February 2, 2004
1. Newmont’s August 2003 fact sheet mentions:
A. The company controls a global land position of 63,000 square miles.
B. Company manages an equity portfolio valued at $300M at end of 2nd quarter 2003.
C. More than 60% of the reserves and production are based in S&P rated AAA countries.
D. Company claims that a $10 change in gold price changes annual net income by $58M and cash generated by operating activities of $68M. This apparently has been revised as per a slide show I saw, dated December 11, 2003. Revision appears to be ” $10 change in gold price changes annual net income by $50M and cash generated by operating activities of $56M”
E. Proven and probable gold reserves are 86.9M ounces as of December 31, 2002.
2. Newmont’s 2003 Information handbook mentions:
A. Total cash costs of $198 to $208 per ounce.
B. Total Copper proven and probable reserves are 7,610 lbs.
C. Zinc, the world’s fourth most widely used metal, is used as a coating to galvanize steel and as an alloy in the manufacture of brass and bronze. It is also used in chemicals and pharmaceuticals. Zinc prices declined
from a high of $0.79 per pound in 1997 to an average of $0.35 in 2002.
D. Copper is one of the most widely used metals in the world in the construction, electrical utility,
communications and transportation industries. It also has many manufacturing, industrial and consumer
applications and is used to make brass.
E. Newmont is forecasting gold sales of between 7.2 million and 7.4 million ounces in 2003, which would
result in reserve depletion of approximately 9.0 million ounces.
F. 406,305 fully diluted shares outstanding as of June 30, 2003.
3. Looking at various reports we have gathered the following data. Information could be incorrect, hence please do not rely on this or any data, which we present on our website:
A. According to a report we read dated January 27, 2004 , total NEM gold reserves are 131.3M, a cash cost of $199/oz., total cost of $280/oz. and estimated mine life reserves of 11.5N.