UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
April 28, 1997
Newmont Mining Corporation
Delaware 1-1153 13-1806811
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1700 Lincoln Street, Denver, CO 80203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(303) 863-7414
<PAGE>
Newmont Gold Company
Delaware 1-9184 13-2526632
(State or other (Commission File (IRS Employer
jurisdiction of Number) Identification No.)
incorporation)
1700 Lincoln Street, Denver, CO 80203
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:
(303) 863-7414
<PAGE>
Item 5. Other Events.
On April 28, 1997, Newmont Mining Corporation and Newmont Gold Company
issued a joint press release announcing its earnings for the first quarter of
1997. A copy of the text of the press release is attached as Exhibit 20(a)
and is incorporated herein by reference.
Item 7. Financial Statements and Exhibits.
(a) None.
(b) None.
(c) Exhibits.
20(a) Text of Press Release dated April 28, 1997, issued by
Newmont Mining Corporation and Newmont Gold Company.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrants have duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
NEWMONT MINING CORPORATION
Date: April 28, 1997 By:/s/ Timothy J. Schmitt
Timothy J. Schmitt
Vice President, Secretary
and Assistant General
Counsel
NEWMONT GOLD COMPANY
Date: April 28, 1997 By:/s/ Timothy J. Schmitt
Timothy J. Schmitt
Vice President, Secretary
and Assistant General
Counsel
<PAGE>
EXHIBIT INDEX
Exhibit 20(a) Text of Press Release dated April 28, 1997
<PAGE>
Exhibit 20(a)
FIRST QUARTER EARNINGS NEARLY DOUBLE TO 21 CENTS PER SHARE
AS HIGHER PRODUCTION AND LOWER COSTS OFFSET WEAK GOLD PRICE
DENVER, April 28, 1997 -- Newmont Mining Corporation and Newmont Gold
Company earned 21 cents per share in the first quarter of 1997, compared with
11 cents in the year earlier period, as total equity gold production rose 37
percent and total cash costs per ounce of production were reduced 17 percent.
"It was an outstanding quarter in which every operation exceeded its
production target and achieved significantly lower costs," said Ronald C.
Cambre, Newmont's Chairman, President and Chief Executive Officer. "As an
essentially unhedged company, the gain came despite a $48 drop in our realized
gold price, and underscores the inherent quality of our assets and the
potential earnings impact our shareholders can expect from appreciating gold
prices."
Mr. Cambre also noted that the Company's success in improving the
operating rates and efficiency of its facilities gives confidence that it can,
over time, achieve similar gains at Santa Fe Pacific Gold Corporation, where
the start-up of new facilities has resulted in higher operating costs.
Shareholders of Santa Fe and Newmont Mining are scheduled to vote on May 5 on
the merger of the two companies.
During the quarter, Newmont Mining earned $20.4 million, compared with
$10.7 million in the first three months of 1996, while its 91-percent-owned
subsidiary, Newmont Gold, earned $22.6 million versus $11.8 million a year
ago. Gold sales rose to $262.1 million from $154.7 million a year earlier.
Gold sales in 1997 included $79.1 million from the consolidation of results
from Minera Yanacocha in Peru following the increase in the Company's
ownership (for reporting purposes) to 51.35 percent in February.
Gold production rose to 621,800 equity ounces from 452,700 ounces, as
total cash costs, including royalty payments, fell to $192 per equity ounce
from $230. The Company realized $354 per ounce of gold sold, versus $402 an
ounce in the 1996 quarter.
Newmont's Carlin, Nevada operations produced 420,600 ounces of gold in
the quarter, a 17 percent increase from the prior year's 359,300 ounces.
Total cash costs dropped to $212 per ounce from $255 a year earlier. While
record snow fall and downtime at the roaster limited production a year ago,
productivity improved significantly in 1997. Underground mines contributed
75,100 ounces of gold, nearly double their year-earlier output. Mill
production equaled 301,700 ounces in the first quarter 1997 versus 233,600 the
prior year, with the roaster accounting for all of the gain. Leaching output
declined slightly to 118,900 ounces from 125,700 ounces the prior year.
Carlin operations are expected to produce approximately 1.8 million
ounces of gold in 1997 with further cost reductions in subsequent quarters.
Minera Yanacocha achieved record quarterly production of 228,200 ounces
(107,500 equity ounces) during the quarter, up from 178,200 ounces (67,700
equity ounces) in the 1996 period. Total cash costs of $112 per ounce
compared with $114 a year earlier. With development of a fourth mine, Cerro
Yanacocha Norte, later in the year, Minera Yanacocha has increased its
production forecast for 1997 to 900,000 ounces (452,400 equity ounces).
In February, the Peruvian Superior Court upheld Newmont's preemptive
right to increase its ownership of Minera Yanacocha to 51.35 percent from 38
percent. Opposing parties have filed a request with the Peruvian Supreme
Court to review the decision. However, the Company's Peruvian counsel has
advised that decisions of the Superior Court can be modified by the Supreme
Court only in very limited circumstances and it is unlikely that any further
review will be granted. Consequently, first quarter results reflect the
consolidation of 100 percent of Minera Yanacocha's operations, with minority
interest reported as a deduction from earnings. (Newmont recognized its
<PAGE>
ownership at 38 percent in January and 51.35 percent thereafter.) Previously,
Newmont recorded its interest in Minera Yanacocha's earnings as equity income
from affiliated companies.
The Zarafshan-Newmont joint venture in Uzbekistan produced 109,400 ounces
(54,700 equity ounces) in the first quarter, more than double the 51,400
ounces (25,700 equity ounces) produced in the 1996 period. Total cash costs
were $218 per ounce, versus $223 a year earlier. With the crushing plant and
heap leach operation performing at design rates in excess of 400,000 ounces
per year, further cost reductions are anticipated.
Minahasa Raya in Indonesia, Newmont's newest project, began production in
March, 1996. In the first quarter of 1997, it produced 39,000 ounces of gold
at a total cash cost per ounce of $192. A roaster for processing refractory
ores was commissioned without incident in January. The operation should
produce over 160,000 ounces this year.
Capital expenditures for the first quarter were $55.4 million, compared
with $73.2 million last year. Cash balances at March 31 totaled $100.8
million compared with $185.7 million at year-end 1996. Total debt of $647.9
million at March 31 was essentially unchanged from year-end.
Commenting on development projects, Mr. Cambre reported:
- Batu Hijau, the large copper/gold deposit in Indonesia,
substantially completed site preparation during the quarter.
Newmont and its partner, Sumitomo Corporation, have preliminary
commitments for $1 billion in long-term financing from export credit
agencies in the United States, Japan and Germany and have negotiated
preliminary commitments for long-term sales agreements with smelters
in Japan, Germany and Korea covering more than 500,000 tons per
annum of the project's copper/gold concentrate. The Indonesian
government has not yet issued the construction permit nor approved
Sumitomo's participation in the project. Newmont had expected both
approvals in the first quarter and has, to date, received all other
required permits and approvals on a timely basis in accordance with
its existing Contract of Work. While Newmont believes that these
approvals will be forthcoming, there can be no assurance, and if
they are not obtained on a timely basis, development of the project
would be adversely affected.
- The La Herradura project in Mexico, which is operated by Penoles
with Newmont having a 44 percent interest, has begun site
preparation and prestripping in anticipation of beginning construc-
tion of a crushing plant, Merrill Crowe plant and leach pad during
the second quarter. The deposit has reserves of 1.7 million ounces
(750,000 equity ounces) and is expected to begin production by mid-
year 1998. Capital costs are projected at $75 million ($33 million
net to Newmont).
"Looking ahead, we are on target to produce 2.6 million ounces of gold,
excluding Santa Fe, in 1997 at a total cash cost of under $200 per ounce," Mr.
Cambre said. "We eagerly await the completion of the Santa Fe merger which
will create the largest gold company in North America. Both companies are
working closely to ensure a smooth integration and to expedite realization of
the many synergies this combination presents."
This press release contains "forward-looking statements" within the
meaning of U.S. federal securities laws. The company's performance is subject
to risks, uncertainties and other factors that could cause actual results to
differ materially from these statements. Such risks include, but are not
limited to, gold price volatility, increased production costs, variances in
ore grade or recovery rates from those assumed in mining plans, failure to
receive on a timely basis necessary permits or other governmental approvals,
changes in U.S. or foreign laws or regulations, and delays in the receipt of
or failure to obtain any necessary financing. For a more detailed discussion
of such risks and other factors, see Item 1 of the 1996 Annual Reports on Form
10-K for Newmont Mining and Newmont Gold.
<PAGE>
<TABLE>
NEWMONT MINING CORPORATION AND NEWMONT GOLD COMPANY
STATEMENTS OF CONSOLIDATED INCOME
(IN MILLIONS, EXCEPT PER SHARE)
(UNAUDITED)
<CAPTION>
Three Months Ended
March 31,
1997 1996
<S> <C> <C>
Sales and other income
Sales $262.1 $ 154.7
Dividends, interest and other 4.0 7.0
266.1 161.7
Costs and expenses
Costs applicable to sales 134.3 98.1
Depreciation, depletion and amortization 40.3 28.5
Exploration and research 16.7 10.4
General and administrative 12.7 11.8
Interest, net of capitalized interest of
$1.5 in the first quarter of 1997 and
$2.1 in the first quarter of 1996 11.5 10.0
Other 1.9 3.6
217.4 162.4
Income (loss) before equity income (loss)
and income taxes 48.7 (0.7)
Equity in income (loss) of affiliated companies (1.5) 11.5
Pre-tax income 47.2 10.8
Income tax (provision) benefit (9.4) 1.0
Minority interest in income of Minera Yanacocha (15.2) -
NEWMONT GOLD NET INCOME 22.6 11.8
Minority interest in income
of Newmont Gold Company (2.2) (1.1)
NEWMONT MINING NET INCOME $ 20.4 $ 10.7
Net income per common share $ 0.21 $ 0.11
Weighted average number of shares of
common stock and common stock
equivalents outstanding:
Newmont Gold 109.9 108.8
Newmont Mining 99.5 98.5
Cash dividends declared per common share $ 0.12 $ 0.12
</TABLE>
<PAGE>
<TABLE>
NEWMONT GOLD COMPANY
(IN MILLIONS)
(UNAUDITED)
CONSOLIDATED BALANCE SHEET INFORMATION
<CAPTION>
March 31, December 31,
1997 1996
<S> <C> <C>
ASSETS
Cash and cash equivalents $ 100.8 $ 185.7
Other current assets 378.6 270.2
Current assets 479.4 455.9
Other assets, primarily property, plant
and equipment 1,752.8 1,625.2
Total assets $2,232.2 $2,081.1
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $ 313.5 $ 224.1
Long-term debt 592.2 585.0
Other liabilities 154.8 139.9
Minority interest in Minera Yanacocha 30.0 -
Stockholders' equity 1,141.7 1,132.1
Total liabilities and stockholders' equity $2,232.2 $2,081.1
RECONCILIATION OF STOCKHOLDERS' EQUITY TO NEWMONT MINING CORPORATION
March 31, December 31,
1997 1996
Newmont Gold Company's stockholders' equity $1,141.7 $1,132.1
Minority interest in Newmont Gold Company (108.1) (107.2)
Newmont Mining Corporation's stockholders' equity $1,033.6 $1,024.9
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED CASH FLOW INFORMATION
<CAPTION>
For Three Months Ended
March 31,
1997 1996
<S> <C> <C>
OPERATING ACTIVITIES
Net income $ 22.6 $ 11.8
Adjustments to reconcile net income to net
cash provided by operating activities (30.9) (7.9)
Net cash provided by operating activities (8.3) 3.9
INVESTING ACTIVITIES
Additions to property, plant and mine development (55.4) (73.2)
Other 32.5 (1.1)
Net cash used in investing activities (22.9) (74.3)
FINANCING ACTIVITIES
Net borrowings (40.5) 4.6
Proceeds from issuance of common stock - 261.5
Dividends paid (13.2) (13.2)
Net cash provided by (used in) financing activities (53.7) 252.9
Net increase in cash and cash equivalents (84.9) 182.5
Cash and cash equivalents at beginning of period 185.7 59.1
Cash and cash equivalents at end of period 100.8 241.6
</TABLE>
<PAGE>
<TABLE>
CARLIN TREND OPERATING STATISTICS
FOR THREE MONTHS ENDED MARCH 31,
Mine Production
Dry Short Tons (000)
<CAPTION>
1997 1996
Mill Leach Mill Leach
Ore Ore Waste Total Ore Ore Waste Total
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Open-Pit
Genesis 9 121 1,265 1,395 169 2,659 5,258 8,086
Northstar 152 928 3,600 4,680 71 199 564 834
Beast 83 1,982 1,750 3,815 0 0 7 7
Bootstrap 79 503 1,366 1,948 0 0 0 0
Capstone 520 445 1,347 2,312 0 0 0 0
Sold 0 308 536 844 0 264 2,903 3,167
Lantern 0 30 932 962 44 40 1,082 1,166
Bobcat 0 0 0 0 0 100 2,212 2,312
Post 2,049 0 17,047 19,096 143 80 21,280 21,503
Gold Quarry 1,312 6,171 6,168 13,651 2,487 6,768 10,518 19,773
Tusc 695 1,426 4,859 6,980 11 752 3,704 4,467
Total Open-Pit 4,899 11,914 38,870 55,683 2,925 10,862 47,528 61,315
Underground
Carlin East 77 0 0 77 68 0 0 68
Carlin Main 27 0 0 27 23 0 0 23
Deep Star 51 0 0 51 19 0 0 19
Rain 32 3 0 35 41 1 0 42
Total 187 3 0 190 151 1 0 152
Underground
Grand Total 5,086 11,917 38,870 55,873 3,076 10,863 47,528 61,467
</TABLE>
<PAGE>
<TABLE>
MILL AND LEACH PRODUCTION
<CAPTION>
1997 1996
Dry Dry
Short Grade Ounces Average Short Grade Ounces Average
Tons (Ounces Produced Recovery Tons (Ounces Produced Recovery
(000) Per Ton) (000s) Rate (%) (000s) Per Ton) (000s) Rate (%)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Mill No. 4 639 0.085 43.1 74.2 700 0.063 35.6 80.3
Mill No. 5 1,605 0.081 98.8 77.7 1,417 0.085 103.5 83.0
Mill No. 6 634 0.275 159.8 86.6 437 0.238 94.5 86.9
Total 2,878 0.125 301.7 78.9 2,554 0.105 233.6 83.0
Leach 10,100 0.020 118.9 N/A 8,654 0.023 125.7 N/A
Operations
Total Ounces 420.6 359.3
Produced (000)
</TABLE>
<PAGE>
<TABLE>
MINERA YANACOCHA OPERATING STATISTICS (100%)
FOR THREE MONTHS ENDED MARCH 31,
Mine Production
Dry Short Tons (000)
<CAPTION>
1997 1996
Leach Ore Waste Total Leach Ore Waste Total
<S> <C> <C> <C> <C> <C> <C>
Carachugo 1,778 881 2,659 457 162 619
Maqui Maqui 3,400 1,445 4,845 4,221 1,171 5,392
San Jose 1,624 773 2,397 883 163 1,046
Total 6,802 3,099 9,901 5,561 1,496 7,057
LEACH PRODUCTION
Ore placed on leach pads (Dry Short Tons) (000) 6,802 5,561
Average ore grade (Ounce Per Ton) 0.041 0.050
Ounces of gold produced (000) 228.2 178.2
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ZARAFSHAN-NEWMONT OPERATING MINAHASA OPERATING STATISTICS
STATISTICS (100%) THREE MONTHS ENDED
FOR THREE MONTHS MARCH 31, 1997
ENDED MARCH 31,
LEACH PRODUCTION MINE PRODUCTION
Dry Short Tons
1997 1996 Mill Ore Waste Total
<S> <C> <C> <S> <C> <C> <C>
Ore placed on leach 3,585 2,815 Tons Mined 374 2,709 3,083
pads (Dry Short
Tons) (000)
Average ore grade 0.050 0.048 MILL PRODUCTION
(Ounce Per Ton)
Ounces of gold 109.4 51.4 Average ore grade (Ounce Per Ton) 0.248
produced (000)
Average recovery rate (%) 90.9%
Ounces of gold produced (000) 39.0
</TABLE>
<PAGE>
<TABLE>
UNIT COST BY AREA*
FOR THREE MONTHS ENDED MARCH 31,
(IN DOLLARS PER OUNCE)
<CAPTION>
Minera Zarafshan- Total
Carlin Yanacocha Newmont Minahasa Equity
1997 1996 1997 1996 1997 1996 1997 1997 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Direct mining and $194
$289 $100 $101 $215 $222 $244 $180 $257
production costs
Capitalized mining (2) (64) 0 0 0 0 (60) (5) (51)
cost adjustments
Other 2 0 1 1 3 1 3 2 0
Cash Operating Costs 194 225 101 102 218 223 187 177 206
Royalties 14 28 11 12 0 0 5 12 22
Production taxes 4 2 0 0 0 0 0 3 2
Total Cash Costs 212 255 112 114 218 223 192 192 230
Depreciation, 56 69 36 39 55 113 89 54 67
depletion and
amortization
Reclamation and mine 1 2 3 3 1 1 2 2 2
closure
Total Production $269
$326 $151 $156 $274 $337 $283 $248 $299
Costs
Equity ounces 420.6 359.3 107.5 67.7 54.7 25.7 39.0 621.8 452.7
produced (000)
Average gold price $350
$402 $347 $402 $345 $400 $436 $354 $402
*Prepared in accordance with Gold Institute Production Cost Standard
</TABLE>
<PAGE>
<TABLE>
RECONCILIATION OF TOTAL EQUITY CASH COSTS PER OUNCE TO FINANCIAL STATEMENTS
For Three Months Ended March 31,
(Millions of Dollars Except Per Ounce Amounts)
<CAPTION>
1997 1996
<S> <C> <C>
Production Costs per Financial Statements $134.3 $98.1
Minority Interest in Production Costs of Minera (14.1) 0.0
Yanacocha
Equity Cash Costs of Minera Yanacocha 0.0 6.8
Reclamation Accruals (1.0) (0.6)
Production Costs for Per Ounce Calculation Purposes $119.2 $104.3
Equity Ounces Produced (000) 621.8 452.7
Total Equity Cash Cost per Ounce $192 $230
</TABLE>
