Carlin and Long Canyon.

In 2017 Newmont’s gold resources increased to 48.2 million ounces, up one percent from the prior year and offsetting the conversion of resource ounces to reserves. It also added 6.9 million ounces of gold resource through exploration and studies at a constant gold price and 0.7 million ounces through acquisitions which more than offset the conversion of 7.2 million ounces to reserves. In addition the Company added 6.4 million ounces of gold reserves, 4.4 million ounces through exploration and projects and 2.0 million ounces through revisions and acquisitions; plus reported 5.3 million ounces of attributable mine production in 2017 resulting in 6.4 million contained ounces of reserve depletion. Notable additions and revisions for the year include 1.8 million ounces at Boddington, 0.8 million ounces each at Carlin Underground and Cripple Creek & Victor, 0.7 million equity ounces at Turquoise Ridge, 0.6 million ounces at Ahafo Open Pits and 0.4 million ounces at Tanami.

Gary J. Goldberg, President and Chief Executive Officer said, “Newmont continued its steady trajectory of improving operational and financial performance in 2017, and built a stronger base for long-term value creation. We improved adjusted EBITDA by 12 percent to $2.7 billion and free cash flow by 88 percent to $1.5 billion on the back of lower cost production from newer mines and ongoing productivity improvements across the portfolio. This performance gave us the means to invest in five new projects, raise our dividend by 87 percent, and increase our investment in exploration – an investment that paid off as we added 6.4 million ounces of gold to our Reserve base, offsetting depletion for the first time in five years. The adjusted net income for the full year was $780 million, compared to $619 million in the prior year. Adjusted net income for the quarter was $216 million, up 60 percent from $133 million in the prior year quarter. Revenue rose nine percent to $7,348 million for the full year, and fourth quarter revenue rose eight percent to $1,935 million, on increased sales volumes and higher average realized gold prices.”
Newmont’s South America production is expected to be between 615,000 and 675,000 ounces in 2018 as Merian, in Suriname, delivers mine and mill productivity improvements that partially offset, in Peru, Yanacocha’s lower production resulting from lower grades and recoveries from deep transitional ore. Production is expected to be between 590,000 and 690,000 ounces in 2019 with the addition of Quecher Main and between 475,000 and 575,000 ounces per year in 2020 as Yanacocha laybacks are mined out and Merian transitions from saprolite to hard rock. The Company continues to advance near-mine growth opportunities at Merian and both oxide and sulfide potential at Yanacocha.

In Australia production is expected to be between 1.5 and 1.7 million ounces in 2018 due to higher grade, recovery and throughput improvements at Tanami and KCGM which offset increased stripping at Boddington. Production is expected to be between 1.4 and 1.6 million ounces in 2019 and 2020. In 2020, Boddington completes stripping and accesses higher grade ore which offsets the impact of processing lower grade stockpiles at KCGM. The Company continues to advance studies for a second expansion at Tanami.

Production is expected to be between 815,000 and 875,000 ounces in 2018 in Africa, as full potential mining improvements at the Subika open pit and a full year of Subika underground production offset the effects of harder, lower grade ore at Akyem. Production is expected to be between 1.1 and 1.2 million ounces in 2019 as the Ahafo Mill expansion reaches commercial production and between 880,000 and 980,000 ounces in 2020 as both Ahafo and Akyem reach lower open pit grade. The company continues to advance the Ahafo North project and other prospective surface and underground opportunities.

Attributable gold production increased eight percent to 5.27 million ounces for the full year compared to the prior year primarily due to new production at Merian and Long Canyon, partially offset by lower grade at Twin Creeks, Yanacocha and Tanami, and adverse weather conditions at Yanacocha and Tanami; production for the fourth quarter rose one percent to 1.34 million ounces on higher throughput and grade at Merian and Tanami and a full quarter of production at Long Canyon which offset lower grade and recovery at CC&V, harder ore at Akyem and lower grade at Boddington. Newmont’s outlook reflects stable gold production and ongoing investment in its operating assets and most promising growth prospects. It does not include development projects that have not yet been funded or reached execution stage in its outlook, which represents upside to production and cost guidance. The attributable gold production is expected to be between 4.9 and 5.4 million ounces in 2018 and 2019, mainly driven by full potential mine plan, throughput and recovery improvements. Longer term production is expected to remain stable at between 4.6 and 5.1 million ounces per year through 2022 excluding development projects which have yet to be approved. Copper attributable production is expected to remain between 40,000 and 60,000 tonnes in 2018 and 2019, increasing to between 45,000 and 65,000 tonnes longer term through 2022 as Phoenix moves into higher copper zones.

Newmont’s operational focus is to continuously improve our cost and technical performance and maintain world class social and environmental practices. This gives us the financial flexibility to invest in our most promising growth options, provide competitive returns to shareholders and maintain a strong balance sheet.