newmont mining 11_27_07_Scotia_Presentation

Scotia Capital’s Precious Metals Conference

November 27, 2007

November 27, 2007 Slide 2

Cautionary Statement

This presentation 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 and the components thereof; (iii) estimates of future capital expenditures and project costs; (iv) estimates regarding timing of future development, construction or production activities; (v) statements regarding future exploration results and reserves; and (vi) statements regarding potential cost savings, productivity, operating performance, cost structure and competitive position. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by suchforward-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, including the prospectus supplement dated October 15, 2007. 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.


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10

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1920 1925 1930 1935 1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005

Dow

/Gol

d

Dow Jones Average vs. Gold

Low of 1.33 in June 1980

High of 28.00 in January 1966

Low of 1.95 in February 1933

High of 18.44 in August 1929

3.5 Year Duration

14 Year Duration

High of 42.35 in August 1999

Gold Market

Source: Bloomberg

17.50 on October 31, 2007


Gold vs. US$

Source: Federal Reserve, Bloomberg

$0.70

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

$1.50

1975 1977 1980 1983 1985 1988 1991 1993 1996 1999 2001 2004 2007

Fede

ral T

rade

Wei

ghte

d D

olla

r

$0

$100

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$300

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d $/

Oun

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Federal Trade Weighted DollarGold $/oz


Gold ETFs

Gold ETF holdings: tonnes

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100

200

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Jul-03

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Tonnes

300

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$/oz

GOLDIST (Istanbul Stock Exchange)ZKB Gold ETF-SWXIAU-AmexGLD-NYSENewGold-JSELyxor GBS-LSEGBS-ASXGold price, London PM fix

Data: www.ishares.com; www.exchangetradedgold.com; Zurich Kantonalbank; Finans Portföy; Bloomberg; Global Insight Chart: World Gold Council


Accountability, Focus, Decisiveness and Execution

Foundation

World’s Premier Unhedged Gold Producer

Focusing on Core Gold Business

Maintaining Financial Strength and Flexibility

Rebuilding the Gold Company of Choice

Refocused Operational Planning and Execution

Disciplined Project Execution

Fresh Approach to Exploration and Development


Q3 Outlook Financial Results

CongaAkyem

Hope Bay

Regional Highlights

Nevada Power Plant

Yanacocha Gold Mill

Boddington

Strategic Foundation

Operational Execution

Project Execution

Exploration&

Development

Financial Strength & Flexibility

Leverage, Scope & Scale

GOLD

BASE METALS

MAJOR PROJECTS

POTENTIAL ACQUISITION

HOPE BAY


Financial Strength & Flexibility –Third Quarter 2007 Highlights

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

(2) Includes sales from Holloway and Zarafshan discontinued operations for the nine months ended September 30, 2006.(3) Excludes depreciation, depletion and amortization, loss on settlement of price-capped forward sales contracts and Midas redevelopment.

Financial ($ million, except per share) Q3 2007 Q3 2006 YTD 2007 YTD 2006

Revenues $ 1,646 $ 1,102 $ 4,204 $ 3,527

Net income (loss) $ 397 $ 198 $ (1,597) $ 568

Net income (loss) per share $ 0.88 $ 0.44 $ (3.54) $ 1.26

Operating Q3 2007 Q3 2006 YTD 2007 YTD 2006

Equity gold sales (000 ounces) (1), (2) 1,326 1,379 3,916 4,155

Average realized gold price ($/ounce) $ 681 $ 611 $ 665 $ 588

Costs applicable to sales ($/ounce) (3) $ 388 $ 318 $ 414 $ 297

Net cash provided from (used in) continuing operations $ 521 $ 201 $ (103) $ 723


Financial Strength & Flexibility –Third Quarter 2007 Highlights

Description (after-tax) Q3 2007($ mm) EPS Q3 2006

($ mm)

Net Income $ 397 $ 0.88 $ 198 $ 0.44

Sale of Alberta Oil Sands and Martabe $ - $ - $ (193) $ (0.43)

$ 57

$ 66

$ 26

$ (0.19)

$ (0.12)

$ -

EPS

Revision of Valuation Allowances on Foreign Tax Credits $ (84) $ 0.13

Zarafshan Settlement/Expropriation $ (54) $ 0.15

Settlement of Prepaid Forward Contracts $ - $ 0.06


Financial Strength & Flexibility –Margin

$195 $218 $237$304

$421 $433$388

$171$194

$204

$295

$232 $234 $296

$366$412

$441

$599$653 $667 $681

$-

$100

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$1,000

2003 2004 2005 2006 Q1 2007 Q2 2007 Q3 2007

CAS/Oz Operating Margin/Oz Average Annual Realized Gold Price


Financial Strength & Flexibility –Q3 2007 Equity Gold Sales

583

185

319

90 113

36 30 -

50100

- 120

90 -

110

300

- 320

180

- 200

640

- 660

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Nevada Yanacocha Australia/NZ Batu Hijau Ahafo Other

000

ozs

Q3 2007 2007 Outlook at Beginning of the Year


Financial Strength & Flexibility –Q3 2007 CAS Per Ounce

$426

$358

$147

$455

$378

$480

$310

- $3

20

$475

- $4

85

$185

- $1

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$450

- $4

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$360

- $3

70

$365

- $3

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$0

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$200

$300

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Nevada Yanacocha Australia/NZ Batu Hijau Ahafo Other

CA

S ($

/oz)

Q3 2007 2007 Outlook at Beginning of the Year


Financial Strength & Flexibility –2007 Outlook

2007 Outlook Q3 2007 Q1 2007

Equity gold sales (million ounces) 5.2 - 5.4 5.2 – 5.6

Equity copper sales (million pounds) 190 – 210 210 - 230

Costs applicable to sales ($/oz) $400 - $430 $375 - $400

Costs applicable to sales ($/lb) $1.10 - $1.20 $1.10 - $1.20

Consolidated capital expenditures ($ billion) $1.7 - $1.9 $1.8 - $2.0

Annual effective tax rate 24% - 30% 29% - 34%

General & administrative expenses (millions) $160 - $170 $155 - $165

Advanced projects, research and development (millions) $65 - $80 $85 - $100

Net interest expenses (millions) $85 - $95 $95 - $105

Exploration expenditures (millions) $180 - $185 $170 - $175


Financial Strength & Flexibility –2007 Costs Applicable to Sales Outlook

(1)

(2)

(1) Midpoint of prior outlook range of $375 to $400(2) Midpoint of Q3 outlook range of $400 to $430

Prod

uctio

n

Roy

altie

s/O

ther

Con

sum

able

s

Exch

ange

Rat

e

Labo

r/Con

trac

t Ser

vice

s

Die

sel

$300

$325

$350

$375

$400

$425

CA

S ($

/oz)

Prior Outlook Q3 Outlook

$387

$415

~$9~$8

~$5~$5 ~$3 ~($2)


Project Execution –Nevada Power Plant

Approximately 82% Complete

200 MW Coal Fired; 150 MW Estimated Annual

Internal Consumption

Nevada Costs Applicable to Sales Reduction

~$25/ounce

Start-Up Mid-2008

Project Costs: $620 - $640 Million

Rail, Coal, Operations & Maintenance, and Off-

Take Contracts Substantially Complete

Power Plant

First Coal Shipment


Project Execution –Yanacocha Gold Mill


Extends the Operating Life of Yanacocha

• Improved recoveries/financial returns

• Ability to treat more complex ores

Project Costs: $250 - $270 Million

On Schedule for Start-Up in H1-2008

Yanacocha Gold Mill

Yanacocha Gold Mill


Project Execution –Boddington

Crusher

Boddington

Equity Gold and Copper Reserves of 9.1 Million

Ounces and 840 Million Pounds, Respectively


On Schedule for Late 2008 or Early 2009 Start-Up

Favorable Location to Attract Employees

Long-Term, Competitive Power Agreement

Definitive Expected to be Completed Q1 2008


Conga - Peru

• Equity gold and copper reserves of 6.1 million ounces and 1.7 billion pounds, respectively

• Continued engineering, community, external affairs and permitting efforts

• Continued optimization through Stage-Gate process

• Development decision expected in 2008

Akyem - Ghana

• Equity gold reserves of 7.7 million ounces

• Pending permitting, power issue resolution and optimization studies

• Development decision expected in 2008

Exploration & Development –Project Pipeline

Conga Exploration

Ghana Exploration


Exploration & Development –Miramar Mining/Hope BayUpdate• Cash offer of C$6.25 per share

• Unanimous support of Miramar’s Board of Directors and Senior Management

• Investment Canada application made, 45-day review period ends December 13th

• Offering Circular mailed October 31st; will remain open through December 6th, pending Investment Canada approval

Benefits of Transaction • Establish new core mining district in Canada

• Long-term operating district with competitive costs

• Opportunity to control and explore ~80x20 kilometer greenstone belt with substantial exploration potential


Accountability, Focus, Decisiveness and Execution

Foundation

World’s Premier Unhedged Gold Producer

Focusing on Core Gold Business

Maintaining Financial Strength and Flexibility

Rebuilding the Gold Company of Choice

Refocused Operational Planning and Execution

Disciplined Project Execution

Fresh Approach to Exploration and Development

newmont mining 11_27_07_Scotia_Presentation

Economy & Finance

Transcript of newmont mining 11_27_07_Scotia_Presentation