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Newmont Announces Fourth Quarter and Full Year 2014 Operating and Financial Results and 2015 Outlook

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Newmont Mining Corporation (NYSE:NEM) (“Newmont” or “the Company”) announced fourth quarter and full year 2014 results, including $1.5 billion in operating cash flow, $524 million of cost savings1 and production in line with guidance for the year.

  • Net income: Reported quarterly and full year net income attributable to shareholders from continuing operations of $39 million or $0.08 per share for the fourth quarter and $548 million or $1.10 per share for the full year; adjusted net income2 was $86 million or $0.17 per share for the quarter and $545 million or $1.09 per share for the year
  • Consolidated cash flow: Generated cash flow from continuing operations of $562 million in the fourth quarter and $1.5 billion for 2014; free cash flow was $218 million in the fourth quarter and $341 million for the year, a $680 million improvement over 2013
  • Consolidated adjusted EBITDA3: Delivered earnings before interest, taxes, depreciation and amortization (EBITDA) of $652 million in the fourth quarter and $2.1 billion for the full year
  • Gold all-in sustaining costs (AISC)4: Lowered gold AISC to $927 per ounce in the fourth quarter, representing a second consecutive quarter of maintaining AISC below $1,000 per ounce; and $1,002 for the full year, a 10% improvement over 2013
  • Gold costs applicable to sales (CAS): Reduced gold CAS to $631 per ounce in the fourth quarter, and $706 per ounce for the full year, representing a 9% improvement over 2013
  • Attributable production: Produced 1.26 million ounces of gold in the fourth quarter and remained in line with guidance at 4.85 million ounces of gold for the year
  • Shareholder returns: Declared a fourth quarter dividend of $0.025 per share in accordance with the Company’s gold price-linked dividend policy5
  • Outlook6: Improved 2015 outlook through strong operating performance and expect attributable gold production of between 4.6 to 4.9 million ounces in 2015, at CAS of between $660 and $710 per ounce and AISC of between $960 and $1,020 per ounce in 2015

“We delivered on our commitment to improve operating costs and efficiencies, strengthen our balance sheet and progress our most promising projects in 2014. Highlights included generating $1.5 billion in cash from continuing operations and lowering our adjusted consolidated all-in sustaining costs by more than $500 million. We also generated almost $800 million in cash from asset sales while maintaining attributable gold production well within our original guidance range. Strong results allowed us to move forward with the development of Merian in Suriname, advance our Turf Vent Shaft project in Nevada, and improve our outlook. In 2015, we will continue to deliver improved costs and efficiency, fund our most promising projects and strengthen our balance sheet,” said Gary J. Goldberg, President and Chief Executive Officer.

1

Based upon Adjusted All-in sustaining costs. AISC is a Non-GAAP measure. See page 20 for reconciliation.

2

Non-GAAP measure. See page 10 for reconciliation.

3

Non-GAAP measure. See page 10-11 for reconciliation.

4

Non-GAAP measure. See pages 14-19 for reconciliation to costs applicable to sales.

5

Such policy is non-binding; declaration of future dividends remains subject to approval and discretion of the Board of Directors.

6

Outlook constitutes forward-looking statements, which are subject to risk and uncertainties. See Cautionary Note on page 22.

Fourth Quarter and Full Year 2014 Results

Net income attributable to shareholders from continuing operations was $39 million or $0.08 per share for the fourth quarter and $548 million or $1.10 per share for the full year, which compares favorably to $(1.2) billion or $(2.39) per share for the prior year quarter and $(2.6) billion and $(5.21) per share for 2013. Adjusted net income was $86 million or $0.17 per share in the fourth quarter and $545 million, or $1.09 per basic share for the full year, compared with $143 million or $0.28 per share for the prior year quarter, and $623 million, or $1.25 per basic share in 2013. The largest adjustments to net income in the fourth quarter include a loss from discontinued operations, as well as asset sales and tax valuation allowances primarily related to the sale of Newmont’s stake in the Penmont joint venture completed October 7, 2014.

Consolidated cash flow from continuing operations was $562 million in the fourth quarter and $1.5 billion for the full year. Free cash flow was $218 million in the fourth quarter and $341 million for the full year, a $680 million improvement over 2013. The Company held $2.4 billion of consolidated cash on its balance sheet at year-end 2014, up 50% from the prior year. Newmont strives to maintain a healthy balance between investing in profitable growth, reducing debt and returning cash to shareholders. Nearly 50% of the Company’s cash is held domestically with the remainder held by offshore subsidiaries to fund local growth, repay regional debt and for potential repatriation.

Revenue totaled $2.0 billion in the fourth quarter compared to $2.2 billion in the prior year quarter, and $7.3 billion in 2014 compared to $8.4 billion in 2013, due primarily to lower gold and copper prices and divestments.

Average realized price was $1,194 per ounce for gold for the fourth quarter, down from $1,267 in the prior year quarter; and $1,258 for the year, down from $1,393 in 2013. Average realized copper price per pound was $2.55 for the fourth quarter, down from $2.96 in the prior year quarter; and $2.65 for the year, down from $2.98 in 2013.

Attributable production was 1.26 million ounces of gold in the fourth quarter, compared to 1.45 million ounces in the prior year quarter, due mainly to the impact of divestments; and 4.85 million ounces for the year, compared to 5.07 million ounces in 2013. Absent the impact of divestments, gold production was in line with 2013 levels. Increases were driven by a full year of production at Akyem and higher grades and ore recoveries at Batu Hijau. These helped offset decreases in North America due to planned stripping at Carlin and Twin Creeks and divestment of Midas and La Herradura; lower Australia production associated with the sale of Jundee; and declines in South America due to lower ore on leach pads and resulting decreases in leach recoveries.

Attributable copper production was 28,700 tonnes in the fourth quarter, compared to 21,600 tonnes in the prior year quarter, and 86,500 tonnes for the full year, up from 81,400 tonnes in 2013. Copper production increased 6% year on year due to a full year of production from Phoenix Copper Leach and slightly higher copper production at Boddington, offsetting lower than planned production at Batu Hijau resulting from a four month shut-down due to export permit issues.

AISC was $927 per gold ounce in the fourth quarter, down from $1,043 in the prior year quarter; and $1,002 per ounce in 2014, down from $1,113 in 2013. Total gold AISC came in below 2014 guidance due to strong operational performance and lower sustaining capital expenditures. Copper AISC was $2.39 per pound in the fourth quarter, down from $4.74 in the prior year quarter, and $3.65 for the full year, down from $5.07 in 2013.

CAS was $631 per gold ounce in the fourth quarter, down from $766 per ounce in the prior year quarter; and $706 per ounce for the year, down from $772 per ounce in 2013. These improvements were driven by ongoing cost and efficiency gains across the portfolio, a full year of lower cost production at Akyem, lower production costs and lower inventory adjustments at Batu Hijau. Gold CAS in the Americas was slightly higher due mainly to planned stripping campaigns at Carlin and Yanacocha. Copper CAS was $1.86 per pound in the fourth quarter, down from $3.82 in the prior year quarter; and $2.88 per pound for the year, down from $4.12 in 2013.

Capital expenditures for the fourth quarter were $344 million, of which $233 million was sustaining capital. Full year capital spend was about 6% below guidance at $1.1 billion, of which $810 million was sustaining capital. Development capital primarily went to build the Turf Vent Shaft in Nevada and Merian in Suriname. Exploration and advanced projects of $325 million also came in lower than full year guidance. Total general and administrative and depreciation and amortization expenses met guidance, at $186 million and $1.2 billion, respectively.

Three Months Ended December 31, Years Ended December 31,
2014 2013 %

Change

2014 2013

%
Change

Consolidated Sales (koz, Mlbs)
Consolidated gold ounces sold 1,426 1,541 -7 % 5,240 5,489 -5 %
Consolidated copper pounds sold 123 77 60 % 264 258 2 %
Average Realized Price ($/oz, $/lb)
Average realized gold price $ 1,194 $ 1,267 -6 % $ 1,258 $ 1,393 -10 %
Average realized copper price $ 2.55 $ 2.96 -14 % $ 2.65 $ 2.98 -11 %
Attributable Production (koz, kt)
North America 396 557 -29 % 1,631 1,951 -16 %
South America 201 111 81 % 565 588 -4 %
Australia/New Zealand 404 483 -16 % 1,698 1,804 -6 %
Indonesia 21 6 276 % 37 23 61 %
Africa 239 291 -18 % 914 699 31 %
Total Gold 1,261 1,448 -13 % 4,845 5,065 -4 %
North America 5.2 4.6 13 % 20.9 15.8 32 %
Australia/New Zealand 8.4 7.5 12 % 31.2 30.1 4 %
Indonesia 15.1 10.0 51 % 34.4 35.5 -3 %
Total Copper 28.7 22.1 30 % 86.5 81.4 6 %
CAS Consolidated ($/oz, $/lb)
North America $ 756 $ 779 -3 % $ 759 $ 711 7 %
South America 409 882 -54 % 687 671 2 %
Australia/New Zealand 757 892 -15 % 785 966 -19 %
Indonesia 780 1,946 -60 % 1,123 2,332 -52 %
Africa 488 393 24 % 456 487 -6 %
Total Gold $ 631 $ 766 -18 % $ 706 $ 772 -9 %
North America $ 2.64 $ 1.75 51 % $ 2.36 $ 1.74 36 %
Australia/New Zealand 2.10 3.03 -31 % 2.38 2.75 -13 %
Indonesia 1.72 4.36 -61 % 3.24 5.17 -37 %
Total Copper $ 1.86 $ 3.82 -51 % $ 2.88 $ 4.12 -30 %
AISC Consolidated ($/oz, $/lb)
North America $ 1,010 $ 969 4 % $ 1,007 $ 977 3 %
South America 650 1,360 -52 % 988 1,041 -5 %
Australia/New Zealand 978 1,097 -11 % 975 1,176 -17 %
Indonesia 958 2,000 -52 % 1,458 2,804 -48 %
Africa 722 521 39 % 647 784 -17 %
Total Gold $ 927 $ 1,043 -11 % $ 1,002 $ 1,113 -10 %
North America $ 2.82 $ 3.00 -6 % $ 2.83 $ 2.38 19 %
Australia/New Zealand 2.90 3.78 -23 % 3.09 3.35 -8 %
Indonesia 2.22 5.22 -57 % 4.14 6.34 -35 %
Total Copper $ 2.39 $ 4.74 -50 % $ 3.65 $ 5.07 -28 %

2015 – 2017 OUTLOOK

Attributable gold production is expected to increase steadily from between 4.6 and 4.9 million ounces in 2015 to between 4.7 and 5.1 million ounces by 2017. New production at Merian and higher grades in Nevada and Indonesia are expected to offset lower grades at Yanacocha and Ahafo. The remainder of the portfolio is expected to deliver steady and profitable production.

  • North America production is expected to increase from between 1.5 and 1.6 million ounces in 2015 to between 1.6 and 1.7 million ounces in 2016 and 2017, benefitting from Turf Vent Shaft completion, and lower stripping at Carlin. Potential development of Long Canyon Phase 1 represents additional upside.
  • South America production is expected to decline from between 510,000 and 560,000 ounces in 2015 to between 450,000 and 550,000 ounces in 2016, before rising to between 650,000 and 750,000 ounces in 2017 as the first full year of production at Merian offsets the impact of maturing operations at Yanacocha.
  • Asia Pacific production is expected to remain stable at between 1.8 and 2.0 million ounces from 2015 through 2017. Productivity improvements at Tanami and higher grades at Batu Hijau offset production declines at Waihi as the mine nears the end of its current reserve life. Potential development of the Tanami Expansion project represents additional upside.
  • Africa production, excluding the impact of potential development of the Ahafo Mill Expansion, is expected to decline from between 740,000 and 800,000 ounces in 2015 and 2016 to between 625,000 and 675,000 ounces in 2017, due primarily to lower grades at Ahafo.

Attributable copper production is expected to be between 130,000 and 160,000 tonnes in 2015 and level out to between 115,000 and 135,000 tonnes in 2016 and 2017. The Company expects to mine higher grade Phase 6 ore at Batu Hijau throughout the period; however, in late 2016, lower grade stockpiled ore is expected to be processed for several months during a pit dewatering sequence at Batu Hijau. Production at Phoenix Copper Leach and Boddington is expected to remain stable for the period.

Gold cost outlook - AISC is expected to improve from between $960 and $1,020 per ounce in 2015 to between $925 and $1,025 per ounce by 2017. CAS is expected to remain stable at between $660 and $710 per ounce in 2015 and between $650 and $750 per ounce in 2016 and 2017.7 Costs will benefit from higher grades at Batu Hijau, the Carlin underground mines, Tanami and KCGM; and lower cost production from Merian. Ongoing cost and efficiency improvements are expected to offset lower grade and throughput at Ahafo and maturing operations at Yanacocha.

  • North American AISC is expected to improve from between $990 and $1,060 per ounce in 2015 to between $850 and $950 per ounce by 2017. CAS is expected to improve from between $750 and $800 per ounce in 2015 to between $600 and $700 per ounce by 2017. Nevada operating costs are expected to benefit from lower stripping at Carlin, completion of the Turf Vent Shaft, and lower marginal production at Twin Creeks.
  • South America AISC is expected to increase from between $950 and $1,020 per ounce in 2015, to between $1,050 and $1,150 per ounce in 2016, before decreasing to between $950 and $1,050 per ounce in 2017. Similarly, CAS is expected to increase from between $550 and $590 per ounce in 2015 to between $700 and $800 per ounce in 2016, before decreasing to between $650 and $750 per ounce in 2017. The primary driver is the addition of lower cost production from Merian.
  • Asia Pacific AISC is expected to be between $840 and $900 per ounce in 2015 and between $800 and $900 per ounce for 2016 and 2017. CAS is also expected to remain stable at between $670 and $720 per ounce in 2015 and between $650 and $750 per ounce in 2016 and 2017. Primary drivers include higher grades at Batu Hijau and higher grades and production at Tanami and KCGM.
  • Africa AISC is expected to rise from between $820 and $880 per ounce in 2015, to between $1,175 and $1,275 per ounce by 2017. Gold CAS is expected to increase more slowly than previously indicated – from between $620 and $670 per ounce in 2015 to between $950 and $1,050 per ounce in 2017 – as planned cost and efficiency improvements partially offset increased stripping and lower grades and Ahafo and lower grades at Akyem in 2017.

7

The Company’s cost outlook estimates do not include the impact of inflation.

Copper cost outlook – Copper AISC is expected to average between $1.70 and $1.90 per pound in 2015 with higher grade ore at Batu Hijau, and increase slightly to between $1.80 and $2.00 per pound by 2017. CAS is expected to be between $1.20 and $1.40 per pound in 2015, and increase to between $1.30 and $1.50 per pound in 2016 and 2017.

Sensitivities – AISC and CAS could further benefit from lower energy prices and an improving Australian dollar exchange ratio. Every $10 reduction in the price of oil implies an expected $30 million improvement in attributable free cash flow. Similarly, every $0.05 favorable change in the Australian dollar results in a $60 million improvement in attributable free cash flow. These estimates exclude current hedge programs. Please refer to the 10K for further information on hedging positions.

Capital - Sustaining capital is expected to remain stable between $850 and $950 million from 2015 through 2017 as a result of ongoing efforts to improve technical and operational efficiencies.

Debt - At $1,200 per ounce gold, Newmont could fund its most promising growth projects and potentially repay $750 million in 2015 from cash flow and existing cash balances. This would include the scheduled repayment of the PTNNT project debt facility, other regional and corporate debt and between $300 million to $400 million of potential term loan prepayments.

Projects - Turf Vent Shaft in Nevada and Merian in Suriname are included in the company’s outlook for 2015 through 2017:

The Turf Vent Shaft is expected to achieve commercial production in late 2015, adding approximately 100,000 to 150,000 ounces of annual production to Leeville. The shaft provides ventilation required to increase production and decrease mine costs over the 11 year mine life at greater Leeville. Capital costs for the project are estimated at between $350 and $400 million, of which approximately $70 to $80 million will be spent in 2015.

Merian is under construction, and will give Newmont a foothold in a prospective new district with significant upside potential. Gold production is expected to average between 400,000 and 500,000 ounces on a 100 percent basis during the first five years at a cost applicable to sales of $575 to $675 per ounce, and all-in sustaining cost of between $650 and $750 per ounce (unescalated). Capital costs for the project are estimated at between $600 and $700 million for Newmont’s 75 percent share. Newmont’s capital expenditure is expected to be between $330 million and $360 million in 2015 and between $150 million and $190 million in 2016. The project is on time and budget for start-up in late 2016.

The following projects are not currently included in the 2015 – 2017 outlook and hold the potential to add between 250,000 and 350,000 ounces of gold production at competitive costs:

Long Canyon Phase 1 is an oxide deposit with significant upside potential in an emerging district located 80 miles east of Elko, Nevada. The project has been optimized to lower capital, generate stronger returns and reduce the payback period. This first phase of development consists of an open pit mine and heap leach operation with low cost production of between 100,000 and 150,000 ounces per year over an eight year mine life for capital costs of between $250 and $300 million. If approved in Q1 2015, production would begin in Q1 2017.

Tanami Expansion Project includes constructing a second decline in the mine and building incremental capacity in the plant. For a capital cost of between $100 and $120 million, the project would add incremental gold production of 50,000 to 60,000 ounces (first five year average) at lower costs and increase mine life by four years. If approved in the first half of 2015, the additional production would begin in 2017.

Ahafo Mill Expansion would increase profitable production by 100,000 to 125,000 ounces (first five year average) while lowering costs and off-setting the impacts of lower grades and harder ore. Capital costs are expected to be between $140 and $160 million. If approved in the second half of 2015, the additional production would be expected in 2017.

2015 Outlooka

Consolidated
Production

Attributable
Production

Consolidated
CAS

All-in Sustaining
Costsb

Consolidated
Capital

(kozs, kt) (kozs, kt) ($/oz, $/lb) ($/oz, $/lb)

Expenditures
($M)

North America
Carlin 850 – 910 850 – 910 $840 – $900 $1,090 – $1,170 $270 – $290
Phoenixc 200 – 220 200 – 220 $760 – $820 $900 – $960 $20 – $30
Twin Creeksd 410 – 440 410 – 440 $530 – $570 $700 – $750 $60 – $70
Other North America $10 – $20
Total 1,460 – 1,570 1,460 – 1,570 $750 – $800 $990 – $1,060 $360 – $410

South America

Yanacochaf 880 – 940 450 – 490 $550 – $590 $870 – $930 $150 – $170
Merian $440 – $470
La Zanjag 60 – 70
Total 880 – 940 510 – 560 $550 – $590 $950 – $1,020 $590 – $640

APAC

Boddington 700 – 750 700 – 750 $830 – $890 $940 – $1,010 $80 – $90
Tanami 390 – 420 390 – 420 $640 – $690 $880 – $950 $80 – $90
Waihi 130 – 150 130 – 150 $570 – $610 $760 – $820 $10 – $20
KCGMe 310 – 340 310 – 340 $810 – $870 $930 – $1,000 $20 – $30
Duketong 40 – 60
Other Australia/NZ $5 – $10
Batu Hijau, Indonesia 590 – 640 270 -290 $440 – $480 $600 – $640 $120 – $130
Total 2,120 – 2,300 1,840 – 2,010 $670 – $720 $840 – $900 $315 – $370

Africa

Ahafo 300 – 330 300 – 330 $770 – $830 $1,040 – $1,120 $70 – $90
Akyem 440 – 470 440 – 470 $510 – $550 $630 – $680 $30 – $40
Total 740 – 800 740 – 800 $620 – $670 $820 – $880 $100 – $130
Corporate/Other $10 – $20
Total Gold 5,200 – 5,610 4,550 – 4,940 $660 – $710 $960 – $1,020 $1,375 – $1,570
Phoenix 15 – 25 15 – 25 $2.10 – $2.30 $2.50 – $2.70
Boddington 25 – 35 25 – 35 $2.20 – $2.50 $2.80 – $3.10
Batu Hijauh 200 – 220 90 – 100 $1.00 – $1.20 $1.50 – $1.70
Total Copper 240 – 280 130 – 160 $1.20 – $1.40 $1.70 – $1.90
Consolidated Expense Outlooki
General & Administrative $170 – $190
Other Expense $150 – $175
Interest Expense $280 – $300
DD&A $1,160 – $1,240
Exploration and Projects $370 – $400
Sustaining Capital $880 – $950
Tax Rate 33% – 37%
a

2015 Outlook projections used in this release (“Outlook”) are considered “forward-looking statements” and represent management’s good faith estimates or expectations of future production results as of the date hereof. Outlook is based upon certain assumptions, including, but not limited to, metal prices, oil prices, certain exchange rates and other assumptions. For example, 2015 Outlook assumes $1,200/oz Au, $2.75/lb Cu, $0.85 USDAUD exchange rate and $75/barrel WTI. AISC and CAS cost estimates do not include inflation. Such assumptions may prove to be incorrect and actual results may differ materially from those anticipated. Consequently, Outlook cannot be guaranteed. As such, investors are cautioned not to place undue reliance upon Outlook and forward-looking statements as there can be no assurance that the plans, assumptions or expectations upon which they are placed will occur.

b Non-GAAP measure. All-in sustaining costs as used in the Company’s Outlook is a non-GAAP metric defined as the sum of cost applicable to sales (including all direct and indirect costs related to current gold production incurred to execute on the current mine plan), remediation costs (including operating accretion and amortization of asset retirement costs), G&A, exploration expense, advanced projects and R&D, treatment and refining costs, other expense, net of one-time adjustments and sustaining capital.
c Includes Lone Tree operations.
d Includes GTRJV operations.
e Both consolidated and attributable production are shown on a pro-rata basis with a 50% ownership for KCGM.
f Consolidated production for Yanacocha is presented on a total production basis for the mine site; attributable production represents a 51.35% interest.
g La Zanja and Duketon are not included in the consolidated figures above; attributable production figures are presented based upon a 46.94% ownership interest at La Zanja and a 19.45% ownership interest in Duketon.
h Consolidated production for Batu Hijau is presented on a total production basis for the mine site; whereas attributable production represents an expected 44.5625% ownership interest in 2015 outlook (which assumes completion of the remaining share divestiture in the first half of 2015). Outlook for Batu Hijau remains subject to various factors, including, without limitation, renegotiation of the CoW, issuance of future export approvals following the expiration of the six-month permit, negotiations with the labor union, future in-country smelting availability and regulations relating to export quotas, and certain other factors.
i Consolidated expense outlook is adjusted to exclude extraordinary items. For example, the tax rate outlook above is a consolidated adjusted rate, which assumes the exclusion of certain tax valuation allowance adjustments.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited, in millions except per share)

Three Months Ended Years Ended
December 31, December 31,
2014 2013 2014 2013
Sales $2,017 $2,188 $7,292 $8,414
Costs and expenses
Costs applicable to sales (1) 1,129 1,482 4,457 5,299
Depreciation and amortization 307 381 1,229 1,362
Reclamation and remediation 93 25 154 81
Exploration 45 52 164 247
Advanced projects, research and development 41 57 161 222
General and administrative 48 45 186 203
Write-downs 8 2,087 26 4,352
Other expense, net 44 40 205 300
1,715 4,169 6,582 12,066
Other income (expense)
Other income, net 29 (17) 157 349
Interest expense, net (85) (92) (361) (303)
(56) (109) (204) 46
Income (loss) before income and mining tax and other items 246 (2,090) 506 (3,606)
Income and mining tax benefit (expense) (155) 809 (133) 755
Equity income (loss) of affiliates (6) 1 (4) (5)
Income (loss) from continuing operations 85 (1,280) 369 (2,856)
Income (loss) from discontinued operations (24) 8 (40) 61
Net income (loss) 61 (1,272) 329 (2,795)
Net loss (income) attributable to noncontrolling interests (46) 85 179 261
Net income (loss) attributable to Newmont stockholders $15 ($1,187) $508 ($2,534)
Net income (loss) attributable to Newmont stockholders:
Continuing operations $39 ($1,195) $548 ($2,595)
Discontinued operations (24) 8 (40) 61
$15 ($1,187) $508 ($2,534)
Income (loss) per common share
Basic:
Continuing operations $0.08 ($2.39) $1.10 ($5.21)
Discontinued operations ($0.05) $0.01 ($0.08) $0.12
$0.03 ($2.38) $1.02 ($5.09)
Diluted:
Continuing operations $0.08 ($2.39) $1.10 ($5.21)
Discontinued operations ($0.05) $0.01 ($0.08) $0.12
$0.03 ($2.38) $1.02 ($5.09)
Cash dividends declared per common share $0.025 $0.200 $0.225 $1.225

(1) Excludes Depreciation and amortization and Reclamation and remediation.

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited, in millions)

Three Months Ended Years Ended
December 31, December 31,
2014 2013 2014 2013
Operating activities:
Net income (loss) $ 61 $ (1,272) $ 329 $ (2,795)
Adjustments:
Depreciation and amortization 307 381 1,229 1,362
Stock based compensation and other non-cash benefits 9 9 51 64
Reclamation and remediation 93 25 154 81
Revaluation of contingent consideration (18) (18)
Loss (income) from discontinued operations 24 (8) 40 (61)
Write-downs 8 2,087 26 4,352
Impairment of investments 17 53 21 105
Deferred income taxes 34 (733) (149) (1,256)
Gain on asset and investment sales, net (34) (4) (126) (286)
Other operating adjustments and write-downs 67 402 574 1,099
Net change in operating assets and liabilities (24) (536) (698) (1,086)
Net cash provided from continuing operations 562 386 1,451 1,561
Net cash used in discontinued operations (3) (4) (13) (18)
Net cash provided from operations 559 382 1,438 1,543
Investing activities:
Additions to property, plant and mine development (344) (372) (1,110) (1,900)
Acquisitions, net (28) (13)
Sales of investments 1 25 589
Purchases of investments (25) (26) (1)
Proceeds from sale of other assets 470 8 661 63
Other (16) (13) (29) (51)
Net cash provided from (used in) investing activities 85 (376) (507) (1,313)
Financing activities:
Proceeds from debt, net 5 276 601 1,538
Repayment of debt (105) (90) (686) (1,150)
Proceeds from stock issuance, net 2
Sale of noncontrolling interests 108 179 32
Acquisition of noncontrolling interests (3) (4) (9) (17)
Dividends paid to noncontrolling interests (4) (2)
Dividends paid to common stockholders (12) (101) (114) (610)
Other (5) (1) (32) (5)
Net cash provided from (used in) financing activities (12) 80 (65) (212)
Effect of exchange rate changes on cash (7) (6) (18) (24)
Net change in cash and cash equivalents 625 80 848 (6)
Cash and cash equivalents at beginning of period 1,778 1,475 1,555 1,561
Cash and cash equivalents at end of period $ 2,403 $ 1,555 $ 2,403 $ 1,555

NEWMONT MINING CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEETS

(unaudited, in millions)

At December 31, At December 31,
2014 2013
ASSETS
Cash and cash equivalents $ 2,403 $ 1,555
Trade receivables 186 230
Accounts receivable 290 252
Investments 73 78
Inventories 700 717
Stockpiles and ore on leach pads 666 805
Deferred income tax assets 240 246
Other current assets 881 1,006
Current assets 5,439 4,889
Property, plant and mine development, net 13,650 14,277
Investments 334 439
Stockpiles and ore on leach pads 2,820 2,680
Deferred income tax assets 1,790 1,478
Other long-term assets 883 844
Total assets $ 24,916 $ 24,607
LIABILITIES
Debt $ 166 $ 595
Accounts payable 406 478
Employee-related benefits 307 341
Income and mining taxes 74 13
Other current liabilities 1,245 1,313
Current liabilities 2,198 2,740
Debt 6,480 6,145
Reclamation and remediation liabilities 1,606 1,513
Deferred income tax liabilities 656 635
Employee-related benefits 492 323
Other long-term liabilities 395 342
Total liabilities 11,827 11,698
Commitments and contingencies
EQUITY
Common stock – $1.60 par value; 798 789
Authorized – 750 million shares
Issued and outstanding –

Common: 499 million and 493 million shares issued, less 330,000 and
322,000 treasury shares, respectively

Exchangeable: 56 million shares issued, less 56 million and 51 million
redeemed shares, respectively

Additional paid-in capital 8,712 8,538
Accumulated other comprehensive income (loss) (478) (182)
Retained earnings 1,242 848
Newmont stockholders’ equity 10,274 9,993
Noncontrolling interests 2,815 2,916
Total equity 13,089 12,909
Total liabilities and equity $ 24,916 $ 24,607

Non-GAAP Financial Measures

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

Adjusted net income (loss)

Management of the Company uses Adjusted net income (loss) to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and analysts to compare results of the continuing operations of the Company and its direct and indirect subsidiaries relating to the production and sale of minerals to similar operating results of other mining companies, by excluding exceptional or unusual items. Management’s determination of the components of Adjusted net income (loss) are evaluated periodically and based, in part, on a review of non-GAAP financial measures used by mining industry analysts. Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows:

Three Months Ended December 31, Years Ended December 31,
2014 2013 2014 2013
Net income (loss) attributable to Newmont stockholders $ 15 $ (1,187) $ 508 $ (2,534)
Loss (income) from discontinued operations 24 (8) 40 (61)
Impairments and loss provisions 14 1,345 26 2,875
Tax valuation allowance 43 (34) 535
Restructuring and other 3 8 21 36
Asset Sales (23) (3) (54) (246)
Reclamation Settlement 10 10
Boddington contingent consideration (gain) loss (12) (12)
Abnormal production costs at Batu Hijau 28
TMAC transaction costs 30
Adjusted net income (loss) $ 86 $ 143 $ 545 $ 623
Adjusted net income (loss) per share, basic $ 0.17 $ 0.28 $ 1.09 $ 1.25
Adjusted net income (loss) per share, diluted $ 0.17 $ 0.28 $ 1.09 $ 1.25

Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)

We also present adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”) as a non-GAAP measure. Our management uses adjusted net income, adjusted net income per diluted share and adjusted EBITDA as measures of operating performance to assist in comparing performance from period to period on a consistent basis; as a measure for planning and forecasting overall expectations and for evaluating actual results against such expectations; in communications with the board of directors, stockholders, analysts and investors concerning our financial performance; as useful comparisons to the performance of our competitors; and as metrics of certain management incentive compensation calculations. We believe that adjusted net income, adjusted net income per diluted share and adjusted EBITDA are used by and are useful to investors and other users of our financial statements in evaluating our operating performance because they provide an additional tool to evaluate our performance without regard to special and non-core items, which can vary substantially from company to company depending upon accounting methods and book value of assets and capital structure. We have provided reconciliations of all non-GAAP measures to their nearest U.S. GAAP measures and have consistently applied the adjustments within our reconciliations in arriving at each non-GAAP measure. These adjustments consist of special items from our U.S. GAAP financial statements as well as other non-core items, such as property, plant and mine development impairments, restructuring costs, gains and losses on sales of asset sales, abnormal production costs and transaction/acquisition costs included in our U.S. GAAP results that warrant adjustment to arrive at non-GAAP results. We consider these items to be necessary adjustments for purposes of evaluating our ongoing business performance and are often considered non-recurring. Such adjustments are subjective and involve significant management judgment.

Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013

Income (loss) before income and mining tax
and other items

$ 246 $ (2,090) $ 506 $ (3,606)
Adjustments:
Depreciation and Amortization 307 381 1,229 1,362
Interest expense , net 85 92 361 303
EBITDA $ 638 $ (1,617) $ 2,096 $ (1,941)
Impairments and loss provision 25 2,140 47 4,457
Restructuring and other 8 17 40 67
Asset sales (34) (5) (126) (286)
Reclamation site settlement 15 15
Boddington contingent consideration (18) (18)
Abnormal production costs at Batu Hijau 53
TMAC transition costs 45
Adjusted EBITDA $ 652 $ 517 $ 2,125 $ 2,324

Costs applicable to sales per ounce/pound

Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. These measures are calculated on a consistent basis for the periods presented on a consolidated basis. Costs applicable to sales per ounce/pound statistics are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently.

The following tables reconcile these non-GAAP measures to the most directly comparable GAAP measures.

Costs applicable to sales per ounce

Three Months Ended December 31, Years Ended December 31,
2014 2013 2014 2013
Costs applicable to sales (1) $ 900 $ 1,182 $ 3,697 $ 4,237
Gold sold (thousand ounces) 1,426 1,541 5,240 5,489
Costs applicable to sales per ounce $ 631 $ 766 $ 706 $ 772
(1) Includes by-product credits of $14 and $68 in the fourth quarter and full year 2014, respectively and $23 and $98 in the fourth quarter and full year of 2013, respectively.

Costs applicable to sales per pound

Three Months Ended December 31, Years Ended December 31,
2014 2013 2014 2013
Costs applicable to sales (1) $ 229 $ 300 $ 760 $ 1,062
Copper sold (million pounds) 123 77 264 258
Costs applicable to sales per pound $ 1.86 $ 3.82 $ 2.88 $ 4.12
(1) Includes by-product credits of $5 and $17 in the fourth quarter and full year of 2014, respectively and $4 and $13 in the fourth quarter and full year of 2013, respectively.
Regional Operating Statistics
Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Consolidated gold ounces produced (thousands):
North America
Carlin 233 311 907 1,025
Phoenix 50 56 211 234
Twin Creeks 110 168 389 509
La Herradura 3 22 124 183
396 557 1,631 1,951
South America
Yanacocha 322 184 970 1,017
Australia/New Zealand
Boddington 189 179 696 704
Tanami 94 101 345 323
Jundee - 62 138 279
Waihi 26 29 132 110
Kalgoorlie 80 99 329 332
389 470 1,640 1,748
Indonesia
Batu Hijau 43 12 76 48
Africa
Ahafo 105 162 442 570
Akyem 134 129 472 129
239 291 914 699
1,389 1,514 5,231 5,463
Consolidated copper pounds produced (millions):
Phoenix 11 10 46 35
Boddington 19 16 69 66
Batu Hijau 68 46 156 161
98 72 271 262
Consolidated copper tonnes produced (thousands):
Phoenix 5 5 21 16
Boddington 9 7 31 30
Batu Hijau 31 21 71 73
45 33 123 119
Three Months Ended December 31, Twelve Months Ended December 31,
2014 2013 2014 2013
Attributable gold ounces produced (thousands):
North America
Carlin 233 311 907 1,025
Phoenix 50 56 211 234
Twin Creeks 110 168 389 509
La Herradura 3 22 124 183
396 557 1,631 1,951
South America
Yanacocha 165 95 498 523
Other South America Equity Interests 36 16 67 65
201 111 565 588
Australia/New Zealand
Boddington 189 179 696 704
Tanami 94 101 345 323
Jundee - 62 138 279
Waihi 26 29 132 110
Kalgoorlie 80 99 329 332
Other Australia/New Zealand Equity Interests 15 13 58 56
404 483 1,698 1,804
Indonesia
Batu Hijau 21 6 37 23
Africa
Ahafo 105 162 442 570
Akyem 134 129 472 129
239 291 914 699
1,261 1,448 4,845 5,065
Attributable copper pounds produced (millions):
Phoenix 11 10 46 35
Boddington 19 16 69 66
Batu Hijau 32 22 76 78
62 48 191 179
Attributable copper tonnes produced (thousands):
Phoenix 5 5 21 16
Boddington 9 7 31 30
Batu Hijau 15 10 34 35
29 22 86 81

All-In Sustaining Costs

Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow from operations.

Current GAAP-measures used in the gold industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop, and sustain gold production. Therefore, we believe that All-in sustaining costs are non-GAAP measures that provide additional information to management, investors, and analysts that aid in the understanding of the economics of our operations and performance compared to other gold producers and in the investor’s visibility by better defining the total costs associated with producing gold.

All-in sustaining cost (“AISC”) amounts are intended to provide additional information only and do not have any standardized meaning prescribed by GAAP and should not be considered in isolation or as a substitute for measures of performance prepared in accordance with GAAP. The measures are not necessarily indicative of operating profit or cash flow from operations as determined under GAAP. Other companies may calculate these measures differently as a result of differences in the underlying accounting principles, policies applied and in accounting frameworks such as in International Financial Reporting Standards (“IFRS”), or by reflecting the benefit from selling non-gold metals as a reduction to AISC. Differences may also arise related to definitional differences of sustaining versus development capital activities based upon each company’s internal policies.

The following disclosure provides information regarding the adjustments made in determining the All-in sustaining costs measure:

Cost Applicable to Sales-Includes all direct and indirect costs related to current gold production incurred to execute the current mine plan. Costs Applicable to Sales (“CAS”) includes by-product credits from certain metals obtained during the process of extracting and processing the primary ore-body. CAS is accounted for on an accrual basis and excludes Amortization and Reclamation and remediation, which is consistent with our presentation of CAS on the Statement of Consolidated Income. In determining AISC, only the CAS associated with producing and selling an ounce of gold is included in the measure. Therefore, the amount of gold CAS included in AISC is derived from the CAS presented in the Company’s Statement of Consolidated Income less the amount of CAS attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The copper CAS at those mine sites is disclosed in Note 3 – Segments that accompanies the Consolidated Financial Statements. The allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines is based upon the relative sales percentage of copper and gold sold during the period.

Remediation Costs-Includes accretion expense related to asset retirement obligations (“ARO”) and the amortization of the related Asset Retirement Cost (“ARC”) for the Company’s operating properties recorded as an ARC asset. Accretion related to ARO and the amortization of the ARC assets for reclamation and remediation do not reflect annual cash outflows but are calculated in accordance with GAAP. The accretion and amortization reflect the periodic costs of reclamation and remediation associated with current gold production and are therefore included in the measure. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Advanced Projects and Exploration-Includes incurred expenses related to projects that are designed to increase or enhance current gold production and gold exploration. We note that as current resources are depleted, exploration and advance projects are necessary for us to replace the depleting reserves or enhance the recovery and processing of the current reserves. As this relates to sustaining our gold production, and is considered a continuing cost of a mining company, these costs are included in the AISC measure. These costs are derived from the Advanced projects, research and development and Exploration amounts presented in the Company’s Statement of Consolidated Income less the amount attributable to the production of copper at our Phoenix, Boddington and Batu Hijau mines. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

General and Administrative-Includes cost related to administrative tasks not directly related to current gold production, but rather related to support our corporate structure and fulfilling our obligations to operate as a public company. Including these expenses in the AISC metric provides visibility of the impact that general and administrative activities have on current operations and profitability on a per ounce basis.

Other Expense, net-Includes costs related to regional administration and community development to support current gold production. We exclude certain exceptional or unusual expenses from Other expense, net, such as restructuring, as these are not indicative to sustaining our current gold operations. Furthermore, this adjustment to Other expense, net is also consistent with the nature of the adjustments made to Net income (loss) as disclosed in the Company’s non-GAAP financial measure Adjusted net income (loss). The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Phoenix, Boddington and Batu Hijau mines.

Treatment and Refining Costs-Includes costs paid to smelters for treatment and refining of our concentrates to produce the salable precious metal. These costs are presented net as a reduction of Sales.

Sustaining Capital-We determined sustaining capital as those capital expenditures that are necessary to maintain current gold production and execute the current mine plan. Capital expenditures to develop new operations, or related to projects at existing operations where these projects will enhance gold production or reserves, are considered development. We determined the breakout of sustaining and development capital costs based on a systematic review of our project portfolio in light of the nature of each project. Sustaining capital costs are relevant to the AISC metric as these are needed to maintain the Company’s current gold operations and provide improved transparency related to our ability to finance these expenditures from current operations. The allocation of these costs to gold and copper is determined using the same allocation used in the allocation of CAS between gold and copper at the Batu Hijau, Boddington and Phoenix mines.

Three Months Ended December 31, 2014

Costs
Applicable
to Sales(1)

(2)(3)

Remediation
Costs(4)

Advanced
Projects
and
Exploration

General and
Administrative

Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)

All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold

All-In
Sustaining
Costs per
oz/lb

GOLD
Carlin $ 188 $ 1 $ 6 $ $ 2 $ $ 45 $ 242 232 $ 1,043
Phoenix 44 1 1 1 2 5 54 45 1,200
Twin Creeks 60 1 1 25 87 111 784
La Herradura 3 2 2 7 3 2,333
Other North America 5 (3 ) 3 5
North America 295 2 15 1 2 80 395 391 1,010
Yanacocha 133 21 8 11 24 197 326 604
Other South America 15 15
South America 133 21 23 11 24 212 326 650
Boddington 160 3 1 19 183 214 855
Tanami 66 1 1 35 103 94 1,096
Jundee 1 (1 )
Waihi 18 2 4 24 29 828
Kalgoorlie 71 1 1 2 16 91 79 1,152
Other Australia/New Zealand 2 3 1 6
Australia/New Zealand 315 6 8 3 3 3 69 407 416 978
Batu Hijau 38 2 1 5 1 47 48 979
Other Indonesia (1 ) (1 )
Indonesia 38 2 5 1 46 48 958
Ahafo 67 2 9 1 27 106 111 955
Akyem 52 1 2 12 67 134 500
Other Africa 2 2 4
Africa 119 3 11 5 39 177 245 722
Corporate and Other 28 44 12 1 85
Total Gold $ 900 $ 34 $ 85 $ 47 $ 32 $ 10 $ 214 $ 1,322 1,426 $ 927
COPPER
Phoenix $ 27 $ $ $ $ $ 1 $ 3 $ 31 11 $ 2.82
Boddington 46 1 8 6 61 21 2.90
Batu Hijau 156 5 1 1 3 26 10 202 91 2.22
Total Copper $ 229 $ 5 $ 1 $ 1 $ 4 $ 35 $ 19 $ 294 123 $ 2.39
Consolidated $ 1,129 $ 39 $ 86 $ 48 $ 36 $ 45 $ 233 $ 1,616
(1) Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $19.
(3) Includes stockpile and leach pad inventory adjustments of $32 at Carlin, $9 at Phoenix, $8 at Twin Creeks and $11 at Yanacocha.
(4) Remediation costs include operating accretion of $17 and amortization of asset retirement costs of $22.
(5) Other expense, net is adjusted for restructuring costs of $8.
(6) Excludes $112 of development capital expenditures, capitalized interest, and the increase in accrued capital. The following are major development projects: Turf Vent Shaft, Merian, and Correnso for 2014.
Year Ended December 31, 2014

Costs
Applicable
to Sales(1)

(2)(3)

Remediation
Costs(4)

Advanced
Projects
and
Exploration

General and
Administrative

Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)

All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold

All-In
Sustaining
Costs per
oz/lb

GOLD
Carlin $ 795 $ 4 $ 22 $ $ 8 $ $ 141 $ 970 905 $ 1,072
Phoenix 160 3 4 3 9 17 196 222 883
Twin Creeks 207 2 5 3 111 328 400 820
La Herradura 89 2 12 21 124 119 1,042
Other North America 25 6 9 40
North America 1,251 11 68 20 9 299 1,658 1,646 1,007
Yanacocha 663 101 32 35 80 911 966 943
Other South America 41 2 43
South America 663 101 73 37 80 954 966 988
Boddington 585 11 2 4 69 671 690 972
Tanami 251 4 10 2 91 358 345 1,038
Jundee 85 5 1 2 15 108 140 771
Waihi 76 3 7 2 2 90 131 687
Kalgoorlie 284 4 5 1 4 32 330 327 1,009
Other Australia/New Zealand 5 3 21 6 35
Australia/New Zealand 1,281 27 28 3 30 8 215 1,592 1,633 975
Batu Hijau 81 3 4 9 8 105 72 1,458
Other Indonesia
Indonesia 81 3 4 9 8 105 72 1,458
Ahafo 249 8 27 6 92 382 450 849
Akyem 172 3 8 17 200 473 423
Other Africa 8 7 15
Africa 421 11 35 21 109 597 923 647
Corporate and Other 116 182 31 17 346
Total Gold $ 3,697 $ 153 $ 320 $ 185 $ 143 $ 26 $ 728 $ 5,252 5,240 $ 1,002
COPPER
Phoenix $ 108 $ 1 $ 2 $ $ 1 $ 5 $ 13 $ 130 46 $ 2.83
Boddington 158 2 1 25 18 204 66 3.09
Batu Hijau 494 15 3 1 20 45 51 629 152 4.14
Total Copper $ 760 $ 18 $ 5 $ 1 $ 22 $ 75 $ 82 $ 963 264 $ 3.65
Consolidated $ 4,457 $ 171 $ 325 $ 186 $ 165 $ 101 $ 810 $ 6,215
(1) Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $85.
(3) Includes stockpile and leach pad inventory adjustment of $127 at Carlin, $13 at Phoenix, $15 at Twin Creeks, $75 at Yanacocha, $69 at Boddington, and $191 at Batu Hijau.
(4) Remediation costs include operating accretion of $71 and amortization of asset retirement costs of $100.
(5) Other expense, net is adjusted for restructuring costs of $40.
(6) Excludes $300 of development capital expenditures, capitalized interest, and the increase in accrued capital. The following are major development projects; Turf Vent Shaft, Merian, Correnso and Conga for 2014.
Three Months Ended December 31, 2013

Costs
Applicable
to Sales(1)

(2)(3)

Remediation
Costs(4)

Advanced
Projects
and
Exploration

General and
Administrative

Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)

All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold

All-In
Sustaining
Costs per
oz/lb

GOLD
Carlin $ 254 $ 1 $ 3 $ $ 3 $ 2 $ 34 $ 297 308 $ 964
Phoenix 39 1 1 1 5 47 44 1,068
Twin Creeks 80 2 1 14 97 174 557
La Herradura 55 11 12 78 22 3,545
Other North America 10 (4 ) 6 12
North America 428 4 25 3 71 531 548 969
Yanacocha 164 22 9 3 41 239 186 1,285
Other South America 11 3 14
South America 164 22 20 6 41 253 186 1,360
Boddington 227 1 1 25 254 204 1,245
Tanami 67 1 4 1 25 98 107 916
Jundee 52 3 12 67 63 1,063
Waihi 29 1 1 2 33 34 971
Kalgoorlie 76 2 1 9 88 98 898
Other Australia/New Zealand 2 9 4 15
Australia/New Zealand 451 8 8 13 75 555 506 1,097
Batu Hijau 26 (1 ) 1 2 28 13 2,154
Other Indonesia (2 ) (2 )
Indonesia 26 (3 ) 1 2 26 13 2,000
Ahafo 81 1 15 11 12 120 159 755
Akyem 32 1 3 36 129 279
Other Africa 1 (7 ) (6 )
Africa 113 1 17 7 12 150 288 521
Corporate and Other 36 45 8 4 93
Total Gold $ 1,182 $ 35 $ 106 $ 45 $ 31 $ 4 $ 205 $ 1,608 1,541 $ 1,043
COPPER
Phoenix $ 11 $ $ 1 $ $ 1 $ 1 $ 1 $ 15 5 $ 3.00
Boddington 56 1 5 6 68 18 3.78
Batu Hijau 233 2 2 8 16 21 282 54 5.22
Total Copper $ 300 $ 2 $ 3 $ $ 10 $ 22 $ 28 $ 365 77 $ 4.74
Consolidated $ 1,482 $ 37 $ 109 $ 45 $ 41 $ 26 $ 233 $ 1,973
(1) Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $27.
(3) Includes stockpile and leach pad inventory adjustments of $66 at Carlin, $24 at La Herradura, $44 at Yanacocha, $74 at Boddington, and $138 at Batu Hijau.
(4) Remediation costs include operating accretion of $16 and amortization of asset retirement costs of $21.
(5) Other expense, net is adjusted for Boddington contingent consideration of $18, partially offset by $17 for restructuring costs.
(6) Excludes $139 of development capital expenditures, capitalized interest, and the increase in accrued capital. The following are major development projects: Phoenix Copper Leach, Turf Vent Shaft, Yanacocha Bio Leach, Conga, Merian, Ahafo Mill Expansion and Akyem for 2013.
Year Ended December 31, 2013

Costs
Applicable
to Sales(1)

(2)(3)

Remediation
Costs(4)

Advanced
Projects
and
Exploration

General and
Administrative

Other
Expense,
Net(5)

Treatment
and
Refining
Costs

Sustaining
Capital(6)

All-In
Sustaining
Costs

Ounces
(000)/
Pounds
(millions)
Sold

All-In
Sustaining
Costs per
oz/lb

GOLD
Carlin $ 767 $ 5 $ 34 $ $ 7 $ 14 $ 154 $ 981 1,013 $ 968
Phoenix 164 3 7 2 9 20 205 225 911
Twin Creeks 273 6 7 4 56 346 518 668
La Herradura 177 42 74 293 183 1,601
Other North America 42 4 23 69
North America 1,381 14 132 17 23 327 1,894 1,939 977
Yanacocha 684 90 41 63 148 1,026 1,022 1,004
Other South America 34 4 38
South America 684 90 75 67 148 1,064 1,022 1,041
Boddington 805 6 1 2 4 90 908 743 1,222
Tanami 270 3 11 3 91 378 325 1,163
Jundee 206 13 7 1 45 272 279 975
Waihi 103 3 5 2 7 120 111 1,081
Kalgoorlie 342 7 3 1 19 372 329 1,131
Other Australia/New Zealand 13 34 4 51
Australia/New Zealand 1,726 32 40 43 4 256 2,101 1,787 1,176
Batu Hijau 107 2 2 3 5 12 131 46 2,848
Other Indonesia (2 ) (2 )
Indonesia 107 2 2 1 5 12 129 46 2,804
Ahafo 307 3 51 14 109 484 566 855
Akyem 32 8 3 43 129 333
Other Africa 8 10 18
Africa 339 3 67 27 109 545 695 784
Corporate and Other 137 203 25 12 377
Total Gold $ 4,237 $ 141 $ 453 $ 203 $ 180 $ 32 $ 864 $ 6,110 5,489 $ 1,113
COPPER
Phoenix $ 52 $ 1 $ 3 $ $ 1 $ 5 $ 7 $ 69 29 $ 2.38
Boddington 195 1 1 19 22 238 71 3.35
Batu Hijau 815 9 13 24 47 93 1,001 158 6.34
Total Copper $ 1,062 $ 11 $ 16 $ $ 26 $ 71 $ 122 $ 1,308 258 $ 5.07
Consolidated $ 5,299 $ 152 $ 469 $ 203 $ 206 $ 103 $ 986 $ 7,418
(1) Excludes Depreciation and amortization and Reclamation and remediation.
(2) Includes by-product credits of $111.
(3) Includes stockpile and leach pad inventory adjustments of $69 at Carlin, $1 at Twin Creeks, $24 at La Herradura, $107 at Yanacocha, $184 at Boddington, $1 at Tanami, $4 at Waihi, $45 at Kalgoorlie, and $523 at Batu Hijau.
(4) Remediation costs include operating accretion of $61 and amortization of asset retirement costs of $91.
(5) Other expense, net is adjusted for restructuring of $67 and TMAC transaction costs of $45, offset by $18 for Boddington Contingent Consideration.
(6) Excludes $914 of development capital expenditures, capitalized interest, and the increase in accrued capital. The following are major development projects; Phoenix Copper Leach, Turf Vent Shaft, Yanacocha Bio Leach, Conga, Merian, Ahafo Mill Expansion, and Akyem for 2013.

Adjusted Consolidated All-in Sustaining Cost Savings

Twelve Months Ended December 31, 2014

Costs
Applicable
to Sales

Remediation
Costs

Advanced
Projects
and
Exploration

General and
Administrative

Other
Expense,
Net

Treatment
and
Refining
Costs

Sustaining
Capital

All-In
Sustaining
Costs

Gold and Copper Consolidated $ 4,457 $ 171 $ 325 $ 186 $ 165 $ 101 $ 810 $ 6,215
Adjustments:
Portfolio changes1 (274) (7) (1) (18) (17) (38) (355)
FX/Oil2 10 10
NRV’s3 (162) (162)

Total

$ 4,031 $ 164 $ 324 $ 186 $ 147 $ 84 $ 772

$

5,708

Adjusted Consolidated AISC Savings4

$ 524
Twelve Months Ended December 31, 2013

Costs
Applicable
to Sales

Remediation
Costs

Advanced
Projects and
Exploration

General and
Administrative

Other
Expense,
Net

Treatment
and
Refining
Costs

Sustaining
Capital

All-In
Sustaining
Costs

Gold and Copper Consolidated $ 5,299 $ 152 $ 469 $ 203 $ 206 $ 103 $ 986 $ 7,418
Adjustments:
Portfolio Changes1 (418) (15) (24) (14) (28) (98) (598)
FX/Oil2 (22) (18) (40)
NRV’s3 (548) (548)

Total

$ 4,311 $ 137 $ 445 $ 203 $ 192 $ 75 $ 869

$

6,232

(1) Portfolio changes include impacts from Jundee (sold on July 1, 2014), Midas as a component of Twin Creeks segment (sold on February 11, 2014), La Herradura (sold on October 6, 2014); Akyem start-up (reached commercial production in October 2013), and the impact of the Batu Hijau interruption (Q2 and Q3 2014) as a result of export permit issues.
(2) FX/Oil represents A$ impacts and Diesel Price impacts, net of hedging activities.
(3) NRV’s are related to write-downs recorded at Q2 2013 due to a change in long-term price assumptions, and Q3 14 at Batu Hijau related to the change in the export agreement.

(4)

Used by management to illustrate savings from 2013 to 2014 based upon the adjusted consolidated AISC reflected in the tables above.

Conference Call Information

A conference call will be held on Friday, February 20, 2015 at 10:00 a.m. Eastern Time (8:00 a.m. Mountain Time); it will also be carried on the Company’s website.

Conference Call Details

Dial-In Number 800.857.6428
Intl Dial-In Number 517.623.4916
Leader Meredith Bandy
Passcode Newmont
Replay Number 866.495.6479
Intl Replay Number 203.369.1768
Replay Passcode 2015

Webcast Details

URL http://event.on24.com/r.htm?e=919381&s=1&k=5E4A85A4D54DE75B68356B6B4E08F928

The fourth quarter and full year 2014 results and related financial and statistical information will be available after the market close on Thursday February 19, 2015 on the “Investor Relations” section of the Company’s website, www.newmont.com. Additionally, the conference call will be archived for a limited time on the Company’s website.

Investors are reminded to refer to the investor Briefcase on www.newmont.com which contains operating statistics, MD&A and other relevant financial information.

Cautionary Statement Regarding Forward Looking Statements, Including Outlook:

This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections and other applicable laws. Such forward-looking statements may include, without limitation: (i) estimates of future consolidated and attributable production and sales; (ii) estimates of future costs applicable to sales and All-in sustaining costs; (iii) estimates of future consolidated and attributable capital expenditures; (iv) our efforts to continue delivering reduced costs and efficiency; and (v) expectations regarding the development, growth and exploration potential of the Company’s projects, including the Turf Vent Shaft, Merian, Long Canyon Phase 1, the Tanami Expansion and the Ahafo Mill Expansion; and (vi) expectations regarding the repayment of debt from cash flows and existing cash. Estimates or expectations of future events or results are based upon certain assumptions, which may prove to be incorrect. Such assumptions, include, but are not limited to: (i) there being no significant change to current geotechnical, metallurgical, hydrological and other physical conditions; (ii) permitting, development, operations and expansion of the Company’s operations and projects being consistent with current expectations and mine plans, including without limitation receipt of export approvals; (iii) political developments in any jurisdiction in which the Company operates being consistent with its current expectations; (iv) certain exchange rate assumptions for the Australian dollar to the U.S. dollar, as well as other the exchange rates being approximately consistent with current levels; (v) certain price assumptions for gold, copper and oil; (vi) prices for key supplies being approximately consistent with current levels; (vii) the accuracy of our current mineral reserve and mineralized material estimates; (viii) the acceptable outcome of negotiation of the amendment to the Contract of Work and/or resolution of export issues in Indonesia other assumptions noted herein. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, such statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by the “forward-looking statements”. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks, community relations, conflict resolution and outcome of projects or oppositions and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2014 Annual Report on Form 10-K, filed on February 19, 2015, with the Securities and Exchange Commission, as well as the Company’s other SEC filings. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” including, without limitation, outlook, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. Investors should not assume that any lack of update to a previously issued “forward-looking statement” constitutes a reaffirmation of that statement. Continued reliance on “forward-looking statements” is at investors’ own risk.

Investors are reminded that this news release should be read in conjunction with Newmont’s Form 10-K filed with the Securities and Exchange Commission on or about February 19, 2015 (available at www.newmont.com).

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