Newmont
Gold Medal Performance
Wayne W. Murdy,
President
Merrill Lynch Canada
Mining & Steel Conference
September 12, 2000
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Newmont Mining Corporation
Industry Overview
Demand
------
Strong - Jewelry + 4% in 1H2000
- But investment demand - 22%
Marketing initiative needed to renew gold's luster
Supply
------
Washington accord holding / other sales manageable
Mine production leveling off
Industry discipline needed in investment and hedging
Price
-----
Flat near-term without a change in US $
Increasing longer-term if industry accepts responsibility for
supply/demand issues
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Newmont Mining Corporation
Strategy for Shareholder Value
Enhance value of core assets through:
Increased efficiencies - Gold Medal Performance
Exploration and technological expertise
Strategic acquisitions
Preserve maximum leverage to gold price
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Newmont Mining Corporation
North America's Largest Gold Producer
World class assets
Low cost operations
Long-lived reserves
Basically unhedged
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Newmont Mining Corporation
World-Class Core Assets
Indonesia
[PHOTOGRAPH OF SHORELINE]
Nevada
[PHOTOGRAPH OF MINING OPERATION]
Peru
[PHOTOGRAPH OF PERUVIAN LANDSCAPE]
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Newmont Mining Corporation
Battle Mountain Merger
All stock: 24.2 mm NEM shares
(increasing total shares outstanding to 192.2mm)
Pooling of interests
BMG Attributes
--------------
Attractive Phoenix project in Nevada
9.9 mm ozs reserves
760,000 ozs low-cost annual production
$30 mm sustainable cash savings
Completion target this Fall
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Newmont Mining Corporation
Superior Standing Among Our Peers
[THREE BAR GRAPHS DEPICTING THE FOLLOWING DATA]
Highest Reserves ozs/share
NEM 0.34
PDG 0.20
ABX 0.15
HM 0.08
Low Break-Even Cost/oz*
ABX $275
NEM $284
HM $287
PDG $297
Greatest Production ozs/share
NEM 0.028
ABX 0.009
PDG 0.009
HM 0.009
Battle Mountain is accretive on each measure
*Source: Merrill Lynch for 1H2000
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Newmont Mining Corporation
Positioned to Deliver Shareholder Value
[TWO BAR GRAPHS DEPICTING THE FOLLOWING DATA]
Least Hedged
% 2000 Production
NEM 3
HM 11
PDG 38
ABX 100
Fewest Shares
Outstanding (millions)
NEM 168
HM 260
PDG 327
ABX 396
Battle Mountain retains these values
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Newmont Mining Corporation
Delivering Increased Cash Flow
[TWO BAR GRAPHS DEPICTING THE FOLLOWING DATA]
1999
----
Cash Flow - $ / Share Realized Gold Price $
NEM 2.40 285
ABX 1.72 385
PDG 1.01 341
HM 0.45 290
2000 Cash Flow - $ / Share
--------------------------
NEM 3.00
@ $285 Gold
up 25%
Battle Mountain significantly accrective to cash flow after Phoenix start up
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Newmont Mining Corporation
With Battle Mountain -
Reserves up 80% since 1996 to 66.5 mm oz
[BAR GRAPH DEPICTING THE FOLLOWING DATA]
1996 37.1
1997 39.6 + Santa Fe - 13.1
1998 52.6
1999 56.6
1999 w/BMG 56.6 + Battle Mountain - 9.9
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Newmont Mining Corporation
With Battle Mountain -
Production up 140% & Cash Cost down 20% since 1996
[BAR GRAPH DEPICTING THE FOLLOWING DATA]
Production mm ozs
1996 2.28
1997 3.96
1998 4.07
1999 4.18
2000E Proforma w/BMG 5.5
[LINE GRAPH OVERLAYING THE BAR GRAPH DEPICTING THE FOLLOWING DATA]
Cash Costs ($/oz)
1996 218
1997 187
1998 183
1999 175
2000E Proforma w/BMG 173
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Newmont Mining Corporation
With Battle Mountain - Enhanced Global Diversity
[GLOBAL MAP PINPOINTING THE FOLLOWING LOCATIONS AND DATA]
NEM Properties BMG Properties
Newmont Nevada 28.0 Holloway 0.8
Mesquite 0.5 Phoenix 5.7
La Herradura 0.7 Kori Kollo 1.8
Minera Yanacocha 16.9 Golden Giant 1.7
Zarafshan 3.0 Lihir
Minahasa 1.1 Vera/Nancy 0.4
Batu Hijau 6.4
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Newmont Mining Corporation
Nevada - Our Foundation
[PHOTOGRAPH OF MINING OPERATION]
35 years of innovation
Produced 29 million ounces
28 million ounces of reserves
Production
1999 2.5 mm/ozs.
2000E 2.9 mm/ozs.
~ $208/ounce total cash costs
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Newmont Mining Corporation
Nevada: A Core Asset
Unparalleled flexibility
9 open pit & 4 underground mines
17 processing facilities
2 million acre land position
[LOCATION MAP GRAPHIC IDENTIFYING NEWMONT CHECKERBOARD PROPERTY AND NOTING
LOCATION OF TWIN CREEKS, LONE TREE, TRENTON CANYON, PHOENIX, DEEP POST, DEEP
STAR, GOLD QUARRY AND MULE CANYON]
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Newmont Mining Corporation
Phoenix Attributes
Synergies
Lone Tree Autoclave
Surplus mining equipment
Contribution
Secures Nevada production @ ~ 2.7mm ozs.
At current cash cost
Annually 2003 - 2007
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Newmont Mining Corporation
Phoenix Projections
Average annual production
Gold: 390,000 ozs
Silver: 1,350,000 ozs
Copper: 27,500,000 lbs
Average cash costs
$140/oz Initial years
$150/oz 13 years LOM
Capital cost - $200 million
Construction July, 2001
Leach production January, 2002
Mill production January, 2003
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Newmont Mining Corporation
Exploration Success
Nevada
------
Largest exploration effort in the state
Deep Star/Deep Post underground advances
Gold Quarry - high grade, underground targets at Chukar Footwall
Lone Tree definition drilling projected to increase reserve base by
0.5 mm to 1 mm oz
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Newmont Mining Corporation
Batu Hijau Mine for the 21st Century
[PHOTOGRAPH OF SHORELINE]
56.25% Economic Interest
Reserves 10.5 B lbs. Copper
11.8 mm ozs. Gold
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Newmont Mining Corporation
Batu Hijau Potential
2000E
-----
Equity production 300 mm lbs. copper
180,000 ozs. gold
Total cash costs ~$0.55/lb. copper
Life of Mine
------------
Annual Equity production 340 mm lbs. copper
270,000 ozs. gold
Total cash costs <$0.50/lb. copper
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Newmont Mining Corporation
Minera Yanacocha, Peru: Our Golden Growth Story
[PHOTOGRAPH OF PERUVIAN LANDSCAPE]
51% owned
Reserves: 32.9 mm ozs.
Production
1999: 1.65 mm ozs. of gold
2000E: 1.95 mm ozs. of gold
< $90/oz. Total cash cost
4 open-pit mines, 2 processing facilities
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Newmont Mining Corporation
Yanacocha - Profitable Growth
[BAR GRAPH OF PRODUCTION AND LINE GRAPH OF CASH COSTS DEPICTING THE FOLLOWING
DATA]
Equity Production (000 oz)
--------------------------
Production mm ozs Cash Costs ($/oz)
1996 308 100
1997 531 87
1998 686 95
1999 850 103
2000E 1000 90
[BAR GRAPH DEPICTING THE FOLLOWING DATA]
Equity Reserves (mm oz)
----------------------
1996 3.1
1997 7.1
1998 10.6
1999 16.9
2000E 20+
Capex - through Year-End 1999 $480mm
2000E $230mm
------
$710mm
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Newmont Mining Corporation
Newmont in the New Millennium
Annual Targets*
---------------
Gold production + 5 mm oz
Total cash cost ~ $165/oz
Copper production 300 mm lbs
Total cash cost < $0.50
Strong cash flow
Debt to cap ratio 25-30%
Highest leverage to rising metal prices
* Assuming completion of BMG merger and Phoenix start up
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Newmont Mining Corporation
Yanacocha Exploration
[LOCATION MAP GRAPHIC IDENTIFYING YANACOCHA DISTRICT EXPLORATION AND NOTING
LOCATION AND DISTINCTION OF (WITH FEW OUTLYING AND JOINT
RESOURCES/PROJECTS/PROSPECTS):
MINE, RESERVES & MINERALIZED MATERIAL:
--------------------------------------
EL TAPADO
SAN JOSE
CARACHUGO
CERRO YANACOCHA (PARTIAL)
C. QUILISH (PARTIAL)
PROJECTS OR PROSPECTS:
----------------------
CHUGURES
QUECHER
C.NEGRO
CORIMAYO
KUPFERTAL
CERRO YANACOCHA (PARTIAL)
MINAS CONGA EXPLORATION TARGETS:
--------------------------------
AMARO
LINDERO
MISHACOCHA
PEROL
CHAILHUAGON
MINAS CONGA:
------------
40% NEWMONT
60% BUENAVENTURA
YANACOCHA:
----------
51.35% NEWMONT
43.65% BUENAVENTURA
5.00% INTERNATIONAL FINANCE CORP.
SOLITARIO:
----------
100% NEWMONT]
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Newmont Mining Corporation
Exploration Success
Peru
----
Estimated y/e reserves 40mm ozs. + 20%
Best hole to date at Corimayo -
428m @ 3.5 g/t, including 70m @ 14.8 g/t
Add to mineralized material at Minas Conga (40% equity)
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Newmont Mining Corporation
PRIVATE SECURITIES LITIGATION REFORM ACT SAFE HARBOR STATEMENT
These materials include forward-looking information and statements about Newmont
Mining Corporation, Battle Mountain Gold Company and the combined company after
completion of the transaction that are intended to be covered by the safe harbor
for "forward-looking statements" provided by the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are statements that are not
historical facts. These statements include financial projections and estimates
and their underlying assumptions; statements regarding plans, objectives and
expectations with respect to future operations, products and services; and
statements regarding future performance. Forward-looking statements are
generally identified by the words "expect," "anticipates," "believes,"
"intends," "estimates" and similar expressions. The forward-looking information
and statements in these materials are subject to various risks and
uncertainties, many of which are difficult to predict and generally beyond the
control of Newmont and Battle Mountain, that could cause actual results to
differ materially from those expressed in, or implied or projected by, the
forward-looking information and statements. These risks and uncertainties
include those discussed or identified in the public filings with the U.S.
Securities and Exchange Commission (SEC) made by Newmont and Battle Mountain;
risks and uncertainties with respect to the parties' expectations regarding the
timing, completion and accounting and tax treatment of the merger, the value of
the merger consideration, production and development opportunities, conducting
worldwide operations, earnings accretion, cost savings, revenue enhancements,
synergies and other benefits anticipated from the transaction; and the effect of
gold price and foreign exchange rate fluctuations, and general economic
conditions such as changes in interest rates and the performance of the
financial markets, changes in domestic and foreign laws, regulations and taxes,
changes in competition and pricing environments, the occurrence of significant
natural disasters, civil unrest and general market and industry conditions.
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Newmont Mining Corporation
ADDITIONAL INFORMATION
Information regarding the identity of the persons who may, under SEC rules, be
deemed to be participants in the solicitation of stockholders of Battle Mountain
in connection with the proposed merger, and their interests in the solicitation,
are set forth in a Schedule 14A filed on the date of these materials with the
SEC. Newmont and Battle Mountain will be filing a proxy statement/prospectus and
other relevant documents concerning the proposed transaction with the SEC. A
preliminary version of these materials has been filed with the SEC. Investors
are urged to read the definitive proxy statement/prospectus when it becomes
available and any other relevant documents filed with the SEC because they will
contain important information on the proposed transaction. Investors will be
able to obtain the documents free of charge at the SEC's website (www.sec.gov).
In addition, documents filed with the SEC by Newmont may be obtained free of
charge by contacting Newmont Mining Corporation, 1700 Lincoln Street, Denver, CO
80203, (303) 863-7414. Documents filed with the SEC by Battle Mountain will be
available free of charge by contacting Battle Mountain Gold Company, 333 Clay
Street, 42nd Floor, Houston, Texas 77002, (713) 650-6400. Investors should read
the definitive proxy statement/prospectus carefully when it becomes available
before making any voting or investment decision.
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Newmont
Gold Medal Performance
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Newmont Mining Corporation
Yanacocha: Corimayo
[LOCATION MAP GRAPHIC INDICATING AREAS OF SILIFICATION, LEACHED SILICA AND
CLAY ALTERED INTRUSIVE DIATREME]
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Newmont Mining Corporation
Carlin Deep Post Underground
[PICTORAL DIAGRAM INDICATING LOCATIONS OF EL 4480 PORTALS NOVEMBER 1999, EL 4350
PORTALS APRIL 1999, LOWER POST-BETZE PIT, MAIN HAULAGE DECLINE, VENTILIATION
RAISE, BACKFILL DECLINE, UG SHOP, UG BACKFILL PLANT AND ACCESS RAMP]
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Newmont Mining Corporation
Gold Margin Corridor
[ARIAL PHOTOGRAPH INDICATING LOCATION OF POST PIT, DEEP POST, NGC/BGMI
BORDER, POST FAULT, DEEP STAR FAULT, EXPLORATION DRIFT, DRIFT ADVANCE
(7/31/2000, 41% COMPLETE), DEEP STAR OREBODY AND GEN FAULT]
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Newmont Mining Corporation
Gold Quarry: Chukar Footwall Target
[PHOTOGRAPH OF CHUKAR FACING SOUTHWEST INDICATING FOOTWALL TARGET AREAS]
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