Newmont Reports Second Quarter Results and Impact of Strategic Initiatives



    DENVER, Aug. 2 /CNW/ -- Newmont Mining Corporation (NYSE:   NEM) today
announced second quarter financial and operating results, which include a
negative $2.125 billion impact of strategic initiatives completed during the
second quarter.  For the quarter, the Company reported a net loss of $2.06
billion (-$4.57 per share), compared with net income of $161 million ($0.36
per share) for the second quarter of 2006.


    
    Description ($ million)                               Q2 2007    Q2 2006
    Write-down of Merchant Banking Goodwill              $(1,665)      $--
    Settlement of price-capped forward sales contracts     $(460)      $--
    Batu Hijau minority loan repayment                      $(25)      $--
    Reclamation obligations at non-operating properties     $(11)      $--
    Settlement of senior management retirement obligations   $(8)      $--
    Prepaid forward deliveries                               $--      $(23)
    
    Richard T. O'Brien, President and Chief Executive Officer, said, "As we
refocus our efforts on cost control and operational efficiency, we continue to
expect gold sales of between 5.2 and 5.6 million equity ounces at costs
applicable to sales of between $375 and $400 an ounce for the year.  For the
quarter, our financial results were impacted by several strategic initiatives,
including the write-down associated with the discontinuation of our Merchant
Banking segment and the elimination of our remaining gold hedge positions.
With the elimination of our gold hedges, Newmont is now the world's largest
unhedged gold producer.  In July, we also completed a $1.15 billion
Convertible Senior Notes issue, providing further financial flexibility to
complete the Boddington project in Australia, the gold mill at Yanacocha in
Peru and the power plant in Nevada.  As we turn our attention to our core gold
business, we continue to optimize plans for our prospective gold
opportunities, including the potential development of our Conga project in
Peru and the Akyem project in Ghana."


    
    Financial ($ million,
     except per share)     Q2 2007      Q2 2006     YTD 2007     YTD 2006
    Revenues                $1,302       $1,293       $2,558       $2,425
    (Loss) income from
      continuing operations  $(406)        $128        $(370)        $322
    (Loss) income from
      continuing operations
      per share             $(0.90)       $0.29       $(0.82)       $0.71
    Net (loss) income      $(2,062)        $161      $(1,994)        $370
    Net (loss) income
     per share              $(4.57)       $0.36       $(4.42)       $0.82
    


    
    Operating               Q2 2007      Q2 2006     YTD 2007     YTD 2006
    Consolidated gold
     sales (000 ounces)(1)   1,448        1,843        3,053        3,652
    Equity gold sales
     (000 ounces)(1),(2)     1,248        1,384        2,590        2,776
    Average realized
     gold price
     ($/ounce) (3)            $667         $605         $660         $580
    Costs applicable to
     sales ($/ounce)          $433         $299         $427         $287
    Cash operating
     margin ($/ounce) (4)     $234         $306         $233         $293
    Capital
     expenditures
     ($ million)              $351         $334         $713         $700
    

    
    (1)  Includes sales 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 three and six months ended June 30, 2006.
    

    
    (3)  Before treatment and refining charges but after hedge losses
         (excluding settlement of price-capped forward sales contracts) and
         provisional pricing mark-to-market adjustments.
    

    
    (4)  Cash operating margin is defined as the Average realized gold price
         less Costs applicable to sales (excluding DD&A and loss on price-
         capped forward sales contracts).
    


    Regional Highlights and 2007 Outlook


    
    Nevada                        Q2 2007   Q2 2006    YTD 2007    YTD 2006
    Consolidated gold
     sales (000 ounces)(1)          531       543        1,091      1,078
    Equity gold sales
     (000 ounces)(1)                531       496        1,091        985
    Costs applicable to sales
     ($/ounce)                     $485      $450         $489       $423
    Capital expenditures
     ($ million)                   $119      $136         $277       $290
    


    
    (1)  Includes sales 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.
    Nevada Operating Performance and Outlook
    
    Equity gold sales in Nevada increased in the second quarter of 2007 to
531,000 ounces from 496,000 ounces in the prior year quarter.  Gold sales
increased over the prior twelve months as Leeville and Phoenix both entered
their first full year of commercial production.  Open pit ore mined increased
37% to 10.7 million tons in the second quarter of 2007, up from 7.8 million
tons in the prior year quarter.  Underground ore mined increased 79% in the
second quarter of 2007 due to commencement of commercial production at
Leeville and steady ramp-up toward full capacity.  Ore milled increased 54% to
5.9 million tons from 3.8 million tons in the prior year quarter.  Milled ore
grade decreased 22% with the processing of lower grade ore from Phoenix.  Ore
placed on leach pads decreased by 53% from the prior year quarter due to the
completion of mining at Lone Tree in 2006.  Additionally, fewer leach ore tons
were processed at Carlin, as the ore mined during the quarter contained a
higher proportion of mill material.
    In June, a ground subsidence occurred in an area of the Midas underground
mine, resulting in an employee fatality.  The state and federal mine safety
regulators have suspended operations at the mine pending further review and
investigation.  At this time, it cannot be reasonably predicted when the mine
will be reopened, however, the Company does not expect a material impact on
Nevada's production.  The Company continues to expect equity gold sales in
Nevada of between 2.3 to 2.6 million ounces for 2007.
    Costs applicable to sales increased in the second quarter of 2007 to $485
per ounce from $450 per ounce in the year ago quarter due to higher operating
costs at Phoenix, as well as continued deployment of higher cost underground
and maintenance contracted services.  Waste removal costs increased as a
result of accelerated mining at Pete, Gold Quarry and Twin Creeks.  Labor and
input commodity cost escalation also continues to impact operating costs.
    Costs applicable to sales for the full year in Nevada, excluding the
impact of Phoenix, are projected to be within the expected range of between
$375 and $400 per ounce.  However, ongoing challenges at Phoenix will likely
result in costs applicable to sales for Nevada of between $400 and $440 per
ounce for the year.  Potentially higher grades, improved throughput and
increased recoveries at Leeville and Twin Creeks could provide cost reduction
opportunities for the remainder of 2007.
    
    Phoenix Update
    
    Phoenix remains the primary risk factor impacting Nevada's gold sales and
costs applicable to sales outlook for the year.  During the second quarter of
2007, Phoenix continued to experience lower than expected recoveries and
throughput due to hard ore and reduced crusher availability.  The Company made
improvements to the flotation circuit and installed a cyanide detoxification
system to improve recoveries during the second quarter.  Additionally,
blasting improvements were made during the second quarter which enhanced
fragmentation of the harder ore and increased throughput.  The Company
continues to evaluate solutions to address ongoing metallurgical issues, mill
throughput and crusher availability, with a final optimization plan expected
by mid-2008.
    
    Nevada Capital Projects
    
    Capital expenditures in Nevada were $119 million in the second quarter of
2007.  Capital expenditures for the year are expected to remain between $560
and $630 million, with spending primarily related to the construction of the
power plant, mine equipment replacement and sustaining development.
Construction of the 200 megawatt coal-fired power plant was approximately 77%
complete at the end of the second quarter and remains on schedule for
completion in mid-2008.  Capital costs for the project are expected to remain
between $620 and $640 million.  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                  Q2 2007     Q2 2006     YTD 2007    YTD 2006

    
    Consolidated gold
     sales (000 ounces)          312          785          767      1,555
    Equity gold sales
     (000 ounces)                160          403          394        798
    Costs applicable
     to sales ($/ounce)         $426         $185         $357       $173
    Capital expenditures
     ($ million)                 $58          $57         $114       $113
    Yanacocha Operating Performance and Outlook
    
    Equity gold sales at Yanacocha decreased in the second quarter of 2007 to
160,000 ounces from 403,000 ounces in the prior year quarter due to a higher
waste-to-ore ratio and the mining of lower ore grades.  Ore mined decreased to
20.7 million tons in the second quarter of 2007 from 29.8 million tons in the
prior year quarter.  During the same periods, the amount of waste mined
increased to 32 million tons from 25.5 million tons.  Leached ore grade
decreased by 47% from 0.032 to 0.017 ounces per ton for the second quarter of
2007, primarily due to a different mine sequence at the La Quinua pit compared
to the prior year quarter.
    The Company continues to expect equity gold sales of between 775,000 and
825,000 ounces for 2007.  Second half production at Yanacocha is weighted to
the fourth quarter due to the timing of ore to be placed on leach pads.
Yanacocha's gold sales for the remainder of the year could be adversely
impacted by higher waste removal rates.  Additional sales opportunities exist
from inventory and higher ore grades during the second half of 2007.
    Costs applicable to sales increased in the second quarter of 2007 to $426
per ounce from $185 per ounce in the year ago quarter, primarily due to lower
production, a higher proportion of waste tons mined, and a valuation charge
related to the La Quinua leach pad inventory.  However, potential additional
sales from higher grades and inventory reductions in the second half of 2007
could result in costs applicable to sales for the year toward the lower end or
below the expected range of $340 to $360 per ounce.
    
    Yanacocha Capital Projects
    
    Consolidated capital expenditures at Yanacocha were $58 million in the
second quarter of 2007.  Yanacocha's consolidated capital expenditures for the
year are expected to remain between $310 and $340 million.  Progress on the
gold mill continues as expected, with construction approximately 68% complete
at the end of the second quarter, with commercial production by mid-2008.
Capital costs on the project remain 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.

    The Company continues to optimize the Conga project with a development
decision expected in 2008, pending the completion of further design review and
community initiatives.


    
    Australia/New Zealand       Q2 2007     Q2 2006     YTD 2007     YTD 2006
    Consolidated gold
     sales (000 ounces)           338         316          670          649
    Equity gold sales
     (000 ounces)                 338         316          670          649
    Costs applicable to sales
     ($/ounce)                   $456         $388         $487        $386
    Capital expenditures
     ($ million)                 $129          $39         $227         $62
    Australia/New Zealand Operating Performance and Outlook
    
    Australia/New Zealand sales increased in the second quarter of 2007 to
338,000 ounces from 316,000 ounces in the prior year quarter due to increased
production at Tanami and Pajingo, partially offset by lower production at
Kalgoorlie, Jundee and Waihi (Martha).  Gold sales at Tanami increased 43% in
the second quarter of 2007 from 2006, due to a 44% increase in mill ore grade.
Gold sales at Pajingo increased 11% in the second quarter of 2007 from 2006
due to a 14% increase in ore tons mined, a 10% increase in tons milled and a
2% increase in mill ore grade as mining and ground conditions improved during
the second quarter of 2007.  Gold sales at Kalgoorlie decreased 13% in the
second quarter of 2007 compared to the prior year quarter, primarily due to a
11% decrease in mill ore grade due to the planned mining sequence.  Gold sales
at Jundee decreased 9% in the second quarter of 2007 compared to 2006,
primarily due to a 25% decrease in mill throughput, partially offset by a 28%
increase in mill ore grade.  Lower mill throughput was caused by the
relocation of the Nimary ball mill to the Jundee mill.  Gold sales at Waihi
(Martha) decreased 10% in the second quarter of 2007 from 2006, due to the
planned transition to underground operations and the ramp-up to steady state
milling of underground material.  Mill ore grade at Waihi (Martha) increased
to 0.378 ounces per ton, up from 0.112 ounces per ton in the prior year
quarter due to the transition from open pit to underground mining.  Mill
throughput decreased 73% and average recoveries decreased 6% as the mill began
processing underground material.  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 in the second quarter of 2007 to $456
per ounce from $388 per ounce in the year ago quarter, primarily as a function
of adverse movements in the Australian dollar exchange rate, increased
royalties due to the higher gold prices, as well as increased diesel,
electricity and labor costs.  The strengthening Australian dollar increased
costs applicable to sales in Australia/New Zealand by approximately $43 per
ounce from the prior year quarter.  Costs applicable to sales increased 51% at
Jundee, primarily attributable to higher labor, maintenance and electricity
costs, as well as increased waste removal costs.  Electricity prices more than
doubled due to higher natural gas prices.  At Waihi (Martha), costs applicable
to sales were 215% higher, primarily due to the decreased gold production,
lower mill throughput and lower average recoveries from the planned transition
to underground operations.  Costs applicable to sales increased 7% at
Kalgoorlie, primarily due to lower gold production caused by lower ore grade
compared with the prior year quarter.  Costs applicable to sales at Pajingo
were steady year over year, primarily due to increased production offsetting
the impact of higher maintenance and overhead costs.  At Tanami, cost
applicable to sales decreased 3%, primarily due to increased production,
partially offset by higher hauling charges due to longer hauling distances and
increased royalties due to higher gold prices.
    The Company has revised its costs applicable to sales outlook for
Australia/New Zealand for the year to between $490 and $515 per ounce,
reflecting the adverse impact of the Australian dollar exchange rate
appreciating above 0.75, as well as higher than expected operating costs at
Jundee.  For every 0.01 move in the Australian exchange rate, costs applicable
to sales in the second half of 2007 are expected to change by approximately
$5-$6 per ounce above an assumed average exchange rate of 0.80.
    
    Australia/New Zealand Capital Projects
    
    Capital expenditures in Australia/New Zealand were $129 million in the
second quarter of 2007.  Including the impact of the strengthening Australian
dollar, capital spending for the year is expected to be between $675 and $730
million.  Capital expenditures in Australia for the second half of 2007 are
expected to change by roughly $5 million for every 0.01 move in the Australian
dollar exchange rate above an assumed average exchange rate of 0.80.  Capital
expenditures increased during the second quarter, primarily related to
Boddington.  Development of the Boddington project remains on schedule and was
approximately 44% complete at the end of June 2007, with start-up expected in
late 2008 or early 2009.  Newmont's share of Boddington's expected capital
costs remains between $0.9 and $1.1 billion.



    
    Batu Hijau            Q2 2007      Q2 2006     YTD 2007     YTD 2006
    Consolidated gold
     sales (000 ounces)      90          134          174           207
    Equity gold sales
     (000 ounces)            44           71           89           110
    Costs applicable
     to sales ($/ounce)    $224         $196         $276          $200
    Consolidated copper
     sales (million pounds)  97          117          188           198
    Equity copper sales
     (million pounds)        48           62           96           105
    Costs applicable to
     sales ($/pound)      $1.40        $0.71        $1.40         $0.75
    Capital expenditures
     ($ million)            $17          $21          $24           $84
    Average realized
     copper price (1)     $3.92        $2.25        $3.34         $2.18
    


    
    (1)  Before treatment and refining charges but after hedge losses and
         provisional pricing mark-to-market adjustments.
    Batu Hijau Operating Performance and Outlook
    
    On May 25, 2007, a minority partner at Batu Hijau fully repaid their loan
and accrued interest, and as a result, the Company's economic interest was
reduced to 45% from 52.875%.  The Company incurred an after-tax charge of $25
million in minority interest expense in the second quarter of 2007 to reflect
the lower economic interest.  The reduction of Newmont's economic interest to
45% would have effectively decreased the Company's December 31, 2006 equity
gold and copper proven and probable reserves by roughly 750,000 ounces and 700
million pounds, respectively.
    Equity gold and copper sales at Batu Hijau decreased in the second
quarter of 2007 to 44,000 ounces and 48 million pounds, respectively, from
71,000 ounces and 62 million pounds, respectively, in the prior year quarter. 
Equity sales decreased primarily due to timing of concentrate shipments at the
end of the second quarter of 2007, as concentrate inventories were
significantly higher compared to the prior year quarter.  Copper production
remained steady quarter over quarter, while gold production decreased 23% due
to lower gold grade compared to the prior year quarter.  Total tons mined
decreased by 24% from the prior year quarter, primarily due to longer hauling
distances.  The waste-to-ore ratio increased to 5.9 in the second quarter of
2007, up from 0.95 in the prior year quarter, in preparation for the next
phase of high- grade ore mining.
    As a result of Newmont's reduced 45% equity interest in Batu Hijau, the
Company now expects equity gold and copper sales of between 210,000 and
230,000 ounces and between 190 and 210 million pounds, respectively, in 2007,
compared with the previous equity guidance of between 230,000 and 250,000
ounces of gold and between 210 and 230 million pounds of copper.  On a
consolidated basis, the Company continues to expect gold and copper sales to
meet or exceed original expectations for 2007.  Fewer waste tons were mined in
the second quarter as compared to the first quarter and will continue to be
lower during the second half of the year as mining progresses through waste
material.
    Total costs applicable to sales increased 38% from the prior year
quarter, primarily due to increased waste stripping and more ore processed
from stockpiles during the second quarter of 2007 compared to the prior year
quarter.  Costs applicable to sales increased 14% per ounce of gold and nearly
doubled per pound of copper in the second quarter of 2007 from 2006, as a
higher proportion of total operating costs were allocated to costs applicable
to sales of copper during the second quarter of 2007 compared to the prior
year 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 the year as more ore tons are expected to be mined during the
remainder of 2007.  Additionally, a higher proportion of total operating costs
could be allocated to costs applicable to sales of gold if gold prices and
gold sales volumes continue to increase at a higher rate than copper prices
and volumes.
    The average realized copper price increased 74% to $3.92 per pound from
$2.25 per pound in the prior year quarter, as copper sales were completely
unhedged in the second quarter of 2007.  Copper sales in the prior year
quarter were fully hedged, which reduced the average realized copper price.
    
    Batu Hijau Capital Projects
    
    Consolidated capital expenditures at Batu Hijau were $17 million during
the second quarter of 2007.  Batu Hijau's consolidated capital expenditures
for the year are expected to be at the lower end or below the current range of
$140 to $150 million, with spending focused primarily on sustaining mine
development for the remainder of the year.


    
    Ahafo                  Q2 2007      Q2 2006     YTD 2007     YTD 2006
    Consolidated gold
     sales (000 ounces)     123            --          248          --
    Equity gold sales
     (000 ounces)           123            --          248          --
    Costs applicable to
     sales ($/ounce)       $384           $--         $362         $--
    Capital expenditures
     ($ million)            $19           $70          $56        $135
    Ahafo Operating Performance and Outlook
    
    Ahafo sold 123,000 ounces in the second quarter of 2007, as ore tons
mined and mill throughput were both in line with expectations.  During the
second quarter, mill ore grades continued to be higher than expected.  The
Company continues to expect gold sales of between 410,000 and 450,000 ounces
in 2007. Potential production opportunities may exist from continued higher
ore grades; however, the risk of increased power rationing during the second
half of the year could offset these benefits.
    Ahafo's costs applicable to sales were $384 per ounce for the second
quarter of 2007, primarily due to lower than anticipated self-generated power
requirements.  Additionally, higher production helped to reduce unit costs
applicable to sales.  Continuing lower than anticipated power costs and higher
than expected ore grades could reduce costs applicable to sales for the year
to be at the lower end or below the expected range of $460 to $500 per ounce.
    Construction of an 80 mega-watt power plant was substantially complete at
the end of the second quarter of 2007, with completion testing progressing
well.  Power production is expected to be available within a month.  As a
result of the mining industry's initiative to install the power plant, the
Ghanaian government has agreed, if required, to ration power proportionately
between participating mines and other industrial and commercial customers.
    
    Ghana Capital Projects
    
    Capital expenditures in Ghana were $19 million in the second quarter.
Capital expenditures for the year are expected to be at the lower end or below
the current range of $180 to $200 million.  For the rest of 2007, capital
projects in Ghana are targeted for surface mining equipment, cyanide recovery,
permitting and resettlement.


    
    Other Operations           Q2 2007     Q2 2006     YTD 2007     YTD 2006
    Consolidated gold sales
     (000 ounces)                 54           65          103          163
    Equity gold sales
     (000 ounces)                 52           60           98          154
    Costs applicable to sales
     ($/ounce)                  $295         $251         $312         $226
    Capital expenditures
     ($ million)                  $5           $5           $8           $7
    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 52,000 ounces
in the second quarter of 2007 from 60,000 ounces in the year ago quarter. Gold
sales decreased due to the completion of mining at Golden Giant, with remnant
sales of 9,000 ounces in the second quarter of 2007, down from 14,000 in the
year ago quarter.  Gold sales at Kori Kollo decreased 23% in the second
quarter of 2007 from 2006.  La Herradura gold sales increased 15% in the
second quarter of 2007 from the prior year quarter, primarily as a result of a
20% increase in ore tons mined and placed on the leach pad.  The Company
expects equity gold sales of between 155,000 and 190,000 ounces in 2007 from
its other operations.
    Costs applicable to sales increased in the second quarter of 2007 to $295
per ounce from $251 per ounce in the prior year quarter.  Costs applicable to
sales increased 19% at Kori Kollo in the second quarter of 2007, primarily due
to lower production and higher waste removal costs.  Costs applicable to sales
increased 16% at La Herradura also due to higher waste removal costs.  The
Company continues to expect costs applicable to sales of between $305 and $325
per ounce for the year from Kori Kollo, La Herradura and Golden Giant.
    
    Cash Flow, Capital and Other
    
    The Company used net cash from continuing operations of $654 million in
the second quarter of 2007, after a $469 million decrease in working capital,
compared to net cash provided from continuing operations of $310 million in
the prior year quarter.  Cash flow used in operations during the second
quarter of 2007 was primarily impacted by the pre-tax settlement of the price-
capped forward sales contracts for $578 million, settlement of pre-acquisition
Australia income taxes of Normandy for $276 million, fewer gold ounces and
copper pounds sold and higher operating costs, partially offset by higher
realized gold and copper prices.
    Capital expenditures for the second quarter of 2007 were $351 million,
primarily for the construction of the power plant and sustaining development
in Nevada ($119 million), construction of the gold mill and leach pad
expansions at Yanacocha in Peru ($58 million), construction of the Boddington
project and other sustaining development in Australia/New Zealand ($129
million), as well as sustaining development in Ghana ($19 million).  The
Company continues to expect consolidated capital expenditures of between $1.8
and $2.0 billion for 2007.  The Company expensed $193 million of depreciation,
depletion and amortization for the second quarter of 2007, and has revised its
depreciation, depletion and amortization outlook for the year to approximately
$750 to $800 million.
    The 2007 tax rate (assuming $650 per ounce gold) was revised upward to
between 42% and 47%.  The tax rate range was revised due to certain second
quarter, one-time transactions that had the impact of creating U.S. net
operating losses, which caused the Company to realize fewer foreign tax
credits for the year, resulting in a higher effective tax rate.
    The Company incurred $36 million of general and administrative expenses
during the second quarter of 2007, with anticipated expenses of between $155
and $165 million for the year.  Including $25 million of net interest expense
during the second quarter of 2007, the Company continues to expect net
interest expense of approximately $95 to $105 million for the year.  Including
$13 million of advanced projects, research and development expenditures during
the second quarter of 2007, the Company continues to expect spending to be
between $85 and $100 million for the year.
    
    Exploration Review
    
    Exploration expenditures for the second quarter of 2007 were $45 million,
compared with $46 million in the prior year quarter.  Near mine expenditures
in the second quarter were $24 million, compared with $28 million in the prior
year quarter.  Greenfield expenditures in the second quarter of 2007 were $15
million, compared with $13 million in the second quarter of 2006.  For 2007,
the Company continues to expect exploration expenditures between $170 and $175
million, with roughly 55% focused on near mine activity, approximately 20%
focused on greenfields initiatives, and the remaining 25% split between
follow-up opportunity funds and technical support.
    Exploration spending in North America is primarily focused on near mine
programs in Nevada on the Carlin Trend, Battle Mountain-Eureka Trend and the
Northern Nevada Rift.  Expenditures for the year are expected to be
approximately $37 million, including $12 million of exploration spending that
occurred during the second quarter.
    Exploration spending in South America is primarily targeted on near mine
programs at Yanacocha in Peru, as well as greenfield projects in the Guiana
Shield in South America and the Andes in Peru.  Including $14 million of
exploration spending during the second quarter, exploration expenditures for
2007 are expected to be approximately $34 million in the region, or
approximately 20% of the Company's total exploration budget.  Oxide target
drilling continued at Maqui Maqui and La Quinua.  In-fill drilling began at
the Company's Merian II and Maraba discoveries at our Nassau Joint Venture in
Suriname.
    Including second quarter expenditures of $6 million in Australia/New
Zealand, exploration spending for 2007 is expected to be approximately $24
million, or approximately 14% of the Company's total exploration budget.
Development drilling at Boddington intensified with up to nine core drill rigs
targeting non-reserve material and reserve expansion.  Deep drilling for
extensions of the Callie deposit in the Tanami will employ three surface core
rigs.  Development drilling from underground platforms at the Jundee mine is
progressing according to schedule.
    Including exploration spending during the second quarter in Indonesia and
other Asia districts, exploration spending for the year is expected to total
approximately 2% of the Company's exploration budget.  Exploration programs in
the region are primarily focused on greenfield initiatives in China and
Indonesia.
    Exploration spending in Africa totaled approximately $4 million during
the second quarter.  Exploration expenditures for the year are anticipated to
be approximately $18 million, or roughly 10% of the Company's total
exploration budget for the year.  Regional exploration programs throughout
2007 will focus on near mine programs in the Sefwi Belt in Ghana, as well as
other greenfield projects in the Greenstone Belts of West Africa.  Drill
programs at Ahafo are exploring possible reserve and non-reserve
mineralization expansions at depth, as well as potential underground targets.


    Statements of Consolidated Income


    
                               Q2          Q2           YTD          YTD
                              2007        2006         2007         2006
                               (unaudited, in millions except per share)
    

    
    Revenues
      Sales - gold, net       $962       $1,091       $2,005       $2,086
      Sales - copper, net      340          202          553          339
                             1,302        1,293        2,558        2,425
    

    
    Costs and expenses
      Costs applicable to
       sales (exclusive of
       loss on settlement of
       price-capped forward
       sales contracts and
       depreciation,
       depletion and
       amortization, shown
       separately below)
        `Gold                  628          544        1,304        1,038
        Copper                 134           84          262          149
      Loss on settlement of
       price-capped forward
       sales contracts         531           --          531           --
      Depreciation, depletion
       and amortization        193          146          381          281
      Exploration               45           46           85           79
    Advanced projects,
     research and development   13           24           29           39
    General and administrative  36           37           73           74
    Other expense, net          53           13           74           27
                             1,633          894        2,739        1,687
    

    
    Other income (expense)
      Other income, net         25            1           35            7
      Interest expense, net    (25)         (23)         (49)         (43)
                                --          (22)         (14)         (36)
    

    
    (Loss) income from
      continuing operations
      before income tax,
      minority interest and
      equity income of
      affiliates              (331)         377         (195)          702
    Income tax benefit
     (expense)                  23         (121)         (21)        (153)
    Minority interest in
     income of consolidated
     subsidiaries              (98)        (128)        (154)        (227)
    (Loss) income from
     continuing operations    (406)         128         (370)         322
    (Loss) income from
     discontinued
     operations             (1,656)          33       (1,624)          48
    Net (loss) income      $(2,062)        $161      $(1,994)        $370
    

    
    Income per common share
      Basic:
        (Loss) income from
         continuing
         operations         $(0.90)       $0.29       $(0.82)       $0.71
        (Loss) income from
         discontinued
         operations          (3.67)        0.07        (3.60)        0.11
        Net (loss) income   $(4.57)       $0.36       $(4.42)       $0.82
    

    
      Diluted:
        (Loss) income from
         continuing
         operations         $(0.90)       $0.29       $(0.82)       $0.71
        (Loss) income from
         discontinued
         operations          (3.67)        0.07        (3.60)        0.11
        Net (loss) income   $(4.57)       $0.36       $(4.42)       $0.82
    Basic weighted-average
     common shares
     outstanding               451          449          451          449
    Diluted weighted-average
     common shares outstanding 454          452          453          451
    Cash dividends declared
     per common share        $0.10        $0.10        $0.20        $0.20
    


    Consolidated Balance Sheets

    
                                                   At June 30, At December 31,
                                                       2007          2006
                                                    (unaudited, in millions)
                         ASSETS
    Cash and cash equivalents                           $668         $1,166
    Marketable securities and other short-term
     investments                                       1,028            109
    Trade receivables                                    228            142
    Accounts receivable                                  138            206
    Inventories                                          406            382
    Stockpiles and ore on leach pads                     337            378
    Deferred income tax assets                           138            156
    Other current assets                                 128             93
      Current assets                                   3,071          2,632
    Property, plant and mine development, net          7,024          6,594
    Investments                                          472          1,319
    Long-term stockpiles and ore on leach pads           795            812
    Deferred income tax assets                           675            799
    Other long-term assets                               177            178
    Goodwill                                           1,320          1,343
    Assets of operations held for sale                   327          1,924
      Total assets                                   $13,861        $15,601
                      LIABILITIES
    Current portion of long-term debt                   $161           $159
    Accounts payable                                     274            340
    Employee-related benefits                            143            182
    Derivative instruments                                --            174
    Income and mining taxes                               91            357
    Other current liabilities                            605            515
      Current liabilities                              1,274          1,727
    Long-term debt                                     2,493          1,752
    Reclamation and remediation liabilities              546            528
    Deferred income tax liabilities                      383            626
    Employee-related benefits                            286            309
    Other long-term liabilities                          161            135
    Liabilities of operations held for sale              108             89
      Total liabilities                                5,251          5,166
    

    
    Minority interest in subsidiaries                  1,308          1,098
                  STOCKHOLDERS' EQUITY
    Common stock                                         683            677
    Additional paid-in capital                         6,738          6,703
    Accumulated other comprehensive income               789            673
    Retained (deficit) earnings                         (908)         1,284
      Total stockholders' equity                       7,302          9,337
      Total liabilities and stockholders' equity     $13,861        $15,601
    


    Statements of Consolidated Cash Flow

    
                           Q2 2007       Q2 2006    YTD 2007      YTD 2006
                                   (unaudited, in millions)
    

    
    Operating activities:
      Net (loss) income    $(2,062)        $161      $(1,994)        $370
      Adjustments to
       reconcile net
       (loss) income to
        net cash from
        continuing
        operations:
          Depreciation,
           depletion and
           amortization        193          146          381          281
          Revenue from
           prepaid forward
           sales obligation     --          (48)          --          (48)
          Loss (income)
           from discontinued
           operations        1,674          (33)       1,624          (48)
          Accretion of
           accumulated
           reclamation
           obligations           9            7           19           14
          Deferred income
           taxes              (144)          (5)        (143)         (77)
          Minority interest
           expense              98          128          154          227
          Gain on asset
           sales, net           (2)          (9)          (4)         (10)
          Hedge (gain) loss,
           net                  (4)          83           (7)          74
          Other operating
           adjustments and
           write-downs          53           53           79           90
        Net cash (used in)
         provided from
         continuing
         operations before net
         change in operating
         assets and
         liabilities          (185)         483          109          873
        Net change in
         operating assets
         and liabilities      (469)        (173)        (733)        (351)
    Net cash (used in)
     provided from
     continuing operations    (654)         310         (624)         522
    Net cash provided from
     discontinued operations    33           26           61           49
    Net cash (used in)
     provided from
     operations               (621)         336        (563)          571
    Investing activities:
      Additions to property,
       plant and mine
       development            (351)        (334)       (713)         (700)
      Investments in
       marketable debt
       securities               --         (386)       (124)       (1,057)
      Proceeds from sale
       of marketable
       debt securities          10          561         134         1,530
      Acquisitions              --           --          --          (187)
      Cash received on
       repayment of Batu
       Hijau carried interest  161           --         161            --
      Other                      4            4           5             6
    Net cash used in
     investing activities of
     continuing operations    (176)        (155)       (537)         (408)
    Net cash provided from
     (used in) investing
     activities of
     discontinued operations    72          (21)         43           (25)
    Net cash used in
     investing activities     (104)        (176)       (494)         (433)
    Financing activities:
      Proceeds from
       debt, net             1,161           99       1,161            99
      Repayment of debt       (397)         (43)       (418)          (63)
      Dividends paid to
       common stockholders     (45)         (45)        (90)          (90)
      Dividends paid to
       minority interests     (114)         (44)       (115)          (89)
      Proceeds from stock
       issuance                  5           19          14            57
      Change in restricted
       cash and other           (6)           6           2            (2)
    Net cash provided from
     (used in) financing
     activities                604           (8)        554           (88)
    Effect of exchange rate
     changes on cash             3            4           5             3
    Net change in cash
     and cash equivalents     (118)         156        (498)           53
    Cash and cash
     equivalents at
     beginning of period       786          979       1,166         1,082
    Cash and cash
     equivalents at end
     of period                $668       $1,135        $668        $1,135
    


    Operating Statistics Summary

    
                                          Q2 2007   Q2 2006  YTD 2007 YTD 2006
    Gold
    Consolidated ounces sold (000):
      Nevada (1)                              531      543    1,091    1,078
      Yanacocha                               312      785      767    1,555
      Batu Hijau                               90      134      174      207
      Australia/New Zealand
             Tanami                           130       91      243      199
             Kalgoorlie                        71       82      166      176
             Jundee                            71       78      133      140
             Pajingo                           39       35       87       67
             Waihi                             27       30       41       67
                                              338      316      670      649
    

    Ahafo                                   123       --      248       --

    
      Other
             Kori Kollo                        22       31       46       75
             La Herradura                      23       20       45       40
             Golden Giant                       9       14       12       48
                                               54       65      103      163
                                            1,448    1,843    3,053    3,652
    

    
    Equity ounces sold (000):
      Nevada (1)                              531      496    1,091      985
      Yanacocha                               160      403      394      798
      Batu Hijau                               44       71       89      110
      Australia/New Zealand
             Tanami                           130       91      243      199
             Kalgoorlie                        71       82      166      176
             Jundee                            71       78      133      140
             Pajingo                           39       35       87       67
             Waihi                             27       30       41       67
                                              338      316      670      649
    

    Ahafo                                   123       --      248       --

    
      Other
             Kori Kollo                        20       26       41       66
             La Herradura                      23       20       45       40
             Golden Giant                       9       14       12       48
                                               52       60       98      154
                                            1,248    1,346    2,590    2,696
    

    
    Discontinued Operations
             Zarafshan                         --       27       --       56
             Holloway                          --       11       --       24
                                            1,248    1,384    2,590    2,776
    

    
     Copper
       Batu Hijau (pounds sold in
        millions):
             Consolidated                      97      117      188      198
             Equity                            48       62       96      105
    

    
    (1)  Includes sales from Phoenix and Leeville start-up activities which
         are not included in Revenue, Costs applicable to sales and
         Depreciation, depletion and amortization per ounces 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
                                          Q2 2007  Q2 2006  YTD 2007 YTD 2006
     Tons mined (000 dry short tons):
       Open pit
        Ore                                10,655    7,759    21,229   16,510
        Waste                              52,155   37,266   100,349   76,569
          Total                            62,810   45,025   121,578   93,079
       Underground                            508      284       992      652
     Tons milled/processed (000 dry short
      tons):
        Mill                                5,870    3,821    12,083    7,417
        Leach                               2,509    5,353     5,864   11,956
     Average ore grade (oz/ton):
       Mill                                 0.100    0.128     0.099    0.134
       Leach                                0.037    0.025     0.035    0.024
     Average mill recovery rate              83.0%    83.9%     82.2%    82.9%
     Gold ounces produced (thousands):
       Mill                                   450      434       936      882
       Leach                                   80       82       156      159
       Incremental start-up                    --       23        --       37
         Consolidated                         530      539     1,092    1,078
         Equity                               530      491     1,092      983
     Gold ounces sold (thousands):
       Consolidated  (1)                      531      543     1,091    1,078
       Equity (1)                             531      496     1,091      985
    

    
     Gold production costs (millions):
       Costs applicable to sales             $258     $234      $534     $440
       Depreciation, depletion and
        amortization                          $66      $35      $121      $71
     Gold production costs (per ounce
      sold):
        Direct mining and production costs   $495     $450      $503     $419
        By-product credits                    (29)     (12)      (29)     (11)
        Royalties and production taxes         17        9        13       12
        Reclamation/accretion expense           2        3         2        3
          Costs applicable to sales          $485     $450      $489     $423
          Depreciation, depletion, and
           amortization                      $124      $68      $111      $68
    

    
    (1)  Includes sales 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

    Q2 2007  Q2 2006  YTD 2007  YTD 2006

    
    Mine production:
    Open pit ore mined (000 dry short
     tons):
       Carlin                               4,822    4,950    10,045   10,270
       Phoenix                              3,198       --     6,121       --
       Twin Creeks                          2,635    1,986     5,063    4,458
       Lone Tree                               --      823        --    1,782
                                           10,655    7,759    21,229   16,510
       Average ore grade (oz/ton)           0.062    0.045     0.059    0.044
    

    
    Open pit waste mined (000 dry short
     tons):
       Carlin                              28,263   18,277    52,347   36,638
       Phoenix                             11,370       --    23,576       --
       Twin Creeks                         12,522   15,210    24,426   32,212
       Lone Tree                               --    3,779        --    7,719
                                           52,155   37,266   100,349   76,569
    

    
    Underground ore mined (000 dry short
     tons):
       Carlin - Carlin East                    74       17       142       81
       Carlin - Deep Post                      70       92       155      207
       Carlin - Chukar                        114       63       193      136
       Carlin - Leeville                      133       --       255       --
       Midas                                   82       75       179      151
       Turquoise Ridge                         35       37        68       77
    Total tons mined                          508      284       992      652
    Average Grade (ounce per ton)           0.387    0.468     0.398    0.475
    

    
    Mill throughput (000 dry short tons):
       Carlin - Mill 5                      1,358    1,205     2,587    2,284
       Carlin - Mill 6                        600      526     1,415    1,194
       Twin Creeks - Juniper                  245      234       485      470
       Twin Creeks - Sage                     810      838     1,575    1,628
       Lone Tree                              284      711       886    1,400
       Phoenix                              2,425       --     4,855       --
       Midas                                   80       75       179      152
       Other                                   68      232       101      289
                                            5,870    3,821    12,083    7,417
       Average ore grade (oz/ton)           0.100    0.128     0.099    0.134
       Average mill recovery rate            83.0%    83.9%     82.2%    82.9%
    


    Operating Statistics - Yanacocha

    
                                          Q2 2007  Q2 2006 YTD 2007  YTD 2006
     Tons mined (000 dry short tons):
       Ore                                 20,650   29,817   37,198    60,899
       Waste                               32,123   25,542   61,783    44,835
         Total                             52,773   55,359   98,981   105,734
     Tons processed (000 dry short tons)   20,650   29,817   37,198    60,907
     Average ore grade (oz/ton)             0.017    0.032    0.015     0.034
     Gold ounces produced (thousands):
       Consolidated                           303      751      721     1,551
       Equity                                 155      385      370       796
     Gold ounces sold (thousands):
       Consolidated                           312      785      767     1,555
       Equity                                 160      403      394       798
    

    
     Gold production costs (millions):
       Costs applicable to sales             $133     $145     $274      $269
       Depreciation, depletion and
        amortization                          $40      $49      $82       $92
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $430     $194     $364      $180
       By-product credits                     (23)     (16)     (25)      (14)
       Royalties and production taxes          12        4       12         4
       Reclamation/accretion expense            7        3        6         3
         Costs applicable to sales           $426     $185     $357      $173
         Depreciation, depletion, and
          amortization                       $128      $61     $107       $59
    


    Operating Statistics - Batu Hijau

    
                                         Q2 2007 Q2 2006 YTD 2007 YTD 2006
     Tons mined (000 dry short tons):
       Ore                                 8,108  37,361    9,640   68,552
       Waste                              47,609  35,489  109,792   64,487
         Total                            55,717  72,850  119,432  133,039
     Tons milled (000 dry short tons)     11,641  12,080   23,621   22,909
     Average ore grade:
       Gold (oz/ton)                       0.010   0.013    0.010    0.011
       Copper                               0.56%   0.52%    0.53%    0.51%
     Average mill recovery rate:
       Gold                                80.7%   81.7%    80.3%    79.4%
       Copper                              83.4%   86.2%    82.0%    85.8%
     Gold ounces produced (thousands):
       Consolidated                           98     126      186      209
       Equity                                 49      67       95      111
     Gold ounces sold (thousands):
       Consolidated                           90     134      174      207
       Equity                                 44      71       89      110
     Copper pounds produced (millions):
       Consolidated                          109     109      205      203
       Equity                                 54      58      105      108
     Copper pounds sold (millions):
       Consolidated                           97     117      188      198
       Equity                                 48      62       96      105
    

    
     Gold production costs (millions):
       Costs applicable to sales             $20     $27      $48      $42
       Depreciation, depletion and
        amortization                          $5      $6      $11      $10
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $214    $189     $266     $194
       By-product credits                     (6)     (8)      (7)      (8)
       Royalties and production taxes         14      13       14       12
       Reclamation/accretion expense           2       2        3        2
         Costs applicable to sales          $224    $196     $276     $200
         Depreciation, depletion, and
          amortization                       $52     $46      $63      $48
    

    
     Copper production costs (millions):
       Costs applicable to sales            $134     $84     $262     $149
       Depreciation, depletion and
        amortization                         $26     $18      $54      $34
     Copper production costs (per pound
      sold):
       Direct mining and production costs  $1.41   $0.71    $1.41    $0.75
       By-product credits                  (0.04)  (0.03)   (0.04)   (0.03)
       Royalties and production taxes       0.02    0.02     0.02     0.02
       Reclamation/accretion expense        0.01    0.01     0.01     0.01
         Costs applicable to sales         $1.40   $0.71    $1.40    $0.75
         Depreciation, depletion, and
          amortization                     $0.28   $0.16    $0.29    $0.17
    


    Operating Statistics - Ahafo

    
                                          Q2 2007  Q2 2006  YTD 2007  YTD 2006
     Tons mined (000 dry short tons):
       Ore                                   2,205      --     4,750     --
       Waste                                11,390      --    19,628     --
         Total                              13,595      --    24,378     --
     Tons milled (000 dry short tons):       2,076      --     4,258     --
     Average ore grade (oz/ton)              0.063      --     0.062     --
     Average mill recovery rate               92.7%     --      92.8%    --
     Gold ounces produced (thousands):
       Consolidated                            122      --       250     --
       Equity                                  122      --       250     --
     Gold ounces sold (thousands):
       Consolidated                            123      --       248     --
       Equity                                  123      --       248     --
    

    
     Gold production costs (millions):
       Costs applicable to sales               $47     $--       $90    $--
       Depreciation, depletion and
        amortization                           $13     $--       $23    $--
     Gold production costs (per ounce
      sold):
       Direct mining and production costs     $364     $--      $342    $--
       By-product credits                       (1)     --        (1)    --
       Royalties and production taxes           20      --        20     --
       Reclamation/accretion expense             1      --         1     --
         Costs applicable to sales            $384     $--      $362    $--
         Depreciation, depletion, and
          amortization                        $108     $--       $93    $--
    


    Operating Statistics - Pajingo and Jundee

    
                                          Q2 2007  Q2 2006  YTD 2007  YTD 2006
     PAJINGO
     Tons mined (000 dry short tons)          157      138      304      252
     Tons milled (000 dry short tons)         154      140      291      255
     Average ore grade (oz/ton)             0.258    0.252    0.285    0.261
     Average mill recovery rate              96.7%    96.8%    96.6%    96.9%
     Gold ounces produced (thousands):
       Consolidated                            39       34       84       66
       Equity                                  39       34       84       66
     Gold ounces sold (thousands):
       Consolidated                            39       35       87       67
       Equity                                  39       35       87       67
    

    
     Gold production costs (millions):
       Costs applicable to sales              $17      $16      $36      $30
       Depreciation, depletion and
        amortization                           $7       $6      $16      $11
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $432     $435     $404     $434
       By-product credits                     (11)     (16)     (12)     (14)
       Royalties and production taxes          19       17       19       16
       Reclamation/accretion expense            3        3        3        3
         Costs applicable to sales           $443     $439     $414     $439
         Depreciation, depletion, and
          amortization                       $180     $167     $179     $158
    

    
     JUNDEE
     Tons mined (000 dry short tons):
       Open pit
         Ore                                  306      383      491      541
         Waste                              1,929    1,202    3,028    2,104
           Total                            2,235    1,585    3,519    2,645
       Underground                            259      316      525      589
     Tons milled (000 dry short tons)         477      636      925    1,193
     Average ore grade (oz/ton)             0.166    0.130    0.149    0.126
     Average mill recovery rate              91.8%    91.8%    90.3%    91.8%
     Gold ounces produced (thousands):
       Consolidated                            72       77      126      140
       Equity                                  72       77      126      140
     Gold ounces sold (thousands):
       Consolidated                            71       78      133      140
       Equity                                  71       78      133      140
    

    
     Gold production costs (millions):
       Costs applicable to sales              $37      $27      $73      $53
       Depreciation, depletion and
        amortization                           $6       $6      $12      $11
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $498     $326     $530     $359
       By-product credits                      (2)      (2)      (2)      (1)
       Royalties and production taxes          18       15       16       16
       Reclamation/accretion expense            7        5        7        6
         Costs applicable to sales           $521     $344     $551     $380
         Depreciation, depletion, and
          amortization                        $84      $78      $89      $78
    


    Operating Statistics - Tanami and Kalgoorlie

    
                                          Q2 2007  Q2 2006  YTD 2007  YTD 2006
     TANAMI
     Tons mined (000 dry short tons)          505      523    1,008    1,046
     Tons milled (000 dry short tons)         798      811    1,511    1,603
     Average ore grade (oz/ton)             0.169    0.117    0.159    0.130
     Average mill recovery rate              95.4%    94.6%    95.5%    95.1%
     Gold ounces produced (thousands):
       Consolidated                           128       90      230      198
       Equity                                 128       90      230      198
     Gold ounces sold (thousands):
       Consolidated                           130       91      243      199
       Equity                                 130       91      243      199
    

    
     Gold production costs (millions):
       Costs applicable to sales              $51      $36     $101      $74
       Depreciation, depletion and
        amortization                          $10       $6      $19      $13
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $315     $353     $345     $324
       By-product credits                      (1)      (1)      (1)      (1)
       Royalties and production taxes          75       48       68       46
       Reclamation/accretion expense            2        3        2        3
         Costs applicable to sales           $391     $403     $414     $372
         Depreciation, depletion, and
          amortization                        $75      $76      $78      $69
    

    
     KALGOORLIE
     Tons mined (000 dry short tons):
       Open pit
         Ore                                2,095    1,777    3,299    3,594
         Waste                              8,620   10,031   17,068   19,476
           Total                           10,715   11,808   20,367   23,070
       Underground                             47       51      100      104
     Tons milled (000 dry short tons)       1,645    1,477    3,245    3,175
     Average ore grade (oz/ton)             0.058    0.065    0.056    0.064
     Average mill recovery rate              85.9%    85.8%    85.1%    84.1%
     Gold ounces produced (thousands):
       Consolidated                            72       84      157      176
       Equity                                  72       84      157      176
     Gold ounces sold (thousands):
       Consolidated                            71       82      166      176
       Equity                                  71       82      166      176
    

    
     Gold production costs (millions):
       Costs applicable to sales              $37      $39      $95      $83
       Depreciation, depletion and
        amortization                           $5       $7      $13      $13
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $488     $464     $549     $455
       By-product credits                      (3)      (3)      (3)      (3)
       Royalties and production taxes          19       16       16       15
       Reclamation/accretion expense           13        6       11        6
     Costs applicable to sales               $517     $483     $573     $473
     Depreciation, depletion, and
      amortization                            $68      $76      $80      $73
    


    Operating Statistics - Waihi (Martha) and Golden Giant

    
                                           Q2 2007  Q2 2006  YTD 2007 YTD 2006
     WAIHI (MARTHA)
     Tons mined (000 dry short tons):
       Open pit
         Ore                                   28      143       28      717
         Waste                              1,113       --    2,368       75
           Total                            1,141      143    2,396      792
       Underground                             55       28      111       47
     Tons milled (000 dry short tons)          84      313      101      615
     Average ore grade (oz/ton)             0.378    0.112    0.365    0.116
     Average mill recovery rate              88.1%    93.8%    88.4%    94.1%
     Gold ounces produced (thousands):
       Consolidated                            29       31       33       69
       Equity                                  29       31       33       69
     Gold ounces sold (thousands):
       Consolidated                            27       30       41       67
       Equity                                  27       30       41       67
    

    
     Gold production costs (millions):
       Costs applicable to sales              $13       $5      $22      $11
       Depreciation, depletion and
        amortization                           $6       $3       $9       $6
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $472     $237     $541     $241
       By-product credits                     (27)     (98)     (28)     (85)
       Royalties and production taxes           7       --        7       --
       Reclamation/accretion expense            8        7       10        6
         Costs applicable to sales           $460     $146     $530     $162
         Depreciation, depletion, and
          amortization                       $221      $91     $228      $88
    

    
     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                --      0.0%      --     96.9%
     Gold ounces produced (thousands):
       Consolidated                             9       14       12       48
       Equity                                   9       14       12       48
     Gold ounces sold (thousands):
       Consolidated                             9       14       12       48
       Equity                                   9       14       12       48
    

    
     Gold production costs (millions):
       Costs applicable to sales               $1       $2       $2      $10
       Depreciation, depletion and
        amortization                          $--      $--      $--       $1
     Gold production costs (per ounce
      sold):
       Direct mining and production costs    $185     $142     $188     $195
       By-product credits                      (2)      (1)      (3)      (1)
       Royalties and production taxes         (12)      --       (9)      --
       Reclamation/accretion expense           16       16       29        9
         Costs applicable to sales           $187     $157     $205     $203
         Depreciation, depletion, and
          amortization                        $--      $--      $--      $12
    


    Operating Statistics - Kori Kollo and La Herradura

    
                                         Q2 2007  Q2 2006  YTD 2007 YTD 2006
     KORI KOLLO
     Tons mined (000 dry short tons):
       Ore                                 2,239   2,059    4,177    5,419
       Waste                               3,672   3,560    7,222    5,906
         Total                             5,911   5,619   11,399   11,325
     Tons processed (000 dry short tons)   2,239   2,059    4,177    5,419
     Average ore grade (oz/ton)            0.019   0.020    0.020    0.022
     Gold ounces produced (thousands):
       Consolidated                           22      34       47       78
       Equity                                 19      30       41       69
     Gold ounces sold (thousands):
       Consolidated                           22      31       46       75
       Equity                                 20      26       41       66
    

    
     Gold production costs (millions):
       Costs applicable to sales              $9     $10      $17      $17
       Depreciation, depletion and
        amortization                          $2      $2       $5       $4
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $377    $185     $365     $159
       By-product credits                    (23)    (14)     (22)     (11)
       Royalties and production taxes         --     128       --       71
       Reclamation/accretion expense          15      10       15        8
         Costs applicable to sales          $369    $309     $358     $227
         Depreciation, depletion, and
          amortization                      $113     $67     $110      $56
    

    
     LA HERRADURA
     Tons mined (000 dry short tons):
       Ore                                 1,292   1,079    2,609    2,016
       Waste                               4,376   3,418    8,521    6,211
         Total                             5,668   4,497   11,130    8,227
     Tons processed (000 dry short tons)   1,292   1,079    2,609    2,016
     Average ore grade (oz/ton)            0.022   0.023    0.022    0.023
     Gold ounces produced (thousands):
       Consolidated                           23      20       45       40
       Equity                                 23      20       45       40
     Gold ounces sold (thousands):
       Consolidated                           23      20       45       40
       Equity                                 23      20       45       40
    

    
     Gold production costs (millions):
       Costs applicable to sales              $6      $4      $13      $10
       Depreciation, depletion and
        amortization                          $1      $2       $3       $4
     Gold production costs (per ounce
      sold):
       Direct mining and production costs   $279    $229     $314     $252
       By-product credits                    (15)     (2)     (21)      (3)
       Royalties and production taxes         --      --       --       --
       Reclamation/accretion expense           1       2        1        2
         Costs applicable to sales          $265    $229     $294     $251
         Depreciation, depletion, and
          amortization                       $43     $98      $76      $98
    
    The Company's second quarter earnings conference call and web cast
presentation will be held on August 2, 2007 beginning at 4:00 p.m. Eastern
Time (2:00 p.m. Mountain Time).  To participate:

    
    Dial-In Number:      210.839.8500
    Leader:              Randy Engel
    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, royalty and dividend
income, tax rates and expenses; (iv) estimates regarding timing of future
development, construction, production or closure activities; and (v)
statements regarding future exploration results and the replacement of
reserves. 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, Randy Engel, +1-303-837-6033, 
randy.engel@newmont.com, or John Seaberg, +1-303-837-5743, 
john.seaberg@newmont.com, or Media, Omar Jabara, +1-303-837-5114, 
omar.jabara@newmont.com, all of Newmont Web Site: http://www.newmont.com

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Newmont Mining Corporation

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