Newmont Has Strong First Quarter Results

DENVER, CO - In the first quarter of 2008, Newmont Mining reported equity gold sales of 1.29 million ounces at costs applicable to sales of $396 per ounce in the first quarter. Equity gold sales were largely in line with management's expectations as higher than anticipated grades at Jundee (Australia) and inventory reductions at Yanacocha (Peru) and Batu Hijau (Indonesia) offset shortfalls from the timing of production at Twin Creeks (Nevada) and lower grades and unplanned mill maintenance at Ahafo (Ghana). The Company's costs applicable to sales were impacted by increased commodity prices, with higher royalty and tax payments offset by favorable copper and silver by-product credits.
Nevada mines sold 526,000 equity ounces at costs applicable to sales of $409 per ounce during the first quarter. Nevada ended the quarter with higher than anticipated finished goods inventories as well as higher than planned leach ore placement at Twin Creeks and Carlin North, which benefited the first quarter costs applicable to sales and will benefit future gold sales during the year. Recovered ounces were slightly lower than plan due to the timing of ore recoveries at the Twin Creeks leach pads, however, this production is expected to be recovered during the second and third quarters.
Phoenix sold 40,500 equity ounces of gold at costs applicable to sales of $401 per ounce during the first quarter of 2008, compared to 48,700 equity ounces at costs applicable to sales of $691 per ounce during the fourth quarter of 2007. The costs applicable to sales improvements were primarily driven by increased by-product sales and realized prices. Efforts to improve operating performance at Phoenix continue, with the new crusher approximately 74% complete and expected to be in operation around mid-year. Additionally, the new mine plan remains on schedule to be finalized around mid-2008.
Construction of the 200 megawatt coal-fired power plant in Nevada was approximately 87% complete at the end of the quarter. Commissioning remained on track during the first quarter of 2008, with commercial production expected in the second quarter. Capital costs are in line with previous expectations of between $620 and $640 million. As disclosed previously, the lower cost of self-generated electricity, when compared with projected future market prices in the region, is expected to reduce Nevada's costs applicable to sales by $60 million per year, or approximately $25 per ounce.
The company's address is 1700 Lincoln Street, Denver, CO 80203, (303) 863-7414, fax: (303) 837-5837.