May 15, 2002
Newmont Mining has posted a net loss of USD10.9 million, after a noncash, after tax mark-to-market gain from derivatives of USD12.3 million for the first quarter from USD481.2 million in gold sales, compared with a net loss of USD39.1 million for the first quarter of 2001, from USD424.1 million in gold sales. Newmont's equity gold sales increased to 1.46 million equity ounces from 1.42 million equity ounces in the year earlier quarter. The company's total cash costs increased to USD196 per ounce in the quarter from USD176 per ounce for the first quarter 2001 -- the higher cash costs attributed to a drop in Nevada gold production, which was impacted by a 16% lower ore grade and lower mill throughput. Total production costs of USD262 per ounce were realized. Newmont's Nevada gold sales declined by 123,500 ounces to 606,100 ounces for the quarter resulting in an increase in total cash costs to USD239 per ounce from USD200 in the year ago quarter. Gold sales at Yanacocha increased to 483,200 ounces (248,100 equity ounces), with an increase in cash costs to USD137 per ounce from USD106 with lower grades and the ongoing commissioning of the new crushing and agglomeration operations at La Quinua. Gold sales from the Australian operations totaled 238,700 attributable ounces at a total cash cost of USD170 per ounce. Batu Hijau sold 120.2 million pounds of copper (67.6 million equity pounds) at a total cash cost of USD0.46 per pound in the quarter. The Golden Grove mine in Australia sold 10.1 million pounds of copper at a total cash cost of USD0.59 per pound. Newmont expects to generate approximately USD400 million from the sale of noncore assets this year, of which USD210 million has already been realized. Newmont forecasts sales this year will be 7.5 million ounces of gold at a total cash cost of approximately USD180 per ounce.
