Newmont Reports Third Quarter Net Income of $397 Million ($0.88 Per Share)



    DENVER, Oct. 31 /CNW/ -- Newmont Mining Corporation (NYSE:   NEM) today
announced third quarter financial and operating results. For the quarter, the
Company reported net income of $397 million ($0.88 per share), compared with
net income of $198 million ($0.44 per share) for the third quarter of 2006.
Net income during the third quarter of 2007 benefited from a change in the
valuation allowance on deferred tax assets associated with foreign tax credits
($84 million) and the Zarafshan-Newmont Joint Venture settlement ($54 million
after-tax).
    Richard O'Brien, President and Chief Executive Officer, said, "With the
benefit of higher metal prices as well as a strong performance from the
majority of our operations, we earned $0.88 per share for the quarter, a 200%
increase over the year ago quarter, and generated approximately $520 million
in cash from continuing operations. As we maintain our focus on operational
execution, we continue to address the issues in Nevada, including challenges
at Phoenix and the slower than anticipated reopening of our Midas mine. With
three months remaining in the year, we are narrowing our outlook for equity
gold sales to between 5.2 and 5.4 million ounces at costs applicable to sales
of between $400 and $430 per ounce for 2007. Additionally, we continue to make
substantial progress on our development projects, including Boddington in
Australia, the gold mill at Yanacocha and the power plant in Nevada.
    And earlier this month, we announced an offer to acquire all of the
outstanding common shares of Miramar Mining Corporation in a friendly
transaction, giving us the opportunity to establish a new, core mining
district in the Nunavut Territory of Canada with tremendous exploration
potential. With these efforts, we continue to work toward achieving our goal
of providing our shareholders with a sustainable and profitable production
base, while optimizing leverage to the gold price."


    
    Financial ($ millions,         Q3 2007    Q3 2006   YTD 2007   YTD 2006
             except per share)
    Revenues                       $ 1,646    $ 1,102    $ 4,204    $ 3,527
    Income (loss) from continuing
     operations                      $ 325       $ 42      $ (45)     $ 364
    Income (loss) from continuing
     operations per share           $ 0.72     $ 0.09    $ (0.10)    $ 0.81
    Net income (loss)                $ 397      $ 198   $ (1,597)     $ 568
    Net income (loss) per share     $ 0.88     $ 0.44    $ (3.54)    $ 1.26
    

    
    Operating                      Q3 2007    Q3 2006   YTD 2007   YTD 2006
    Consolidated gold sales
     (000 ounces) (1)                1,614      1,698      4,667      5,350
    Equity gold sales
     (000 ounces) (1), (2)           1,326      1,379      3,916      4,155
    Average realized gold
     price ($/ounce)                 $ 681      $ 611      $ 665      $ 588
    Costs applicable to
     sales ($/ounce) (3)             $ 388      $ 318      $ 414      $ 297
    Net cash provided from
     (used in) continuing operations $ 521      $ 201     $ (103)     $ 723
    Capital expenditures ($ million) $ 449      $ 404    $ 1,162    $ 1,104
    

    
    (1) Includes sales in 2006 from Phoenix and Leeville start-up activities
        which are not included in Revenue, Costs applicable to sales and
        Depreciation, depletion and amortization per ounce calculations prior
        to commencing operations on October 1, 2006 and October 14, 2006,
        respectively.
    (2) Includes sales from Holloway and Zarafshan discontinued operations for
        the nine months ended September 30, 2006.
    (3) Excludes depreciation, depletion and amortization, loss on settlement
        of price-capped forward sales contracts and Midas redevelopment.
    
    The Company generated net cash from continuing operations of $521 million
in the third quarter of 2007, compared to net cash provided from continuing
operations of $201 million in the year ago quarter. The Company used net cash
in continuing operations of $103 million for the nine months ended September
30, 2007 compared to net cash provided from continuing operations of $723
million for the nine months ended September 30, 2006. Cash flow used in
continuing operations during the first nine months of 2007 was negatively
impacted by the settlement of the price-capped forward sales contracts for
$578 million, the settlement of pre-acquisition Australia income taxes of
Normandy for $276 million and the final settlement of copper collar contracts
for $174 million.


    REGIONAL HIGHLIGHTS AND 2007 OUTLOOK

    NEVADA                     Q3 2007   Q3 2006   YTD 2007   YTD 2006

    
    Consolidated gold sales
     (000 ounces) (1)              583       569      1,674      1,647
    Equity gold sales
     (000 ounces) (1)              583       555      1,674      1,540
    Costs applicable to
     sales ($/ounce) (2)         $ 426     $ 428      $ 467      $ 425
    Capital expenditures
     ($ million)                 $ 176     $ 211      $ 453      $ 501
    

    
    (1) Includes sales in 2006 from Phoenix and Leeville start-up activities
        which are not included in Revenue, Costs applicable to sales and
        Depreciation, depletion and amortization per ounce calculations prior
        to commencing operations on October 1, 2006 and October 14, 2006,
        respectively. Revenues and costs during start-up activities are
        included in Other income, net.
    (2) Excludes Midas redevelopment.
    Nevada Operating Performance and Outlook
    
    Equity gold sales in Nevada increased 5% in the third quarter of 2007 to
583,000 ounces from 555,000 ounces in the year ago quarter. Gold sales
increased as both Leeville and Phoenix were in commercial production for the
entire third quarter of 2007 compared to the year ago quarter, offset by the
suspension of operations at Midas in June 2007 and the completion of mining at
Lone Tree in 2006.
    Open pit ore mined increased 22% to 11.0 million tons in the third
quarter of 2007, up from 9.0 million tons in the year ago quarter, primarily
due to commercial production at Phoenix. Underground ore mined increased 4% in
the third quarter of 2007 due to commencement of commercial production at
Leeville. Ore milled increased 67% to 6.5 million tons from 3.9 million tons
in the year ago quarter, while milled ore grade decreased 30% during the same
period, both driven by the processing of lower grade ore from Phoenix. Ore
placed on leach pads decreased 20% in the third quarter of 2007 compared to
the year ago quarter, primarily as a result of mine sequencing at Gold Quarry
and the completion of mining at Lone Tree. Leach ore grade increased 36% from
the year ago quarter due to recent access to higher grade ore at Twin Creeks.
The Lone Tree mill continued to process during the third quarter, with ore
hauled from Twin Creeks, and is expected to continue to process ore for the
remainder of 2007.
    Based on the results of the first nine months of 2007, the Company has
narrowed the expected range for equity gold sales in Nevada from between 2.3
and 2.6 million ounces to between 2.3 and 2.4 million ounces for 2007. This
range primarily reflects the impact of continuing challenges at Phoenix and
the suspension of operations at Midas.
    On October 11, the Mine Safety and Health Administration (MSHA) lifted
the restrictive order that required Midas to halt mining activities in June
2007. As a result, limited mining activities at Midas have resumed, and the
Company expects Midas to ramp-up to historical production levels by early
2008.
    Costs applicable to sales decreased slightly in the third quarter of 2007
to $426 per ounce from $428 per ounce in the year ago quarter. Unit costs
remained steady as the impact of higher cost production at Phoenix and the
suspension of lower cost operations at Midas were offset by lower surface
mining costs. Based on the costs applicable to sales incurred through the end
of the third quarter of 2007, continued oil price escalation and lower than
expected production from Phoenix and Midas, the Company has increased Nevada's
cost applicable to sales outlook for the year from between $400 and $440 per
ounce to between $430 and $460 per ounce.
    
    Phoenix Update
    
    The focus at Phoenix during the third quarter of 2007 was continued
progress on optimization projects. The in-fill drill program has drilled one-
third of the overall planned footage, with 46 of the 183 planned drill holes
completed. Mining rates continued to improve, with September providing the
highest monthly production to date. The sustainable improvements in
productivity were driven largely by favorable improvements in rock
fragmentation as well as new haul trucks being added to the fleet during the
third quarter. Mill capacity utilization exceeded 90% during the third quarter
of 2007. Additionally, the new crusher remains on schedule for start-up by
mid-2008 and was approximately 21% complete at the end of the third quarter.
Phoenix produced 46,000 ounces at costs applicable to sales of $605 per ounce
and 133,000 ounces at costs applicable to sales of $743 per ounce for the
three and nine NEWMONT - Q3 2007 RESULTS (October 31, 2007) Page 3 of 21
months ended September 30, 2007, respectively. The Company expects a final
optimization plan for Phoenix by mid-2008.
    
    Nevada Capital Projects
    
    Capital expenditures in Nevada were $176 million and $453 million for the
three and nine months ended September 30, 2007, respectively. The Company has
increased its expected range for 2007 from between $560 and $630 million to
between $620 and $650 million. The remaining spending during the fourth
quarter of 2007 primarily relates to the construction of the power plant.
Construction of the 200 megawatt coal-fired power plant was approximately 82%
complete at the end of the third quarter and remains on schedule for
completion in the first half of 2008. Major milestones met during the third
quarter of 2007 include successful boiler hydro-testing and the first coal
delivery. Capital costs for the project are expected to be towards the higher
end of the previous outlook 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 approximately $25 per ounce.


    
    YANACOCHA                    Q3 2007  Q3 2006   YTD 2007   YTD 2006
    Consolidated gold sales
     (000 ounces)                    360      578      1,127      2,133
    Equity gold sales
     (000 ounces)                    185      297        579      1,095
    Costs applicable to sales
     ($/ounce)                     $ 358    $ 210      $ 357      $ 183
    Capital expenditures
     ($ million)                    $ 67     $ 61      $ 181      $ 174
    Yanacocha Operating Performance and Outlook
    
    Equity gold sales at Yanacocha decreased in the third quarter of 2007 to
185,000 ounces from 297,000 ounces in the year ago quarter, in line with
expectations. Gold production in the third quarter of 2006 benefited from
higher grade and tons placed on leach pads during the first half of 2006 as
compared to 2007, resulting in lower production in the third quarter of 2007.
Ore mined decreased 7% to 28.7 million tons in the third quarter of 2007 from
31.0 million tons in the year ago quarter, while leach ore grade increased by
17% in the third quarter of 2007 compared to the year ago quarter. The Company
continues to expect equity gold sales of between 775,000 and 825,000 ounces
for 2007.
    Costs applicable to sales increased in the third quarter of 2007 to $358
per ounce from $210 per ounce in the year ago quarter. The increase was
primarily due to lower production, which impacted unit costs by approximately
$120 per ounce, as well as higher labor, diesel, and mine maintenance costs.
The Company continues to expect costs applicable to sales for the year toward
the lower end of the range of $340 to $360 per ounce.
    
    Yanacocha Capital Projects
    
    Consolidated capital expenditures at Yanacocha were $67 million and $181
million for the three and nine months ended September 30, 2007, respectively.
The Company has reduced Yanacocha's expected consolidated capital expenditures
for the year from between $310 and $340 million to between $280 and $300
million. Progress on the gold mill continues as expected, with construction
approximately 85% complete at the end of the third quarter. Major milestones
of final mill delivery and commencement of operational training were met
during the quarter. The Company continues to anticipate commercial production
in the first half of 2008. Capital costs on the project are expected to remain
in-line with the previous outlook of between $250 and $270 million. Once
complete, the gold mill is expected to enhance recovery of complex ores,
improve financial returns and extend the operating life at Yanacocha.


    
    AUSTRALIA/NEW ZEALAND          Q3 2007   Q3 2006   YTD 2007   YTD 2006
    Consolidated gold sales
     (000 ounces)                      319       355        989      1,004
    Equity gold sales (000 ounces)     319       355        989      1,004
    Costs applicable to sales
     ($/ounce)                       $ 480     $ 376      $ 485      $ 383
    Capital expenditures ($ million) $ 144      $ 53      $ 371      $ 115
    Australia/New Zealand Operating Performance and Outlook
    
    Australia/New Zealand sales decreased 10% in the third quarter of 2007 to
319,000 ounces from 355,000 ounces in the year ago quarter, primarily due to
decreased production at Tanami, Jundee, Pajingo and Waihi.
    Gold sales at Jundee decreased 13% in the third quarter of 2007 compared
to 2006, primarily due to a 27% decrease in mill throughput, partially offset
by 21% higher ore grade. Gold sales at Pajingo decreased 12% in the third
quarter of 2007 from 2006 due to a 19% decrease in mill ore grade. Gold sales
at Waihi decreased 34% in the third quarter of 2007 from 2006, primarily due
to decreased open pit ore grade, partially offset by higher underground ore
grade. Gold sales at Tanami decreased 10% in the third quarter of 2007 from
2006, primarily due to the timing of sales. Gold ounces produced at Tanami
were marginally lower as mill ore grade decreased 9% from the blending of low
grade stockpiles, partially offset by a 5% increase in mill throughput. Gold
sales at Kalgoorlie increased 4% in the third quarter of 2007 compared to the
year ago quarter, primarily due to a 3% increase in mill throughput and the
sale of inventories. The Company continues to expect equity gold sales in
Australia/New Zealand of between 1.275 and 1.325 million ounces for 2007.
    Costs applicable to sales increased 28% in the third quarter of 2007 to
$480 per ounce from $376 per ounce in the year ago quarter, primarily due to
the strengthening Australian dollar exchange rate, which increased
Australia/New Zealand unit costs by approximately $49 per ounce compared to
the year ago quarter, and lower production in the third quarter of 2007.
Additionally, royalties increased due to higher gold prices and input costs
were higher, particularly related to fuel, electricity and labor.
    The following quarter on quarter costs applicable to sales variances
include the impact of the strengthening Australian and New Zealand dollars.
Costs applicable to sales increased 24% at Jundee from $349 per ounce to $433
per ounce, primarily due to lower production and higher contract mining and
electricity costs. At Waihi, costs applicable to sales increased 95% from $273
per ounce to $531 per ounce, primarily due to decreased gold production and
higher costs at the Favona underground operation compared to the lower cost
open pit production in the year ago quarter. Costs applicable to sales at
Kalgoorlie increased 27% from $481 per ounce to $609 per ounce, primarily due
to higher milling costs as a result of processing higher sulfur grades. At
Tanami, costs applicable to sales increased 14% from $379 per ounce to $431
per ounce, primarily due to increased milling costs related to additional
cyanide destruction. Costs applicable to sales at Pajingo increased 25% from
$318 per ounce in the year ago quarter to $398 per ounce in the third quarter
of 2007, primarily due to lower production and increased maintenance and labor
costs. Access to the Jandam ore body at Pajingo in the third quarter of 2006
resulted in significantly higher tons and grades in 2006, resulting in higher
production compared to the third quarter of 2007. Based on current mine plans,
Pajingo is approaching the end of its mine life, with operations expected to
be completed in the first half of 2008.
    The Company has revised its costs applicable to sales outlook for
Australia/New Zealand for the year from between $490 and $515 per ounce to
between $500 and $525 per ounce, reflecting the previously disclosed adverse
impact of the Australian dollar exchange rate appreciating above 0.80, as well
as continued oil price escalation. For every 0.01 move in the Australian
exchange rate during the fourth quarter, costs applicable to sales for the
entire year are expected to change by approximately $1-$2 per ounce above the
mid-point of the Australia/New Zealand outlook, based on an assumed average
exchange rate of 0.80.
    
    Australia/New Zealand Capital Projects
    
    Capital expenditures in Australia/New Zealand were $144 million and $371
million for the three and nine months ended September 30, 2007, respectively.
Including the impact of the strengthening Australian dollar, the Company has
reduced its expected capital spending for the year from between $675 and $730
million to between $650 and $700 NEWMONT - Q3 2007 RESULTS (October 31, 2007)
million. Capital expenditures in Australia for the fourth quarter of 2007 are
expected to change by roughly $3 million for every 0.01 move in the Australian
dollar exchange rate above an average exchange rate of 0.80. Development of
the Boddington project was approximately 50% complete at the end of September
2007, with start-up still expected in late 2008 or early 2009. The Company is
in the process of completing a definitive estimate to update the Boddington
capital costs, including the adverse impact of the strengthening Australian
dollar exchange rate. This definitive estimate is expected to be complete in
the first quarter of 2008.


    
    BATU HIJAU                   Q3 2007    Q3 2006    YTD 2007    YTD 2006
    Consolidated gold sales
     (000 ounces)                    200         59         374         266
    Equity gold sales
     (000 ounces)                     90         31         179         140
    Costs applicable to
     sales ($/ounce)               $ 147      $ 286       $ 207       $ 219
    Consolidated copper sales
     (million pounds)                163         90         351         288
    Equity copper sales
     (million pounds)                 74         48         170         152
    Costs applicable to sales
     ($/pound)                    $ 0.68     $ 0.73      $ 1.06      $ 0.75
    Capital expenditures
     ($ million)                    $ 19       $ 13        $ 43        $ 97
    Average realized copper
     price                        $ 3.34     $ 1.04      $ 3.13      $ 1.50
    Batu Hijau Operating Performance and Outlook
    
    Equity gold and copper sales at Batu Hijau increased substantially in the
third quarter of 2007 to 90,000 ounces and 74 million pounds, respectively,
from 31,000 ounces and 48 million pounds, respectively, in the year ago
quarter. Higher gold and copper production compared to the year ago quarter
was primarily due to processing significantly higher ore grades during the
quarter as dryer weather conditions allowed increased mining in Phase 4 at the
bottom of the pit. Mill throughput and copper and gold recoveries also
increased as a result of processing softer, higher grade ore. Total tons mined
decreased by 25% from the year ago quarter, primarily due to longer hauling
distances. The Company continues to expect equity gold and copper sales of
between 210,000 and 230,000 ounces and 190 and 210 million pounds,
respectively, in 2007.
    Total costs applicable to sales increased $57 million from the year ago
quarter, primarily due to less stockpiling of ore in the third quarter of 2007
compared to the year ago quarter. In the year ago quarter, additional ore was
stockpiled to feed the mill while mining operations concentrated on stripping
waste. Total spending on operations before stockpile allocations remained
unchanged in the third quarter of 2007 compared to the year ago quarter.
    Costs applicable to sales per unit decreased 49% per ounce of gold and 7%
per pound of copper in the third quarter of 2007 from 2006, due to increased
production compared to the year ago quarter. Additionally, a higher proportion
of costs were allocated to copper than gold due to the significantly higher
proportion of copper revenue in the third quarter of 2007 as compared to the
year ago quarter. The Company continues to expect costs applicable to sales to
remain between $225 and $240 per ounce of gold and between $1.10 and $1.20 per
pound of copper for 2007.
    The average realized copper price, after treatment and refining charges,
increased to $3.34 per pound from $1.04 per pound in the year ago quarter, as
copper sales were completely unhedged in the third quarter of 2007.
    
    Batu Hijau Capital Projects
    
    Consolidated capital expenditures at Batu Hijau were $19 million and $43
million for the three and nine months ended September 30, 2007. The Company
has lowered its expected consolidated capital expenditures at Batu Hijau for
the year from between $140 and $150 million to between $100 and $110 million.


    
    AHAFO                           Q3 2007   Q3 2006   YTD 2007   YTD 2006
    Consolidated gold sales
     (000 ounces)                       113        78        361         78
    Equity gold sales (000 ounces)      113        78        361         78
    Costs applicable to sales
     ($/ounce)                        $ 455     $ 251      $ 391      $ 251
    Capital expenditures ($ million)   $ 33      $ 47       $ 79      $ 155
    Ahafo Operating Performance and Outlook
    
    Gold ounces sold at Ahafo increased 45% in the third quarter of 2007 to
113,000 ounces from 78,000 ounces in the year ago quarter. The increase was
primarily due to a full quarter of operations in 2007, as Ahafo commenced
commercial operations in August 2006. During the first nine months of 2007,
the Company realized better than expected ore grades and mill recovery rates,
which resulted in higher than expected production at Ahafo. Mill ore grades
were higher than expected due to ore control improvement programs implemented
during the year. Increased mill recoveries were a result of higher than
expected yields from the transitional ore mined at the Apensu deposit. As a
result, the Company has narrowed its expected gold sales outlook for 2007 from
between 410,000 and 450,000 ounces to between 425,000 and 450,000 ounces.
    Costs applicable to sales at Ahafo increased 81% to $455 per ounce in the
third quarter of 2007 from $251 per ounce in the year ago quarter, primarily
due to increased mining and milling costs. Mining costs increased due to
higher waste removal costs as well as the year ago quarter benefiting from the
capitalization of pre-production costs and lower maintenance activities. In
addition, mining costs increased due to increased pit dewatering, labor, fuel
and tire costs. Milling costs increased compared to the year ago quarter due
to higher cost diesel generated electricity as a result of power rationing in
Ghana, as well as increased maintenance costs.
    Costs applicable to sales during the first nine months of 2007 were $391
per ounce, primarily due to better than expected power availability from the
national grid, which resulted in lower power generation costs than originally
expected. Based on the results of the first nine months of 2007 and the
potential opportunity for continued power supply from the national grid during
the fourth quarter of 2007, the Company has reduced its costs applicable to
sales outlook for the year from between $460 and $500 per ounce to between
$400 and $430 per ounce.
    
    Ghana Capital Projects
    
    Capital expenditures in Ghana were $38 million and $94 million for the
three and nine months ended September 30, 2007. The Company has reduced its
expected capital expenditures in Ghana for the year from between $180 and $200
million to between $130 and $160 million.


    
    OTHER OPERATIONS            Q3 2007   Q3 2006   YTD 2007   YTD 2006
    Consolidated gold sales
     (000 ounces)                    39        59        142        222
    Equity gold sales
     (000 ounces)                    36        55        134        210
    Costs applicable to sales
     ($/ounce)                    $ 378     $ 173      $ 330      $ 212
    Capital expenditures
     ($ million)                    $ 4       $ 1       $ 12        $ 8
    Other Operations Performance and Outlook
    
    Equity gold sales for the Kori Kollo mine in Bolivia, the La Herradura
mine in Mexico, and the Golden Giant mine in Canada decreased to 36,000 ounces
in the third quarter of 2007 from 55,000 ounces in the year ago quarter,
primarily due to the completion of mining at Golden Giant and lower production
at Kori Kollo. Equity gold sales at Kori Kollo decreased 31% in the third
quarter of 2007 from 2006, primarily due to the timing of production flow from
the leach pad. La Herradura gold sales decreased 10% in the third quarter of
2007 from the year ago quarter, primarily due to higher inventory sales in the
year ago quarter. Gold ounces produced at La Herradura in the third quarter of
2007 were consistent with the year ago quarter. The Company continues to
expect equity gold sales of between 180,000 and 200,000 ounces in 2007 from
its other operations.
    Costs applicable to sales increased in the third quarter of 2007 to $378
per ounce from $173 per ounce in the year ago quarter. Costs applicable to
sales per ounce increased significantly at Kori Kollo in the third quarter of
2007, primarily due to higher production taxes and lower production compared
to the year ago quarter. Costs applicable to sales increased 51% at La
Herradura, primarily due to increased waste removal costs. The Company
continues to expect costs applicable to sales of between $310 and $330 per
ounce for its other operations.
    
    CAPITAL, TAX RATE AND OTHER
    
    Capital expenditures for the third quarter of 2007 were $449 million,
primarily for the construction of the power plant and sustaining mine
development in Nevada ($176 million), construction of the gold mill and leach
pad expansions at Yanacocha in Peru ($67 million), construction of the
Boddington project and other sustaining mine development in Australia/New
Zealand ($144 million), as well as sustaining mine development in Ghana ($38
million). The Company has revised its expected consolidated capital
expenditures from between $1.8 and $2.0 billion to between $1.7 and $1.9
billion for 2007. The Company expensed $176 million of depreciation, depletion
and amortization during the third quarter of 2007, and has revised its
expected depreciation, depletion and amortization for the year from
approximately $750 to $800 million to approximately $700 to $750 million.
    The effective tax rate for the three months ended September 30, 2007 was
14% compared to 53% in the year ago quarter. The Company has revised the
expected 2007 tax rate from between 42% and 47% to between 24% and 30%,
primarily due to the favorable change related to the valuation allowance on
deferred tax assets associated with foreign tax credits.
    The Company incurred $40 million of general and administrative expenses
during the third quarter of 2007, and has revised anticipated expenses from
between $155 and $165 million to between $160 and $170 million for the year.
Including $28 million of net interest expense during the third quarter of
2007, the Company has revised its expected net interest expense from between
$95 and $105 to between $85 and $95 million for the year. Including $16
million of advanced projects, research and development expenditures during the
third quarter of 2007, as well as a change in classification of certain
expenditures to exploration, the Company has reduced its expected advanced
projects, research and development expenditures from between $85 and $100
million to between $65 and $80 million for the year.
    
    EXPLORATION REVIEW
    
    Exploration efforts continued as planned during the third quarter, with
expenditures of $47 million and $132 million for the three and nine months
ended September 30, 2007. The Company has increased its expected exploration
expenditures for the year from between $170 and $175 million to between $180
and $185 million, as a result of a change in classification for certain
expenditures from advanced projects, research and development to exploration.
As previously announced, we expect reserve replacement through exploration
alone to be challenged in 2007, with new, large-scale deposits becoming
increasingly scarce. In spite of these challenges, the Company's exploration
team continues to aggressively cover an extensive land position in many of the
World's premier gold belts.
    Exploration programs in North America focus primarily on near mine
potential in Nevada on the Carlin Trend, Battle Mountain-Eureka Trend and the
Northern Nevada Rift. The current year's surface and underground drill
programs are nearing completion, and remain primarily focused on reserve
definition.
    South American exploration is focused on near mine programs at Yanacocha
in Peru, as well as greenfield projects in the Guiana Shield and the Andes in
Peru. The expected spending in South America for the year was increased from
$34 million to approximately $42 million due to success at the Nassau Joint
Venture in Suriname, where in-fill drilling continued at the Merian II and
Maraba discoveries.
    The Australia/New Zealand exploration programs for the year have focused
on development drilling at Boddington, Jundee and Martha, as well as reserve
and non-reserve mineralization drilling at the Callie deposit in the Tanami.
    Drill programs at Ahafo continued exploring reserve and non-reserve
mineralization expansions at depth as well as other potential underground
targets. Additionally, the Ghanaian regional exploration program has focused
on target definition in the Sefwi and Ashanti Belts.


    STATEMENTS OF CONSOLIDATED INCOME

    
                                    Q3 2007    Q3 2006    YTD 2007   YTD 2006
                                    (unaudited in millions, except per share)
    

    
     Revenues
       Sales- gold, net              $1,099     $1,009      $3,104     $3,095
       Sales- copper, net               547         93       1,100        432
                                      1,646      1,102       4,204      3,527
    

    
     Costs and expenses
       Costs applicable to sales
       (exclusive of loss on settlement
        of price-capped forward sales
        contracts, Midas redevelopment
        and depreciation, depletion and
        amortization shown separately
        below)
         Gold                           627        525       1,931      1,564
         Copper                         111         66         373        215
       Loss on settlement of price-
        capped forward sales contracts    -          -         531          -
       Midas redevelopment               10          -          10          -
       Depreciation, depletion and
        amortization                    176        149         557        430
       Exploration                       47         41         132        120
       Advanced projects, research and
        development                      16         22          45         61
       General and administrative        40         29         113        103
       Other expense, net                19         34          93         61
                                      1,046        866       3,785      2,554
    

    
       Other income (expense)
         Other income, net               35         (9)         70         (2)
         Interest expense, net          (28)       (28)        (77)       (70)
                                          7        (37)         (7)       (72)
    

    
       Income from continuing operations
        before income tax, minority
        interest and equity income
        (loss) of affiliates            607        199         412        901
       Income tax expense               (84)      (106)       (105)      (259)
       Minority interest in income of
        consolidated subsidiaries      (198)       (52)       (352)      (279)
       Equity income of affiliates        -          1           -          1
       Income (loss) from continuing
        operations                      325         42         (45)       364
       Income (loss) from discontinued
        operations                       72        156      (1,552)       204
       Net income (loss)               $397       $198     $(1,597)      $568
    

    
     Income per common share
       Basic:
       Income (loss) from continuing
        operations                    $0.72      $0.09      $(0.10)     $0.81
       Income (loss) from discontinued
        operations                     0.16       0.35       (3.44)      0.45
       Net income (loss)              $0.88      $0.44      $(3.54)     $1.26
    

    
       Diluted:
       Income (loss) from continuing
        operations                    $0.72      $0.09      $(0.10)     $0.81
       Income (loss) from discontinued
        operations                     0.16       0.35       (3.43)      0.45
       Net income (loss)              $0.88      $0.44      $(3.53)     $1.26
    

    
       Basic weighted-average common
        shares outstanding              452        450         451       449
       Diluted weighted-average common
        shares outstanding              453        452         453       451
       Cash dividends declared per
        common share                  $0.10      $0.10       $0.30     $0.30
    


    CONSOLIDATED BALANCE SHEETS

    
                                         At September 30,    At December 31,
                                               2007              2006
                                             (unaudited in millions)
                   ASSETS
     Cash and cash equivalents                $1,053            $1,166
     Marketable securities and other
      short-term investments                   1,085               109
     Trade receivables                           352               142
     Accounts receivable                         147               206
     Inventories                                 387               382
     Stockpiles and ore on leach pads            395               378
     Deferred income tax assets                  143               156
     Other current assets                        130                93
       Current assets                          3,692             2,632
     Property, plant and mine
      development, net                         7,334             6,594
     Investments                                 351             1,319
     Long-term stockpiles and ore on
      leach pads                                 782               812
     Deferred income tax assets                1,004               796
     Other long-term assets                      200               178
     Goodwill                                  1,320             1,343
     Assets of operations held for sale          301             1,927
       Total assets                          $14,984           $15,601
    

    
                 LIABILITIES
     Current portion of long-term debt          $288              $159
     Accounts payable                            265               340
     Employee-related benefits                   148               182
     Derivative instruments                        -               174
     Income and mining taxes                     258               351
     Other current liabilities                   663               515
       Current liabilities                     1,622             1,721
     Long-term debt                            2,745             1,752
     Reclamation and remediation
      liabilities                                546               528
     Deferred income tax liabilities             422               626
     Employee-related benefits                   250               309
     Other long-term liabilities                 150               135
     Liabilities of operations held for
      sale                                       114                95
       Total liabilities                       5,849             5,166
    

    Minority interests in subsidiaries        1,506             1,098

    
            STOCKHOLDERS' EQUITY
     Common stock                                690               677
     Additional paid-in capital                6,708             6,703
     Accumulated other comprehensive
      income                                     743               673
     Retained (deficit) earnings                (512)            1,284
       Total stockholders' equity              7,629             9,337
       Total liabilities and stockholders'
        equity                               $14,984           $15,601
    


    STATEMENTS OF CONSOLIDATED CASH FLOW

    
                                           Q3 2007  Q3 2006  YTD 2007 YTD 2006
                                                 (unaudited in millions)
    Operating activities:
    Net (loss) income                         $397     $198  $(1,597)    $568
    Adjustments to reconcile net (loss)
     income to net cash from
      continuing operations:
         Depreciation, depletion and
          amortization                         176      149      557      430
         Revenue from prepaid forward
          sales obligation                     -        -        -        (48)
         Loss (income) from discontinued
          operations                           (72)    (156)   1,552     (204)
         Accretion of accumulated
          reclamation obligations               10        8       29       22
         Deferred income taxes                (125)     (38)    (268)    (115)
         Minority interest expense             198       52      352      279
         Gain on asset sales, net               (9)      (6)     (13)     (16)
         Hedge (gain) loss, net                 (2)       8       (9)      82
         Other operating adjustments and
          write-downs                            8       17       87      107
    Net change in operating assets and
     liabilities (Appendix A)                  (60)     (31)    (793)    (382)
    Net cash (used in) provided from
     continuing operations                     521      201     (103)     723
    Net cash provided from discontinued
     operations                                 35       24       96       73
    Net cash (used in) provided from
     operations                                556      225       (7)     796
    Investing activities:
      Additions to property, plant and mine
       development                            (449)    (404)  (1,162)  (1,104)
      Investments in marketable debt
       securities                              (82)    (283)    (206)  (1,340)
      Proceeds from sale of marketable debt
       securities                               74      398      208    1,928
      Acquisitions                               -     (161)       -     (348)
      Cash received on repayment of Batu
       Hijau carried interest                    -        -      161        -
      Other                                     20       13       25       19
    Net cash used in investing activities
     of continuing operations                 (437)    (437)    (974)    (845)
    Net cash provided from (used in)
     investing activities of
      discontinued operations                   80      280      123      255
    Net cash used in investing activities     (357)    (157)    (851)    (590)
    Financing activities:
      Proceeds from debt, net                1,547       99    2,708      198
      Repayment of debt                     (1,213)       -   (1,631)     (63)
      Early extinguishment of prepaid
       forward sales obligation                  -      (48)       -      (48)
      Dividends paid to common stockholders    (46)     (45)    (136)    (135)
      Dividends paid to minority interests
       of consolidated subsidiaries             (1)    (146)    (116)    (235)
      Proceeds from stock issuance               6        9       20       66
      Purchase Company share call options     (366)       -     (366)       -
      Issuance of Company share warrants       248        -      248        -
      Change in restricted cash and other        5       (9)       7      (11)
    Net cash provided from (used in)
     financing activities of continuing
     operations                                180     (140)     734     (228)
    Net cash used in financing activities
     of discontinued operations                  -       (7)       -       (7)
    Net cash provided from (used in)
     financing activities                      180     (147)     734     (235)
    Effect of exchange rate changes on
     cash                                        6        3       11        6
    Net change in cash and cash
     equivalents                               385      (76)    (113)     (23)
    Cash and cash equivalents at beginning
     of period                                 668    1,135    1,166    1,082
    Cash and cash equivalents at end of
     period                                 $1,053   $1,059   $1,053   $1,059
    


    OPERATING STATISTICS SUMMARY

    
                                          Q3 2007  Q3 2006     2007     2006
    Gold
    Consolidated ounces sold (000):
      Nevada (1)                              583      569    1,674    1,647
      Yanacocha                               360      578    1,127    2,133
      Batu Hijau                              200       59      374      266
      Australia/New Zealand
             Tanami                            93      103      336      302
             Kalgoorlie                        83       80      249      256
             Jundee                            78       90      211      229
             Pajingo                           44       50      131      117
             Waihi                             21       32       62      100
                                              319      355      989    1,004
    

    Ahafo                                     113       78      361       78

    
    Other
             Kori Kollo                        20       29       66      103
             La Herradura                      19       21       64       61
             Golden Giant                       -        9       12       58
                                               39       59      142      222
                                            1,614    1,698    4,667    5,350
    

    
    Equity ounces sold (000):
      Nevada (1)                              583      555    1,674    1,540
      Yanacocha                               185      297      579    1,095
      Batu Hijau                               90       31      179      140
      Australia/New Zealand
             Tanami                            93      103      336      302
             Kalgoorlie                        83       80      249      256
             Jundee                            78       90      211      229
             Pajingo                           44       50      131      117
             Waihi                             21       32       62      100
                                              319      355      989    1,004
    

    Ahafo                                     113       78      361       78

    
    Other
             Kori Kollo                        17       25       58       91
             La Herradura                      19       21       64       61
             Golden Giant                       -        9       12       58
                                               36       55      134      210
                                            1,326    1,371    3,916    4,067
    

    
    Discontinued Operations
             Zarafshan                          -        6        -       62
             Holloway                           -        2        -       26
                                            1,326    1,379    3,916    4,155
    

    
     Copper
       Batu Hijau (pounds sold in
        millions):
             Consolidated                     163       90      351      288
             Equity                            74       48      170      152
    


    
    (1)  Includes sales in 2006 from Phoenix and Leeville start-up activities
         which are not included in Revenue, Costs applicable to sales and
         Depreciation, depletion and amortization per ounce calculations prior
         to commencing operations on October 1, 2006 and October 14, 2006,
         respectively. Revenues and costs during start-up activities are
         included in Other income, net.
    


    OPERATING STATISTICS - NEVADA

    
                                         Q3 2007 Q3 2006 YTD 2007 YTD 2006
     Tons mined (000 dry short tons):
       Open pit
         Ore                              10,964   8,975   32,192   25,485
         Waste                            39,176  34,792  139,525  111,361
           Total                          50,140  43,767  171,717  136,846
       Underground                            354     340    1,346      991
     Tons milled/processed (000 dry short
      tons):
       Mill                                6,498   3,926   18,581   11,343
       Leach                               4,339   5,414   10,203   17,370
     Average ore grade (oz/ton):
       Mill                                0.095   0.135    0.098    0.134
       Leach                               0.034   0.025    0.035    0.025
     Average mill recovery rate            81.2%   79.1%    81.8%    81.6%
     Gold ounces produced (thousands):
       Mill                                  509     443    1,445    1,325
       Leach                                  76      81      232      240
       Incremental start-up                    -      46        -       83
         Consolidated                        585     570    1,677    1,648
         Equity                              585     557    1,677    1,540
     Gold ounces sold (thousands):
       Consolidated  (1)                     583     569    1,674    1,647
       Equity (1)                            583     555    1,674    1,540
    

    
     Gold production costs (millions):
       Costs applicable to sales            $249    $224     $782     $664
       Depreciation, depletion and
        amortization                         $48     $37     $169     $108
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $435    $428     $479     $422
       By-product credits                    (26)     (9)     (28)     (10)
       Royalties and production taxes         15       6       14       10
       Reclamation/accretion expense           2       3        2        3
         Costs applicable to sales          $426    $428     $467     $425
         Depreciation, depletion, and
          amortization                       $82     $70     $101      $69
    


    
    (1)  Includes sales in 2006 from Phoenix and Leeville start-up activities
         which are not included in Revenue, Costs applicable to sales and
         Depreciation, depletion and amortization per ounce calculations prior
         to commencing operations on October 1, 2006 and October 14, 2006,
         respectively. Revenues and costs during start-up activities are
         included in Other income, net.
    


    OPERATING STATISTICS - NEVADA BY LOCATION

    Q3 2007 Q3 2006 YTD 2007 YTD 2006

    
    Mine production:
    Open pit ore mined (000 dry short
     tons):
       Carlin                              4,691   5,851   14,736   16,120
       Phoenix                             2,868     -      8,988      -
       Twin Creeks                         3,405   1,914    8,468    6,373
       Lone Tree                             -     1,210      -      2,992
                                          10,964   8,975   32,192   25,485
       Average ore grade (oz/ton)          0.060   0.057    0.059    0.049
    

    
    Open pit waste mined (000 dry short
     tons):
       Carlin                             19,385  18,782   71,733   55,420
       Phoenix                            10,541     -     34,116      -
       Twin Creeks                         9,250  13,841   33,676   46,053
       Lone Tree                             -     2,169      -      9,888
                                          39,176  34,792  139,525  111,361
    

    
    Underground ore mined (000 dry short
     tons):
       Carlin - Carlin East                    9      54      150      136
       Carlin - Deep Post                     68      82      224      289
       Carlin - Chukar                       102      86      295      222
       Carlin - Leeville                     143       -      398        -
       Midas                                  11      84      189      235
       Turquoise Ridge                        21      34       90      110
                                             354     340    1,346      991
       Average ore grade (oz/ton)          0.369   0.471    0.391    0.474
    

    
    Mill throughput (000 dry short tons):
       Carlin - Mill 5                     1,344   1,204    3,931    3,488
       Carlin - Mill 6                       809     787    2,223    1,981
       Twin Creeks - Juniper                 268     224      753      694
       Twin Creeks - Sage                    864     814    2,439    2,442
       Lone Tree                             411     660    1,297    2,060
       Phoenix                             2,674       -    7,529        -
       Midas                                   4      84      184      236
       Other                                 124     153      225      442
                                           6,498   3,926   18,581   11,343
       Average ore grade (oz/ton)          0.095   0.135    0.098    0.134
       Average mill recovery rate          81.2%   79.1%    81.8%    81.6%
    


    OPERATING STATISTICS - YANACOCHA

    
                                         Q3 2007 Q3 2006 YTD 2007 YTD 2006
     Tons mined (000 dry short tons):
       Ore                                28,680  30,978   65,878   91,877
       Waste                              28,970  28,880   90,753   73,715
         Total                            57,650  59,858  156,631  165,592
     Tons processed (000 dry short tons)  28,680  30,978   65,877   91,885
     Average ore grade (oz/ton)            0.021   0.018    0.018    0.029
     Gold ounces produced (thousands):
       Consolidated                          374     605    1,095    2,156
       Equity                                192     311      562    1,107
     Gold ounces sold (thousands):
       Consolidated                          360     578    1,127    2,133
       Equity                                185     297      579    1,095
    

    
     Gold production costs (millions):
       Costs applicable to sales            $129    $121     $402     $390
       Depreciation, depletion and
        amortization                         $42     $46     $124     $138
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $358    $218     $362     $188
       By-product credits                    (19)    (15)     (23)     (12)
       Royalties and production taxes         13       4       12        4
       Reclamation/accretion expense           6       3        6        3
         Costs applicable to sales          $358    $210     $357     $183
         Depreciation, depletion, and
          amortization                      $117     $80     $110      $65
    


    OPERATING STATISTICS - BATU HIJAU

    
                                         Q3 2007 Q3 2006 YTD 2007 YTD 2006
     Tons mined (000 dry short tons):
       Ore                                15,319  37,601   24,959  106,153
       Waste                              47,872  46,747  157,664  111,234
         Total                            63,191  84,348  182,623  217,387
     Tons milled (000 dry short tons)     12,984  11,362   36,605   34,271
     Average ore grade:
       Gold (oz/ton)                       0.020   0.007    0.013    0.010
       Copper                              0.73%   0.52%    0.60%    0.51%
     Average mill recovery rate:
       Gold                                84.1%   75.2%    82.3%    78.4%
       Copper                              92.7%   85.4%    86.6%    85.7%
     Gold ounces produced (thousands):
       Consolidated                          211      63      397      272
       Equity                                 95      33      190      144
     Gold ounces sold (thousands):
       Consolidated                          200      59      374      266
       Equity                                 90      31      179      140
     Copper pounds produced (millions):
       Consolidated                          174     100      379      303
       Equity                                 78      53      183      160
     Copper pounds sold (millions):
       Consolidated                          163      90      351      288
       Equity                                 74      48      170      152
    

    
     Gold production costs (millions):
       Costs applicable to sales             $29     $17      $77      $58
       Depreciation, depletion and
        amortization                          $5      $4      $16      $14
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $138    $279     $198     $212
       By-product credits                     (7)    (11)      (7)      (8)
       Royalties and production taxes         14      15       14       13
       Reclamation/accretion expense           2       3        2        2
         Costs applicable to sales          $147    $286     $207     $219
         Depreciation, depletion, and
          amortization                       $27     $66      $44      $52
    

    
     Copper production costs (millions):
       Costs applicable to sales            $111     $66     $373     $215
       Depreciation, depletion and
        amortization                         $24     $14      $78      $49
     Copper production costs (per pound
      sold):
       Direct mining and production costs  $0.68   $0.72    $1.07    $0.75
       By-product credits                  (0.04)  (0.03)   (0.04)   (0.03)
       Royalties and production taxes       0.03    0.03     0.02     0.02
       Reclamation/accretion expense        0.01    0.01     0.01     0.01
       Costs applicable to sales           $0.68   $0.73    $1.06    $0.75
       Depreciation, depletion, and
        amortization                       $0.14   $0.14    $0.22    $0.16
    


    OPERATING STATISTICS - AHAFO

    
                                          Q3 2007 Q3 2006 YTD 2007  YTD 2006
     Tons mined (000 dry short tons):
       Ore                                  2,110   2,343    6,861   2,343
       Waste                               11,167   5,746   30,795   5,746
        Total                              13,277   8,089   37,656   8,089
     Tons milled (000 dry short tons):      2,204   1,345    6,463   1,345
     Average ore grade (oz/ton)             0.055   0.059    0.060   0.059
     Average mill recovery rate             91.6%   91.4%    92.4%   91.4%
     Gold ounces produced (thousands):
       Consolidated                           114      78      363      78
       Equity                                 114      78      363      78
     Gold ounces sold (thousands):
       Consolidated                           113      78      361      78
       Equity                                 113      78      361      78
    

    
     Gold production costs (millions):
       Costs applicable to sales              $51     $19     $141     $19
       Depreciation, depletion and
        amortization                          $11      $6      $34      $6
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $435    $233     $371    $233
       By-product credits                      (1)     (1)      (1)     (1)
       Royalties and production taxes          20      18       20      18
       Reclamation/accretion expense            1       1        1       1
         Costs applicable to sales           $455    $251     $391    $251
         Depreciation, depletion, and
          amortization                        $96     $82      $94     $82
    


    OPERATING STATISTICS - PAJINGO AND JUNDEE

    
                                          Q3 2007  Q3 2006 YTD 2007 YTD 2006
     PAJINGO
     Tons mined (000 dry short tons)          165      154      468      406
     Tons milled (000 dry short tons)         166      153      457      408
     Average ore grade (oz/ton)             0.275    0.341    0.281    0.291
     Average mill recovery rate              96.3%    96.9%    96.5%    96.9%
     Gold ounces produced (thousands):
       Consolidated                            44       50      128      116
       Equity                                  44       50      128      116
     Gold ounces sold (thousands):
       Consolidated                            44       50      131      117
       Equity                                  44       50      131      117
    

    
     Gold production costs (millions):
       Costs applicable to sales              $17      $16      $54      $45
       Depreciation, depletion and
        amortization                           $9       $8      $25      $19
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $393     $312     $401     $381
       By-product credits                     (15)     (13)     (13)     (14)
       Royalties and production taxes          17       17       18       17
       Reclamation/accretion expense            3        2        3        3
         Costs applicable to sales           $398     $318     $409     $387
         Depreciation, depletion, and
          amortization                       $215     $170     $191     $163
    

    
     JUNDEE
     Tons mined (000 dry short tons):
       Open pit
         Ore                                  252       94      744      635
         Waste                              1,741    2,184    4,768    4,288
           Total                            1,993    2,278    5,512    4,923
       Underground                            261      320      787      908
     Tons milled (000 dry short tons)         463      630    1,388    1,823
     Average ore grade (oz/ton)             0.186    0.154    0.161    0.136
     Average mill recovery rate              94.2%    92.8%    91.8%    92.2%
     Gold ounces produced (thousands):
       Consolidated                            78       90      204      230
       Equity                                  78       90      204      230
     Gold ounces sold (thousands):
       Consolidated                            78       90      211      229
       Equity                                  78       90      211      229
    

    
     Gold production costs (millions):
       Costs applicable to sales              $34      $31     $107      $84
       Depreciation, depletion and
        amortization                           $7       $7      $19      $18
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $411     $331     $485     $349
       By-product credits                      (2)      (1)      (2)      (1)
       Royalties and production taxes          18       15       17       15
       Reclamation/accretion expense            6        4        7        5
         Costs applicable to sales           $433     $349     $507     $368
         Depreciation, depletion, and
          amortization                        $87      $76      $89      $77
    


    OPERATING STATISTICS - TANAMI AND KALGOORLIE

    
                                          Q3 2007  Q3 2006 YTD 2007 YTD 2006
     TANAMI
     Tons mined (000 dry short tons)          526      551    1,534    1,597
     Tons milled (000 dry short tons)         780      741    2,292    2,344
     Average ore grade (oz/ton)             0.137    0.150    0.151    0.136
     Average mill recovery rate             94.5%    95.0%    95.2%    95.1%
     Gold ounces produced (thousands):
       Consolidated                           102      103      331      301
       Equity                                 102      103      331      301
     Gold ounces sold (thousands):
       Consolidated                            93      103      336      302
       Equity                                  93      103      336      302
    

    
     Gold production costs (millions):
       Costs applicable to sales              $40      $39     $141     $113
       Depreciation, depletion and
        amortization                           $8       $8      $27      $21
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $375     $317     $354     $321
       By-product credits                      (1)      (1)      (1)      (1)
       Royalties and production taxes          54       60       64       51
       Reclamation/accretion expense            3        3        2        3
         Costs applicable to sales           $431     $379     $419     $374
         Depreciation, depletion, and
          amortization                        $88      $75      $81      $71
    

    
     KALGOORLIE
     Tons mined (000 dry short tons):
      Open pit
       Ore                                  1,720    1,728    5,019    5,323
       Waste                                9,557    9,943   26,625   29,419
         Total                             11,277   11,671   31,644   34,742
      Underground                              50       53      150      157
     Tons milled (000 dry short tons)       1,672    1,627    4,918    4,801
     Average ore grade (oz/ton)             0.054    0.064    0.055    0.064
     Average mill recovery rate              85.5%    84.7%    85.3%    84.3%
     Gold ounces produced (thousands):
       Consolidated                            81       80      238      255
       Equity                                  81       80      238      255
     Gold ounces sold (thousands):
       Consolidated                            83       80      249      256
       Equity                                  83       80      249      256
    

    
     Gold production costs (millions):
       Costs applicable to sales              $51      $39     $145     $122
       Depreciation, depletion and
        amortization                           $6       $6      $19      $19
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $586     $463     $561     $458
       By-product credits                      (3)      (3)      (3)      (3)
       Royalties and production taxes          15       15       16       15
       Reclamation/accretion expense           11        6       11        6
         Costs applicable to sales           $609     $481     $585     $476
         Depreciation, depletion, and
          amortization                        $72      $74      $77      $73
    


    OPERATING STATISTICS - WAIHI AND GOLDEN GIANT

    
                                          Q3 2007  Q3 2006 YTD 2007 YTD 2006
     WAIHI (MARTHA)
     Tons mined (000 dry short tons):
       Open pit
         Ore                                  158      128      186      845
         Waste                                680       85    3,048      160
           Total                              838      213    3,234    1,005
       Underground                             73       15      184       63
     Tons milled (000 dry short tons)         189      233      290      848
     Average ore grade (oz/ton)             0.116    0.151    0.203    0.125
     Average mill recovery rate              89.9%    92.3%    88.9%    93.5%
     Gold ounces produced (thousands):
       Consolidated                            21       32       54      101
       Equity                                  21       32       54      101
     Gold ounces sold (thousands):
       Consolidated                            21       32       62      100
       Equity                                  21       32       62      100
    

    
     Gold production costs (millions):
       Costs applicable to sales              $11       $9      $33      $20
       Depreciation, depletion and
        amortization                           $5       $3      $15       $9
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $546     $335     $543     $271
       By-product credits                     (31)     (70)     (29)     (80)
       Royalties and production taxes           6        2        7        1
       Reclamation/accretion expense           10        6       10        6
         Costs applicable to sales           $531     $273     $531     $198
         Depreciation, depletion, and
          amortization                       $253     $102     $237      $92
    

    
     GOLDEN GIANT
     Tons mined (000 dry short tons)            -        -        -        13
     Tons milled (000 dry short tons)           -        -        -        17
     Average ore grade (oz/ton)                 -        -        -     0.627
     Average mill recovery rate                 -        -        -     96.9%
     Gold ounces produced (thousands):
       Consolidated                             -        9       12        58
       Equity                                   -        9       12        58
     Gold ounces sold (thousands):
       Consolidated                             -        9       12        58
       Equity                                   -        9       12        58
    

    
     Gold production costs (millions):
       Costs applicable to sales               $-       $3       $2       $13
       Depreciation, depletion and
        amortization                           $-       $-       $-        $1
     Gold production costs (per ounce
      sold):
       Direct mining and production costs      $-     $279     $188      $208
       By-product credits                       -       (2)      (3)       (1)
       Royalties and production taxes           -       (2)      (9)        -
       Reclamation/accretion expense            -       25       29        12
        Costs applicable to sales              $-     $300     $205      $219
        Depreciation, depletion, and
         amortization                          $-       $-       $-       $10
    


    OPERATING STATISTICS - KORI KOLLO AND LA HERRADURA

    
                                         Q3 2007 Q3 2006 YTD 2007 YTD 2006
     KORI KOLLO
     Tons mined (000 dry short tons):
       Ore                                 2,436   2,177    6,614    7,596
       Waste                               2,673   4,072    9,896    9,978
         Total                             5,109   6,249   16,510   17,574
     Tons processed (000 dry short tons)   2,436   2,177    6,614    7,596
     Average ore grade (oz/ton)            0.019   0.021    0.019    0.021
     Gold ounces produced (thousands):
       Consolidated                           20      26       67      104
       Equity                                 18      23       59       91
     Gold ounces sold (thousands):
       Consolidated                           20      29       66      103
       Equity                                 17      25       58       91
    

    
     Gold production costs (millions):
       Costs applicable to sales              $8      $2      $24      $19
       Depreciation, depletion and
        amortization                          $2      $2       $8       $6
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $396    $280     $375     $193
       By-product credits                    (17)    (23)     (21)     (14)
       Royalties and production taxes          -    (182)       -        -
       Reclamation/accretion expense          17      11       15        9
         Costs applicable to sales          $396     $86     $369     $188
         Depreciation, depletion, and
          amortization                      $126     $78     $115      $63
    


    
     LA HERRADURA
     Tons mined (000 dry short tons):
       Ore                                   894   1,029    3,503    3,045
       Waste                               5,050   3,814   13,570   10,025
         Total                             5,944   4,843   17,073   13,070
     Tons processed (000 dry short tons)   1,331   1,029    3,940    3,045
     Average ore grade (oz/ton)            0.021   0.023    0.022    0.023
     Gold ounces produced (thousands):
       Consolidated                           19      15       64       55
       Equity                                 19      15       64       55
     Gold ounces sold (thousands):
       Consolidated                           19      21       64       61
       Equity                                 19      21       64       61
    

    
     Gold production costs (millions):
       Costs applicable to sales              $7      $5      $20      $15
       Depreciation, depletion and
        amortization                          $1      $3       $5       $7
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $372    $246     $332     $250
       By-product credits                    (14)    (11)     (19)      (6)
       Royalties and production taxes          -       -        -        -
       Reclamation/accretion expense           1       2        1        2
         Costs applicable to sales          $359    $237     $314     $246
         Depreciation, depletion, and
          amortization                       $78    $131      $77     $109
    
    The Company's third quarter earnings conference call and web cast
presentation will be held on October 31, 2007 beginning at 4:00 p.m. Eastern
Time (2:00 p.m. Mountain Time). To participate:

    
    Dial-In Number:   210.234.0000
    Leader:           John Seaberg
    Password:         Newmont
    
    The conference call will also be simultaneously carried on our web site
at www.newmont.com under Investor Information/Presentations and will be
archived there for a limited time.
    
    Cautionary Statement:
    
    This news 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 that are intended to be
covered by the safe harbor created by such sections. Such forward-looking
statements include, without limitation, (i) estimates of future gold and
copper production and sales; (ii) estimates of future costs applicable to
sales; (iii) estimates of future capital expenditures, project costs, tax
rates and expenses; (iv) estimates regarding timing of future development,
construction, production or closure activities; (v) statements regarding
future exploration results and the replacement of reserves and (vi) statements
regarding potential cost savings, productivity, operating performance, cost
structure and competitive position. 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, forward-looking 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 such 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 2006 Annual Report on Form
10-K, filed February 26, 2007, which is on file 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," 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.




For further information:

For further information: Investors, John Seaberg, (303) 837-5743, 
john.seaberg@newmont.com, or Media, Omar Jabara, (303) 837-5114, 
omar.jabara@newmont.com, both of Newmont Web Site: http://www.newmont.com/

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Newmont Mining Corporation

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