Newmont Reports 76% Increase in Net Income to a Record $2.3 Billion and Record $3.2 Billion of Operating Cash Flow in 2010

    <<
    This release should be read in conjunction with Newmont's 2010 Form 10-K
    filed with the Securities and Exchange Commission on February 24, 2011
    (available at www.newmont.com).




    >>

DENVER, Feb. 24, 2011 /CNW/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today announced that net income increased 76% to $2.3 billion ($4.63 per share) in 2010, compared to $1.3 billion ($2.66 per share) in the prior year. Operating cash flow was a record $3.2 billion for 2010, compared to $2.9 billion in 2009. Adjusted net income(1) rose 39% to a record $1.9 billion ($3.85 per share) from $1.4 billion ($2.79 per share) in 2009, while the Company's gold operating margin(2) increased by 30% to $737 per ounce in 2010, from $566 per ounce in 2009.

    <<

    2010 Highlights:

    --  Attributable gold and copper production of 5.4 million ounces and 327
        million pounds, respectively, with gold production slightly higher and
        copper production approximately 44% higher than in 2009;
    --  Record revenue of $9.5 billion, an increase of 24% from 2009;
    --  Average realized gold and copper price of $1,222 per ounce and $3.43
        per pound, respectively;
    --  Gold operating margin increase(3) of 30%, compared with an average
        realized gold price increase of 25%;
    --  Consolidated costs applicable to sales for gold and copper of $485 per
        ounce and $0.80 per pound, respectively; and
    --  Cash and cash equivalents of more than $4 billion on December 31,
2010.


    Q4 2010 Highlights:

    --  Attributable gold and copper production of 1.4 million ounces and 74
        million pounds, respectively;
    --  Average realized gold and copper price of $1,366 per ounce and $4.52
        per pound, respectively; and
    --  Costs applicable to sales for gold and copper of $512 per ounce and
        $0.95 per pound, respectively.


    >>

"I am pleased to report that we generated record operating cash flow for the second year in a row, with our gold operating margin growing by 30% to $737 per ounce on an average realized gold price of $1,222 in 2010," stated Richard O'Brien, President and CEO. "As a whole, our operations performed according to our plans, producing 5.4 million attributable ounces of gold in 2010. We continue to advance our Conga Project in Peru, which contains over 6 million attributable ounces of gold and 1.6 billion attributable pounds of copper reserves. Similarly, we continued to advance with our Akyem Project in Ghana, which contains over 7 million attributable ounces of gold reserves. Advancing these two world-class mining projects, as well as continuing our drilling programs at Hope Bay in Canada, remain some of our top priorities in 2011."

    <<

    Portfolio Wide Operating Results and Outlook

    >>

In 2010, the Company reported attributable gold and copper production of 5.4 million ounces and 327 million pounds, respectively, at costs applicable to sales of $485 per ounce, and $0.80 per pound, respectively, on a co-product basis. Attributable 2010 gold production increased over 2009 levels due to the first full year of production at Boddington and a full year of mining higher grade ore from the bottom of the pit at Batu Hijau. Costs applicable to sales per gold ounce sold increased 18% over the prior year due to lower production from South America, a full year of higher cost production at Boddington and higher diesel, royalty and waste mining costs, partially offset by higher by-product credits. Costs applicable to sales per copper pound sold increased 25% over the prior year due to higher waste mining at Batu Hijau and a full year of higher cost production at Boddington, partially offset by higher production from Batu Hijau.

2011 attributable gold production is expected to be approximately 5.1 million to 5.3 million ounces, with attributable copper production of 190 to 220 million pounds. The volume outlook reflects lower expected production at Batu Hijau as it moves into Phase 6 stripping, partially offset by higher production expected at Nevada and Ahafo. Costs applicable to sales are expected to be between $560 and $590 per ounce due to lower expected production at Batu Hijau, combined with higher expected costs for energy, labor, and contracted services. Costs applicable to sales are expected to be between $1.25 and $1.50 per pound of copper due to lower production at Batu Hijau.

    <<

    Regional Operations

    North America

    >>

Nevada Attributable gold production was 429,000 ounces in the fourth quarter and 1.7 million ounces in 2010. Costs applicable to sales were $520 and $565 per ounce for the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower leach placement at Twin Creeks and Carlin, lower Gold Quarry ore mined as a result of the slope failure in late 2009 and lower mill ore grade due to the completion of mining at Deep Post in December 2009. Costs applicable to sales per ounce increased from the prior year quarter due to lower production, partially offset by higher by-product credits.

2010 attributable gold ounces decreased 13% due to the completion of underground mining at Deep Post in 2009, lower Gold Quarry ore mined as a result of a slope failure which occurred in December 2009 and lower leach tons placed at Twin Creeks and Carlin, partially offset by increased underground mining at Leeville. Total ore tons mined were 26% lower, primarily due to the Gold Quarry slope failure and the completion of mining at North Lantern in April 2010. Ore placed on leach pads decreased 62% to 4.5 million tons. Costs applicable to sales per ounce increased 11% due to lower production, partially offset by higher by-product credits.

La Herradura Attributable gold production was 49,000 ounces in the fourth quarter and 174,000 ounces in 2010. Costs applicable to sales were $434 and $420 per ounce in the fourth quarter and 2010, respectively.

Fourth quarter production increased from the prior year quarter due to higher leach placement. Costs applicable to sales per ounce increased from the prior year quarter due to higher waste mining costs.

2010 attributable gold ounces produced increased 54% in 2010 from the prior year due to the commencement of commercial production at the Soledad and Dipolos pits in January 2010. Costs applicable to sales per ounce increased 13% due to higher waste tons mined.

2011 attributable gold production in North America is expected to be approximately 2.0 to 2.1 million ounces at costs applicable to sales of approximately $560 to $600 per ounce. Production from Nevada has been impacted by the December 2009 slope failure at Gold Quarry, limiting access to ore originally scheduled to be mined in 2010 and 2011. During 2010, the Company mined through the impacted area and expects to reestablish access to ore in the first half of 2011.

    <<

    South America

    >>

Yanacocha Attributable gold production was 170,000 ounces in the fourth quarter and 750,000 ounces in 2010. Costs applicable to sales were $559 and $431 per gold ounce in the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower leach placement, transitional ore stockpiling at La Quinua and lower mill grade. Costs applicable to sales per ounce increased from the prior year quarter due to higher waste material mined and higher royalties and lower by-product credits.

2010 attributable gold production decreased 29% from the prior year due to mine sequencing resulting in increased waste mining, lower leach placement, transitional ore stockpiling at La Quinua and lower grade and recovery resulting in lower mill production. Leach tons placed decreased from 136 million tons in 2009, which was a record amount, to 59 million tons in 2010. Costs applicable to sales per ounce increased 39% from the prior year due to higher waste material mined, lower production, higher labor, diesel and maintenance costs, and higher workers' participation and royalty costs as a result of higher gold prices, partially offset by higher by-product credits.

La Zanja Attributable gold production was 16,000 ounces in the fourth quarter and 21,000 ounces in 2010. La Zanja achieved commercial production in the third quarter 2010.

2011 attributable gold production in South America is expected to be approximately 715,000-775,000 ounces, primarily due to lower leach production at Yanacocha. Costs applicable to sales are expected to increase in 2011 to approximately $500 to $550 per ounce, primarily due to lower gold production and higher contracted services and supplies.

    <<

    Asia Pacific

    >>

Boddington Attributable gold production was 206,000 ounces in the fourth quarter and 728,000 ounces in 2010. Attributable copper production was 15 million pounds in the fourth quarter and 58 million pounds in 2010. Costs applicable to sales were $624 ($512 on a by-product basis(4)) and $590 ($487 on a by-product basis(4)) per gold ounce and $2.06 and $1.86 per pound of copper, in the fourth quarter and 2010, respectively.

Fourth quarter 2010 production increased from the prior year quarter due to the commencement of commercial production in November 2009.

2010 production at Boddington was in line with revised guidance. Costs applicable to sales were higher than expected due to lower production and higher mining and mill maintenance costs.

2011 attributable gold production at Boddington is expected to be approximately 750,000-800,000 ounces at costs applicable to sales of approximately $580 to $620 per ounce on a co-product basis. Lower than expected gold production at Boddington is primarily attributable to lower gold ore grade and lower expected mill throughput, while higher operating costs are expected to result from lower than expected production volumes, higher mining costs, as well as higher contracted services and supplies. We continue to review our ore grade and processing models to identify opportunities to optimize and improve our future production and operating costs at Boddington.

Batu Hijau Attributable gold production was 88,000 ounces in the fourth quarter and 364,000 ounces in 2010. Attributable copper production was 59 million pounds in the fourth quarter and 269 million pounds in 2010. Costs applicable to sales were $243 and $237 per gold ounce and $0.81 and $0.69 per pound of copper on a co-product basis in the fourth quarter and 2010, respectively.

Fourth quarter copper production decreased from the prior year quarter due to lower mill throughput. Gold production increased from the prior year quarter due to unseasonably dry weather and continued mining in the bottom of Phase 5, resulting in higher gold grades which offset the lower mill throughput. Costs applicable to sales per ounce and per pound increased from the prior year quarter due to higher waste mining and milling costs, including higher labor costs.

2010 attributable copper and gold production increased 10% and 32%, respectively, in 2010 over the prior year due to higher grade and mill throughput as a result of mining at the bottom of Phase 5 and processing softer ore, partially offset by lower recovery. Unseasonably dry weather permitted additional mining in the bottom of Phase 5 during the fourth quarter. Beginning in 2011, we expect to process stockpiled ore until Phase 6 ore becomes the primary mill feed commencing in late 2013. Costs applicable to sales increased 11% per pound and per ounce due to higher waste mining, labor and diesel costs.

2011 attributable gold production for Batu Hijau is expected to be approximately 110,000-140,000 ounces, at costs applicable to sales of between $400 and $440 per ounce, while attributable copper production is expected to be approximately 120 to 140 million pounds, at costs applicable to sales of between $1.10 and $1.30 per pound. The decrease from 2010 production levels is primarily due to the processing of stockpiles as Phase 6 stripping continues.

    <<


    >>

Other Australia/New Zealand Attributable gold production was 259,000 ounces in the fourth quarter and 1.1 million ounces in 2010. Costs applicable to sales were $554 and $546 per ounce in the fourth quarter and 2010, respectively.

Fourth quarter production decreased from the prior year quarter due to lower mill grade at Jundee and Kalgoorlie, partially offset by higher throughput at Tanami. Costs applicable to sales per ounce increased from the prior year quarter due to lower production and a stronger Australian dollar.

2010 attributable gold production decreased 7% due to lower mill grade at Jundee and Waihi and lower mill grade and throughput at Tanami, partially offset by higher grade, throughput and recovery at Kalgoorlie. Costs applicable to sales per ounce increased 9% due to lower production and a stronger Australian dollar.

2011 attributable production for the Asia Pacific region is expected to be approximately 1.9 to 2.0 million ounces, primarily as a result of lower production at Batu Hijau. Costs applicable to sales are expected to increase to approximately $600 to $675 per ounce in 2011, primarily driven by lower Batu Hijau production. We expect attributable copper production for the Asia Pacific region of approximately 190 to 220 million pounds at costs applicable to sales of approximately $1.25 to $1.50 per pound in 2011.

    <<


    Africa

    >>

Attributable gold production was 137,000 and 545,000 ounces, respectively, during the fourth quarter and 2010. Costs applicable to sales were $433 and $450 per ounce for the fourth quarter and 2010, respectively,.

Fourth quarter production increased from the prior year quarter due to higher mill grade. Costs applicable to sales per ounce decreased from the prior year quarter due to higher production, partially offset by higher labor, power and royalty costs.

2010 attributable gold production increased due to higher grade ore mined at Apensu in 2010 and the commencement of production at Amoma in October 2010. Costs applicable to sales per ounce increased slightly due to higher labor, power, diesel and royalty costs, partially offset by higher production.

2011 attributable gold production for the Africa operations is expected to be approximately 550,000 to 590,000 ounces due to mining higher ore grade. Costs applicable to sales of approximately $485 to $535 per ounce are expected for 2011, primarily as a result of higher energy prices and higher labor and royalty costs.

    <<

    Capital Update

    >>

Consolidated capital expenditures were $1.4 billion in 2010, down from $1.8 billion in 2009, due to the completion of construction at Boddington. Approximately $319 million was spent on major projects in 2010, with the balance largely attributed to sustaining capital. The Company currently plans to spend $2.1 to $2.5 billion in attributable capital expenditures in 2011, or $2.7 to $3.0 billion on a consolidated basis. Approximately 40% of 2011 consolidated capital expenditures are expected to be related to major project initiatives, including further development of the Akyem project in Ghana, the Conga project in Peru, Hope Bay in Canada, and the Nevada project portfolio, while the remaining 60% is expected to be for growth and sustaining capital.

    <<


    >>

    <<
    2011 Outlook(5)--Our current outlook for 2011 is as follows:
    ------------------------------------------------------------
    >>

    <<
                           2011 Outlook    2011 Outlook
                            Attributable    Consolidated
    Region                   Production          CAS
                           (Kozs, Mlbs)    ($/oz, $/lb)
                           ------------    ------------
    Nevada                 1,800 - 1,900     $565 - $615
    La Herradura             180 - 200       $480 - $510
    Hope Bay                     -                     -
      North America        1,980 - 2,100     $560 - $600
      -------------        -------------     -----------
    Yanacocha                675 - 725       $500 - $550
    La Zanja                  40 - 50           n/a
    Conga                        -               -
      South America          715 - 775       $500 - $550
      -------------          ---------       -----------
    Boddington -
     Gold(a)                 750 - 800       $580 - $620
    Other Australia/NZ     1,000 - 1,050     $700 - $770
    Batu Hijau - Gold
     (b)                     110 - 140       $400 - $440
      Asia Pacific         1,860 - 1,990     $600 - $675
      ------------         -------------     -----------
    Ahafo                    550 - 590       $485 - $535
    Akyem                        -
      Africa                 550 - 590       $485 - $535
      ------                 ---------       -----------
    Corporate/Other
    ---------------
    Total Gold             5,100 - 5,300     $560 - $590
    ----------             -------------     -----------
    Boddington - Copper
     (a)                      70 - 80      $1.80 - $2.20
    Batu Hijau -
     Copper(b)               120 - 140     $1.10 - $1.30
    ----------------         ---------     -------------
    Total Copper             190 - 220     $1.25 - $1.50
    ------------             ---------     -------------



    >>

    <<
                           2011 Outlook      2011 Outlook
                           Consolidated      Attributable
    Region                    Capital           Capital
                           Expenditures      Expenditures
                           ------------      ------------
    Nevada                    $460 - $520       $460 - $520
    La Herradura                $70 - $80         $70 - $80
    Hope Bay                   $70 - $100        $70 - $100
      North America           $600 - $700       $600 - $700
      -------------           -----------       -----------
    Yanacocha                 $310 - $400       $160 - $200
    La Zanja                            -                 -
    Conga                     $550 - $700       $300 - $360
      South America         $900 - $1,100       $460 - $560
      -------------         -------------       -----------
    Boddington -
     Gold(a)                  $210 - $255       $210 - $255
    Other Australia/NZ        $230 - $265       $230 - $265
    Batu Hijau - Gold
     (b)                      $210 - $230        $95 - $110
      Asia Pacific            $650 - $750       $535 - $595
      ------------            -----------       -----------
    Ahafo                     $175 - $200       $175 - $200
    Akyem                     $300 - $375       $300 - $375
      Africa                  $450 - $545       $450 - $545
      ------                  -----------       -----------
    Corporate/Other             $30 - $40         $30 - $40
    ---------------
    Total Gold            $2,700 - $3,000   $2,100 - $2,500
    ----------            ---------------   ---------------
    Boddington - Copper
     (a)                                -                 -
    Batu Hijau -
     Copper(b)                          -                 -
    ----------------                  ---               ---
    Total Copper
    ------------
    >>

    <<
    (a) Boddington shown on a co-product basis.
    (b) Assumes Batu Hijau economic interest of 48.5% for 2011


    >>

    <<
    Description                    2011 Outlook
                                    Consolidated
                                      Expenses
                                       ($M)
                                       ----
    General & Administrative            $190 - $200
    Interest Expense                    $235 - $245
    DD&A                            $1,025 - $1,035
    Exploration Expense                 $335 - $345
    Advanced Projects & R&D             $405 - $415
    Tax Rate                              28% - 32%
    --------                              ---------
    Assumptions
    -----------
    Gold Price ($/ounce)                     $1,300
    Copper Price ($/pound)                    $4.00
    Oil Price ($/barrel)                        $90
    Australian Dollar
     Exchange Rate                             0.95
    -----------------                          ----



    >>

    <<
                        See reconciliation to GAAP net income
    (1)                 on page 12.
                        Gold operating margin calculated as
                        average realized gold price per
                        ounce, less gold cost applicable to
    (2)                 sales per ounce.
                        Growth in gold operating margin
                        calculated as the percentage change
                        in gold operating margin per ounce
    (3)                 year over year
                        See by-product reconciliation on page
    (4)                 13.
                        Outlook referenced in the table above
                        and elsewhere in this release is
                        based upon management's good faith
                        estimates as of February 24, 2011 and
                        are considered "forward-looking
                        statements."   References to outlook
                        guidance are based on current mine
                        plans, assumptions noted above and
                        current geotechnical, metallurgical,
                        hydrological and other physical
                        conditions, which are subject to risk
                        and uncertainty as discussed in the
    (5)                 "Cautionary Statement" on page 14.




    >>

Statements of Consolidated Income

    <<
                                                    Three Months Ended
                                                       December 31,
                                                       ------------
                                                     2010            2009
                                                     ----            ----
                                              (in millions, except per share)
                                                       (unaudited)
    Sales                                          $2,548          $2,518
    >>

    <<
    Costs and expenses
      Costs applicable to sales (1)                   877             836
      Amortization                                    248             240
      Reclamation and remediation                      21              25
      Exploration                                      55              40
      Advanced projects, research and
       development                                     67              35
      General and administrative                       45              41
      Write-down of property, plant and mine
       development                                      1               3
      Other expense, net                               66             112
                                                      ---             ---
                                                    1,380           1,332
                                                    -----           -----
    Other income (expense)
      Other income, net                                12              45
      Interest expense, net                           (69)            (55)
                                                      ---             ---
                                                      (57)            (10)
                                                      ---             ---
    Income from continuing operations before
     income tax and
      other items                                   1,111           1,176
    Income and mining tax expense                     (71)           (307)
    Equity income (loss) of affiliates                 10              (2)
                                                      ---             ---
    Income from continuing operations               1,050             867
    Income (loss) from discontinued
     operations                                       (28)             (2)
                                                      ---             ---
    Net income                                      1,022             865
    Net income attributable to
     noncontrolling interests                        (210)           (307)
                                                     ----            ----
    Net income attributable to Newmont
     stockholders                                    $812            $558
                                                     ====            ====
    >>

    <<
    Net income attributable to Newmont
     stockholders:
        Continuing operations                         840             560
        Discontinued operations                       (28)             (2)
                                                      ---             ---
                                                      812             558
                                                      ===             ===
    Income per common share
      Basic:
        Continuing operations                       $1.71           $1.14
        Discontinued operations                     (0.06)              -
                                                    -----             ---
                                                    $1.65           $1.14
                                                    =====           =====
      Diluted:
        Continuing operations                       $1.67           $1.13
        Discontinued operations                     (0.06)              -
                                                    -----             ---
                                                    $1.61           $1.13
                                                    =====           =====
    >>

    <<
    Cash dividends declared per common share



    >>

    <<
                                                        Years Ended
                                                       December 31,
                                                       ------------
                                                     2010             2009
                                                     ----             ----
                                              (in millions, except per share)
                                                         (audited)
    Sales                                          $9,540           $7,705
    >>

    <<
    Costs and expenses
      Costs applicable to sales (1)                 3,484            3,008
      Amortization                                    945              806
      Reclamation and remediation                      65               59
      Exploration                                     218              187
      Advanced projects, research and
       development                                    216              135
      General and administrative                      178              159
      Write-down of property, plant and mine
       development                                      6                7
      Other expense, net                              261              358
                                                      ---              ---
                                                    5,373            4,719
                                                    -----            -----
    Other income (expense)
      Other income, net                               109               88
      Interest expense, net                          (279)            (120)
                                                     ----             ----
                                                     (170)             (32)
                                                     ----              ---
    Income from continuing operations before
     income tax and
      other items                                   3,997            2,954
    Income and mining tax expense                    (856)            (829)
    Equity income (loss) of affiliates                  3              (16)
                                                      ---              ---
    Income from continuing operations               3,144            2,109
    Income (loss) from discontinued
     operations                                       (28)             (16)
                                                      ---              ---
    Net income                                      3,116            2,093
    Net income attributable to
     noncontrolling interests                        (839)            (796)
                                                     ----             ----
    Net income attributable to Newmont
     stockholders                                  $2,277           $1,297
                                                   ======           ======
    >>

    <<
    Net income attributable to Newmont
     stockholders:
        Continuing operations                      $2,305           $1,308
        Discontinued operations                       (28)             (11)
                                                      ---              ---
                                                   $2,277           $1,297
                                                   ======           ======
    Income per common share
      Basic:
        Continuing operations                       $4.69            $2.68
        Discontinued operations                     (0.06)           (0.02)
                                                    -----            -----
                                                    $4.63            $2.66
                                                    =====            =====
      Diluted:
        Continuing operations                       $4.61            $2.68
        Discontinued operations                     (0.06)           (0.02)
                                                    -----            -----
                                                    $4.55            $2.66
                                                    =====            =====
    >>

    <<
    Cash dividends declared per common share        $0.50            $0.40





    >>

Statements of Consolidated Cash Flow

    <<
                                                    Three Months Ended
                                                       December 31,
                                                      ------------------
                                                   2010             2009
                                                   ----             ----
                                                      (in millions)
                                                    (unaudited)
    Operating activities:
        Net income                               $1,022             $865
        Adjustments:
         Amortization                               248              240
         Stock based compensation and other
          benefits                                   16               13
         Reclamation and remediation                 21               25
         Revaluation of contingent consideration      2               23
         Loss (Income) from discontinued
          operations                                 28                2
         Write-down of property, plant and mine
          development                                 1                4
         Impairment of marketable securities          1                -
         Deferred income taxes                     (328)              (6)
         Gain on asset sales, net                   (10)             (21)
         Other operating adjustments and write-
          downs                                      12               23
         Net change in operating assets and
          liabilities                              (168)            (200)
                                                   ----             ----
    Net cash provided from continuing
     operations                                     845              968
    Net cash provided from (used in)
     discontinued operations                          -               30
                                                    ---              ---
    Net cash provided from operations               845              998
                                                    ---              ---
    Investing activities:
        Additions to property, plant and mine
         development                               (430)            (455)
        Acquisitions, net                            (2)            (241)
        Proceeds from sale of marketable debt
         and equity securities                        2                7
        Purchases of marketable debt and equity
         securities                                 (19)              (5)
        Proceeds from sale of other assets            3               15
        Other                                        29              (14)
                                                    ---              ---
    Net cash used in investing activities          (417)            (693)
                                                   ----             ----
    Financing activities:
        Proceeds from debt, net                       -               (3)
        Repayment of debt                          (156)            (127)
        Proceeds from stock issuance, net             4               30
        Sale of subsidiary shares to
         noncontrolling interests                     -              638
        Acquisition of subsidiary shares from
         noncontrolling interests                    (1)            (287)
        Dividends paid to noncontrolling
         interests                                 (102)            (279)
        Dividends paid to common stockholders       (74)             (49)
        Change in restricted cash and other          (2)             (40)
                                                    ---              ---
    Net cash provided from (used in)
     financing activities of continuing
     operations                                    (331)            (117)
    Net cash used in financing activities of
     discontinued operations                          -                -
                                                    ---              ---
    Net cash provided from (used in)
     financing activities                          (331)            (117)
    Effect of exchange rate changes on cash           8                5
                                                    ---              ---
    Net change in cash and cash equivalents         105              193
    Cash and cash equivalents at beginning
     of period                                    3,951            3,022
                                                  -----            -----
    Cash and cash equivalents at end of
     period                                      $4,056           $3,215
                                                 ======           ======



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    <<
                                          Years Ended December 31,
                                          ------------------------
                                               2010                 2009
                                               ----                 ----
                                            (in millions)
                                                  (audited)
    Operating activities:
        Net income                           $3,116               $2,093
        Adjustments:
         Amortization                           945                  806
         Stock based compensation and
          other benefits                         70                   57
         Reclamation and remediation             65                   59
         Revaluation of contingent
          consideration                           2                   23
         Loss (Income) from discontinued
          operations                             28                   16
         Write-down of property, plant
          and mine development                    6                    7
         Impairment of marketable
          securities                              1                    6
         Deferred income taxes                 (380)                   1
         Gain on asset sales, net               (64)                 (24)
         Other operating adjustments and
          write-downs                           145                   97
         Net change in operating assets
          and liabilities                      (754)                (227)
                                               ----                 ----
    Net cash provided from continuing
     operations                               3,180                2,914
    Net cash provided from (used in)
     discontinued operations                    (13)                  33
                                                ---                  ---
    >>

    <<
    Net cash provided from operations         3,167                2,947
                                              -----                -----
    Investing activities:
        Additions to property, plant and
         mine development                    (1,402)              (1,769)
        Acquisitions, net                        (4)              (1,007)
        Proceeds from sale of marketable
         debt and equity securities               3                   17
        Purchases of marketable debt and
         equity securities                      (28)                  (5)
        Proceeds from sale of other
         assets                                  56                   18
        Other                                   (44)                 (35)
                                                ---                  ---
    Net cash used in investing
     activities                              (1,419)              (2,781)
                                             ------               ------
    Financing activities:
        Proceeds from debt, net                   -                4,299
        Repayment of debt                      (430)              (2,731)
    >>

    <<
        Proceeds from stock issuance, net        60                1,278
        Sale of subsidiary shares to
         noncontrolling interests               229                  638
        Acquisition of subsidiary shares
         from noncontrolling interests         (110)                (287)
        Dividends paid to noncontrolling
         interests                             (462)                (394)
        Dividends paid to common
         stockholders                          (246)                (196)
        Change in restricted cash and
         other                                   44                  (35)
                                                ---                  ---
    Net cash provided from (used in)
     financing activities of
     continuing operations                     (915)               2,572
    Net cash used in financing
     activities of discontinued
     operations                                   -                   (2)
                                                ---                  ---
    Net cash provided from (used in)
     financing activities                      (915)               2,570
    Effect of exchange rate changes
     on cash                                      8                   44
                                                ---                  ---
    Net change in cash and cash
     equivalents                                841                2,780
    Cash and cash equivalents at
     beginning of period                      3,215                  435
                                              -----                  ---
    Cash and cash equivalents at end
     of period                               $4,056               $3,215
                                             ======               ======


    >>

Consolidated Balance Sheets

    <<
                                            At December           At December
                                                31,                 31,
                                                   2010                2009
                                                   ----                ----
                                                     (in millions)
          ASSETS
    Cash and cash equivalents                    $4,056              $3,215
    Trade receivables                               582                 438
    Accounts receivable                              88                 102
    Investments                                     113                  56
    Inventories                                     658                 493
    Stockpiles and ore on leach pads                617                 403
    Deferred income tax assets                      177                 215
    Other current assets                            962                 900
                                                    ---                 ---
      Current assets                              7,253               5,822
    Property, plant and mine development,
     net                                         12,907              12,370
    Investment                                    1,568               1,186
    Stockpiles and ore on leach pads              1,757               1,502
    Deferred income tax assets                    1,437                 937
    Other long-term assets                          741                 482
      Total assets                              $25,663             $22,299
                                                =======             =======
          LIABILITIES
    Debt                                           $259                $157
    Accounts payable                                427                 396
    Employee-related benefits                       288                 250
    Income and mining taxes                         355                 200
    Other current liabilities                     1,418               1,317
                                                  -----               -----
      Current liabilities                         2,747               2,320
    Debt                                          4,182               4,652
    Reclamation and remediation liabilities         984                 805
    Deferred income tax liabilities               1,488               1,341
    Employee-related benefits                       325                 381
    Other long-term liabilities                     221                 187
      Total liabilities                           9,947               9,686
                                                  -----               -----
          EQUITY
    Common stock                                    778                 770
    Additional paid-in capital                    8,279               8,158
    Accumulated other comprehensive income        1,108                 626
    Retained earnings                             3,180               1,149
                                                  -----               -----
    Newmont stockholders' equity                 13,345              10,703
    Noncontrolling interests                      2,371               1,910
                                                  -----               -----
      Total equity                               15,716              12,613
                                                 ------              ------
      Total liabilities and equity              $25,663             $22,299
                                                =======             =======




    >>

Production Statistics

    <<
                                      Three Months
                                      Ended December        Years Ended
                                           31,            December 31,
                                    ---------------       -----------
                                   2010         2009  2010         2009
                                    ---          ---    --           --
     Gold
     ----
     Consolidated ounces produced
      (thousands):
       North America
        Nevada                      429          565 1,735        1,986
        La Herradura                 49           34   174          113
                                    478          599 1,909        2,099
                                    ---          --- -----        -----
       South America
        Yanacocha                   331          499 1,462        2,058
    >>

    <<
       Asia Pacific
         Boddington                 206          118   728          122
         Batu Hijau                 183          173   737          560
         Kalgoorlie                  89           96   377          337
         Jundee                      68          107   335          411
         Tanami                      67           54   250          289
         Waihi                       30           32   108          113
                                    643          580 2,535        1,832
                                    ---          --- -----        -----
     Africa
        Ahafo                       137          123   545          532
                                  1,589        1,801 6,451        6,521
                                  =====        ===== =====        =====
    >>

    <<
     Copper
     ------
     Consolidated pounds produced
      (millions):
       Asia Pacific
          Boddington                 15            9    58           10
          Batu Hijau                122          158   542          494
                                    137          167   600          504
                                    ===          ===   ===          ===
    >>

    <<
     Gold
     ----
     Attributable ounces produced
      (thousands):
       North America
        Nevada                      429          565 1,735        1,986
        La Herradura                 49           34   174          113
                                    478          599 1,909        2,099
                                    ---          --- -----        -----
       South America
        Yanacocha                   170          256   750        1,057
        Other South America
         attributable interests      16            -    21            -
                                    186          256   771        1,057
                                    ---          ---   ---        -----
    >>

    <<
     Asia Pacific
         Boddington                 206          118   728          122
         Batu Hijau                  88           71   364          245
         Kalgoorlie                  89           96   377          337
         Jundee                      68          107   335          411
         Tanami                      67           54   250          289
         Waihi                       30           32   108          113
         Other Asia Pacific
          attributable interests      5            -     5            -
                                    553          478 2,167        1,517
                                    ---          --- -----        -----
       Africa
        Ahafo                       137          123   545          532
                                  1,354        1,456 5,392        5,205
                                  -----        ----- -----        -----
    >>

    <<
     Discontinued Operations
        Kori Kollo                    -            -     -           32
                                  1,354        1,456 5,392        5,237
                                  =====        ===== =====        =====
    >>

    <<
     Copper
     ------
     Attributable pounds produced
      (millions):
       Asia Pacific
          Boddington                 15            9    58           10
          Batu Hijau                 59           66   269          217
                                     74           75   327          227
                                    ===          ===   ===          ===





    >>

CAS and Capital Expenditures

    <<
                                      Three Months Ended December
                                                  31,
                                     ---------------------------
                                           2010             2009
                                            ---              ---
     Gold
     ----
        Costs Applicable to Sales
         ($/ounce) (1)
        North America
             Nevada                        $520             $476
             La Herradura                   434              351
                                            ---              ---
                                            511              469
                                            ---              ---
            South America
             Yanacocha                      559              303
    >>

    <<
            Asia Pacific
             Boddington                     624              468
             Batu Hijau                     243              175
             Kalgoorlie                     607              609
             Jundee                         412              306
             Tanami                         630              792
             Waihi                          560              540
                                            505              408
                                            ---              ---
            Africa
             Ahafo                          433              506
                                            ---              ---
       Average                             $512             $406
                                           ====             ====
    >>

    <<
     Copper
     ------
        Costs Applicable to Sales
         ($/pound) (1)
        Asia Pacific
             Boddington                   $2.06            $1.77
             Batu Hijau                    0.81             0.58
       Average                            $0.95            $0.64
                                          =====            =====
    >>

    <<
                                    Three Months Ended December
                                                  31,
                                    ----------------------------
                                           2010             2009
                                            ---              ---
     Consolidated Capital
      Expenditures ($ million)
       North America
        Nevada                              $98              $51
        Hope Bay                             27                1
        La Herradura                          8               20
                                            133               72
                                            ---              ---
       South America
        Yanacocha                            58               41
        Conga                                48               11
                                            106               52
                                            ---              ---
    >>

    <<
       Asia Pacific
        Boddington                           40              132
        Batu Hijau                           19               14
        Kalgoorlie                           11                5
        Jundee                               14                8
        Tanami                               35               32
        Waihi                                 5                2
        Other Asia Pacific                    6                1
                                            130              194
                                            ---              ---
       Africa
        Ahafo                                29               33
        Akyem                                21                6
                                             50               39
                                            ---              ---
        Corporate and Other                  11                4
                                            ---              ---
     Total - Accrual Basis                  430              361
                                            ---              ---
    >>

Change in Capital Accrual - 94

    <<
     Total - Cash Basis                    $430             $455
                                           ====             ====



    >>

    <<
                                       Years Ended December 31,
                                       ------------------------
                                          2010             2009
                                           ---              ---
     Gold
     ----
        Costs Applicable to Sales
         ($/ounce) (1)
        North America
             Nevada                       $565             $509
             La Herradura                  420              372
                                           ---              ---
                                           551              501
                                           ---              ---
            South America
             Yanacocha                     431              310
    >>

    <<
            Asia Pacific
             Boddington                    590              468
             Batu Hijau                    237              214
             Kalgoorlie                    558              624
             Jundee                        393              331
             Tanami                        689              599
             Waihi                         647              481
                                           474              410
                                           ---              ---
            Africa
             Ahafo                         450              444
                                           ---              ---
       Average                            $485             $411
                                          ====             ====
    >>

    <<
     Copper
     ------
        Costs Applicable to Sales
         ($/pound) (1)
        Asia Pacific
             Boddington                  $1.86            $1.77
             Batu Hijau                   0.69             0.62
       Average                           $0.80            $0.64
                                         =====            =====
    >>

    <<
                                    Years Ended December 31,
                                    ------------------------
                                          2010             2009
                                           ---              ---
     Consolidated Capital
      Expenditures ($ million)
       North America
        Nevada                            $298             $205
        Hope Bay                           115                5
        La Herradura                        41               54
                                           454              264
                                           ---              ---
       South America
        Yanacocha                          167              119
        Conga                              134               27
                                           301              146
                                           ---              ---
    >>

    <<
       Asia Pacific
        Boddington                         146            1,093
        Batu Hijau                          67               44
        Kalgoorlie                          25               11
        Jundee                              44               29
        Tanami                              94               74
        Waihi                               13                8
        Other Asia Pacific                  17                3
                                           406            1,262
                                           ---            -----
       Africa
        Ahafo                              109               75
        Akyem                               70               10
                                           179               85
                                           ---              ---
        Corporate and Other                 34               16
     Total - Accrual Basis               1,374            1,773
                                         -----            -----
    >>

Change in Capital Accrual 28 (4)

    <<
     Total - Cash Basis                 $1,402           $1,769
                                        ======           ======
    >>

    <<
    (1)     Excludes Amortization and Reclamation and remediation.



    Supplemental Information

    Non-GAAP Financial Measures

    >>

Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by generally accepted accounting principles ("GAAP"). These measures should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP.

    <<

    Reconciliation of Adjusted Net Income to GAAP Net Income

    >>

Management of the Company uses the non-GAAP financial measure Adjusted net income to evaluate the Company's operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income allows investors and analysts to compare the results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items, income or loss from discontinued operations and the permanent impairment of assets, including marketable securities and goodwill. Management's determination of the components of Adjusted net income are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts.

Net income attributable to Newmont stockholders is reconciled to adjusted net income as follows:

    <<
                                        Three months
                                            ended            Years ended
                                        December 31,        December 31,
                                        ------------        ------------
     (in millions except per share,
      after-tax)                     2010        2009    2010     2009
     ------------------------------  ----        ----    ----     ----
     GAAP Net income (1)             $812        $558  $2,277   $1,297
     Income tax planning and other,
      net                            (264)          -    (391)       -
     Net gain on asset sales           (4)        (14)    (39)     (16)
     PTNNT community contribution       -           -      13        -
     Impairment of assets               1           -       4        8
     Boddington acquisition costs       -           -       -       44
     Boddington contingent
      consideration                     1          15       1       15
     Loss from discontinued
      operations (1)                   28           2      28       11
     ----------------------           ---         ---     ---      ---
     Adjusted net income             $574        $561  $1,893   $1,359
     ===================             ====        ====  ======   ======
     Adjusted net income per share,
      basic                         $1.16       $1.14   $3.85    $2.79
     ============================== =====       =====   =====    =====
    >>

    <<
       (1) Attributable to Newmont stockholders.


    >>

Reconciliation of Co-Product Costs Applicable to Sales to By-Product Costs Applicable to Sales

Sales and Costs applicable to sales for Boddington are presented in the Condensed Consolidated Financial Statements for both gold and copper due to the significant portion of copper production (approximately 15-20% of revenue based on the latest life-of-mine plan and metal price assumptions). The co-product method allocates costs applicable to sales to each metal based on specifically identifiable costs where applicable and on a relative proportion of sales values for other costs. Management also assesses the performance of the Boddington mine on a by-product basis due to the majority of sales being derived from gold and to determine contingent consideration payments to AngloGold. The by-product method deducts copper sales from costs applicable to sales as shown in the following table:

    <<



    >>

    <<
                        Three months ended             Years ended
                         December 31, 2010          December 31, 2010
                         -----------------          -----------------
                      Boddington   Consolidated  Boddington   Consolidated
                      ----------   ------------  ----------   ------------
     ($ millions)
     Co-product
      costs
      applicable to
      sales - gold          $117           $777        $400         $3,055
    >>

    <<
     Less copper
      margin:
     Sales - copper           45            475         162          1,848
     Costs
      applicable to
      sales -copper          (24)          (100)        (93)          (429)
        Copper margin         21            375          69          1,419
        -------------        ---            ---         ---          -----
    >>

    <<
     By-product
      costs
      applicable to
      sales - gold           $96           $402        $331         $1,636
     ==============          ===           ====        ====         ======
    >>

    <<
     Costs
      applicable to
      sales -gold
      (per ounce)
        Co-product          $624           $512        $590           $485
        By-product          $512           $265        $487           $260
    >>

    <<
     Gold ounces
      sold
      (thousands)            187          1,518         679          6,296
     ------------            ---          -----         ---          -----


    >>

To view complete financial disclosure, including regional mine statistics, Results of Consolidated Operations, Liquidity and Capital Resources, Management's Discussion & Analysis, the Form 10-K, and a complete outline of the 2011 Operating and Financial guidance by region, please see www.newmont.com.

The Company's fourth quarter and 2010 earnings and exploration update conference call and web cast presentation will be held on Thursday, February 24, 2011 beginning at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time).

To participate:

    <<
           Dial-In Number    888.566.1822
            Intl Dial-In
            Number           312.470.7119
           Leader            John Seaberg
           Passcode          Newmont
           Replay Number     800.879.5507
            Intl Replay
            Number           203.369.3989
           Replay Passcode              2011


    >>

The conference call also will be simultaneously carried on our web site at www.newmont.com under Investor Relations/Presentations and will be archived there for a limited time.

    <<

    Cautionary Statement

    >>

This release 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 which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future mineral production and sales; (ii) estimates of future costs applicable to sales; (iii) estimates of future capital expenditures; and (iv) expectations regarding the development, growth and exploration potential of the Company's projects, including, without limitation, Deep Post, Gold Quarry, Twin Creeks, Carlin, North Lantern, La Herradura, Yanacocha, La Zanja, Boddington, Batu Hijau, Jundee, Kalgoorlie, Waihi, Tanami, Apensu, Amoma, Akyem, Conga and Hope Bay. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company's projects being consistent with current expectations and mine plans; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; and (vii) the accuracy of our current mineral reserve and mineral resource estimates. 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, such 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 the "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 2010 Annual Report on Form 10-K, filed on February 24, 2011, with the Securities and Exchange Commission, as well as the Company's other SEC filings. The Company does not undertake any obligation to release publicly revisions to any "forward-looking statement," including, without limitation, outlook, 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. Investors should not assume that any lack of update to a previously issued "forward-looking statement" constitutes a reaffirmation of that statement. Continued reliance on "forward-looking statements" is at investors' own risk.

    <<






    >>

SOURCE Newmont Mining Corporation

For further information: Media, Omar Jabara, +1-303-837-5114, omar.jabara@newmont.com, or Investors John Seaberg, +1-303-837-5743, john.seaberg@newmont.com, or Karli Anderson, +1-303-837-6049, karli.anderson@newmont.com, or Monica Brisnehan, +1-303-837-5836, monica.brisnehan@newmont.com, all of Newmont Mining Corporation Web Site: http://www.newmont.com


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