NEWMONT GOLD MEDAL PERFORMANCE
MINING INVESTMENT FORUM
DENVER
OCTOBER 4, 2000
<PAGE>
GOLD IS AT A CYCLICAL LOW
[LINE GRAPH FROM 1990 TO 2001 WITH GOLD PRICES BEGINNING IN THE $400 - $420
RANGE, A RANGE OF $360 - $400 FROM 1994 TO 1996, A RANGE OF $250 - $300 SINCE
1998 AND ENDING IN $260 - $280 RANGE AND INDICATING RISES LABELLED AS "GULF
WAR," "STRONG FUND BUYING; SOROS/GOLDSMITH DEAL," AND DECLINES LABELLED
"INCREASING CENTRAL BANK SALES," "BRE-X SCANDAL," "SWISS GOLD SALES RECOMMENDED"
AND "IMF SALES DISCUSSIONS, UK TREASURY ANNOUNCES GOLD AUCTIONS" AND LOWPOINTS
LABELLED "LTCM, DOW DROPS 510" AND "WASHINGTON ACCORD"]
Source: GFMS, London PM Fix
<PAGE>
CONVENTIONAL WISDOM: TOO MUCH SUPPLY
Fabrication demand has grown 3% annually since 1990
Mine supply has grown less than 2%
[CHART FROM 1980 TO 2000 REFLECTING (A) BAR GRAPH OF FABRICATION DEMAND
INCREASING AT A HIGHER RATE THAN (B) LINE GRAPH OF MINE PRODUCTION]
Central Bank sales + lending have doubled since 1990 and = 25% of demand
Source: GFMS, London PM Fix
<PAGE>
ANOTHER IMPORTANT PRICE DRIVER:
THE STRONG DOLLAR
US TRADE WEIGHTED DOLLAR VS GOLD PRICE
[DOUBLE LINE GRAPHS REFLECTING ROUGHLY INVERSE RELATIONSHIP OF US TRADE WEIGHTED
DOLLAR TO GOLD PRICE]
Source - Goldman Sachs Research
<PAGE>
THE DOLLAR'S IMPACT ON GOLD:
Stimulates Production: % change since 1/1/97
---------------------
US$ vs major gold producer currencies
Canada $0.6667 -9%
Australia $0.5455 -31%
South Africa $0.1369 -36%
Reduces Consumption:
--------------------
US$ vs major consumer currencies
India $0.0218 -22%
EU* $0.8796 -26%
Thailand $0.0236 -40%
Turkey $0.000002 -84%
* From inception on 1/1/99
<PAGE>
CONCLUSION
Supply issues are moderating
Gold's recovery is also currency related
THINK GOLD FOR PORTFOLIO BALANCE
<PAGE>
NEWMONT'S STRATEGY
Marshal Our Unique Strengths:
----------------------------
World class core assets
Low-cost operations / in-place infrastructure
Exploration and technological expertise
Global skill sets
In Order To:
-----------
Generate strong cash flow
Preserve maximum leverage to gold price
Continually improve asset quality
<PAGE>
2000 PERFORMANCE*
Operations Ahead of Plan
------------------------
Replace reserves 56.6 mm ozs
Gold production 4.8 mm ozs @ $173/oz
Copper production 290 mm lbs @ $0.55/lb
Financials are Price Dependent
------------------------------
Assuming a spot gold price of $283
Operating EPS - approximately $0.25
Cash flow - approximately $500 mm, or $3.00/share
Capital investments - approximately $435 mm
Debt reduction - approximately $40 mm
*excluding BMG
<PAGE>
FOCUS ON CASH FLOW
[TWO BAR GRAPHS DEPICTING THE FOLLOWING DATA]
1995 2000E*
Realized Gold Price - $/oz $385 $283
Cash flow - $mm $152 $500
Cash flow - $/share $1.75 $3.00
*Excluding BMG
<PAGE>
BATTLE MOUNTAIN MERGER
All stock: 24.2 mm NEM shares
Pooling of interests
BMG Attributes
--------------
Attractive Phoenix project in Nevada
9.9 mm ozs reserves
760,000 ozs low-cost annual production
$30 mm/yr sustainable cash synergies
Completion in 4th quarter
<PAGE>
HISTORY OF ACCOMPLISHMENT
[FOUR PIE CHARTS SHOWING INCREASING IMPORTANCE OF PERU, S.E. ASIA AND OTHER
MINING SOURCES RELATIVE TO NEVADA FOR RESERVES AND PRODUCTION AND DEPICTING THE
FOLLOWING DATA]
1995 2000*
Reserves 28.8mm ozs 66.5mm ozs
Per Share 0.33 0.35
Production 1.86mm ozs 5.5mm ozs
Per Share 0.021 0.029
Total Cash Cost $210/oz $173/oz
*Including BMG on a pro forma basis
<PAGE>
NEWMONT GOING FORWARD
Growing reserves 66.5 mm ozs
Gold production + 5 mm ozs @ $165 - 170/oz
Copper production 325 mm lbs @ <$0.50/lb
Strong cash flow
Debt to cap ratio Goal: 25 - 30%
<PAGE>
WORLD CLASS CORE ASSETS
[GLOBAL GRAPHIC WITH PICTURES OF NEVADA, YANACOCHA AND BATU HIJAU]
<PAGE>
BATU HIJAU MINE FOR THE 21ST CENTURY
Reserves 10.5 B lbs. Copper
11.8 mm ozs. Gold
56.25% Economic Interest
LOM Production 600 mm lbs Copper
480,000 ozs Gold
Total Cash Costs <$0.50/lb Copper
<PAGE>
BATU HIJAU
MINE FOR THE 21ST CENTURY
[PHOTOGRAPH WITH MARK INDICATING BATU HIJAU MINE]
<PAGE>
BATU HIJAU PROGRESS
Production increasing
Copper price improving
Costs declining
[TWO DOUBLE BAR GRAPHS DEPICTING THE FOLLOWING DATA]
1Q 2Q 3QE 4QE
-- -- --- ---
mm#'s CU 110 105 140 160
000ozs AU 57 55 83 105
Copper price
improving 79 81 87 90
Costs declining 65 59 55 46
2000E 2001E
mm#'s CU 515 555
000 ozs AU 300 415
Copper price
improving 85
Costs declining 55 46
Costs & Realization - cents/pound CU
<PAGE>
COPPER PRICE CYCLE IS FAVORABLE
[LINE GRAPH FROM 1990 TO 2000 WITH COPPER PRICES IN US$/LB BEGINNING IN THE
$1.00 - $1.25 RANGE, AVERAGING $1.08 FROM 1990 TO 1996, CURRENT SPOT $0.90 PLUS
50% IN 1998 AND ENDING IN $0.75 - $1.00 RANGE]
<PAGE>
NEVADA -- OUR FOUNDATION
[PHOTOGRAPH OF NEVADA MINE]
35 Years of Operating Excellence
30 Million Ounces Produced
34 Million Ounces of Reserves*
2000E Production 2.9 mm/ozs
~ $208/ounce Total Cash Costs
* with BMG
<PAGE>
NEVADA: UNPARALLED FELXIBILITY,
INNOVATIVE SOLUTIONS
[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]
<PAGE>
HIGH-RETURN PROJECT:
DEEP POST UNDERGROUND
[PICTORAL DIAGRAM INDICATING LOCATIONS OF EL 4480 PORTALS NOV 1999, EL 4350
PORTAL APRIL 1999, LOWER POST-BETZE PIT, MAIN HAULAGE DECLINE, VENTILATION
RAISE, BACKFILL DECLINE, UG SHOP, UG BACKFILL PLANT, ACCESS RAMP AND RECENT
DRILL RESULTS: 102'/1.43 OPT, 135'/1.25 OPT WITH EL MARKED OF 3700, 3900, 4100,
4350]
<PAGE>
DEEP POST UNDERGROUND
Reserves 2.3mm oz @ 0.77 opt
Production 2Q 2001
Average mining rate 1,500 tpd
Average annual production 380,000 ozs (2003-2006)
Total cash costs <$150/oz
Pre-production Cap Ex: $65mm
<PAGE>
HIGH-RETURN PROJECT: PHOENIX
[PHOTOGRAPH OF PHOENIX PROJECT INDICATING LOCATION OF FORTITUDE PIT, COPPER
BASIN, TOWN OF BATTLE MOUNTAIN AND COPPER CANYON]
<PAGE>
PHOENIX
Reserves:
6.1mm ozs @ 0.037 opt
Upside potential
Production:
Leach in Jan 2002
Mill in Jan 2003
Gold 390,000 ozs
Silver 1,350,000 ozs Average Annual
Copper 27,500,000 lbs
Total cash costs $150/oz - 13 year LOM
Cap Ex - $200mm
<PAGE>
MINERAL YANACOCHA, PERU
OUR GOLDEN GROWTH STORY
32.9mm ozs Reserves
51.35% owned 2000E Production 1.85 mm ozs
< $90/oz Total Cash Cost
Largest Gold Producer in Latin America
Exciting Growth Potential
<PAGE>
MINERA YANACOCHA
[PHOTOGRAPH OF PERUVIAN LANDSCAPE]
<PAGE>
YANACOCHA PROFILE
[TWO AREA LINE GRAPHS DEPICTING THE FOLLOWING DATA]
Reserves
--------
1994 1995 1996 1997 1998 1999 2000E
---- ---- ----- ---- ---- ---- -----
Carachugo 2.3 1 1.3 1.2 1.5 3.9 1.2
Maqui Maqui 1.2 2.2 1.5 0.9 0.4 0.2 0.1
San Jose 1.7 1.5 1.4 1.2 1 0.5
Yanacocha 1.3 7.2 9.2 13.8 15.6
La Quinua/El Tapado 3 7.1 9.3 11.6
Other 0.5 0.3 1.2 4.7 8.5
[IN MM OZ]
Production
----------
1993 1994 1995 1996 1997 1998 1999 2000E
---- ---- ---- ---- ---- ---- ---- -----
Carachugo 0.14 0.37 0.34 0.1 0.28 0.6 0.41 0.9
Maqui Maqui 0.1 0.46 0.7 0.71 0.57 0.37 0.14
San Jose 0.3 0.09 0.3 0.84 0.57
Yanacocha 0.01 0.12 0.46 0.98
[IN MM OZ]
<PAGE>
HIGH RETURN PROJECT:
LA QUINUA
Reserves: 9.3mm ozs
Average annual production: 1mm ozs
Total cash costs: ~ $125/oz
Initial capital: $260mm
<PAGE>
YANACOCHA DISTRICT
[LOCATION MAP GRAPHIC IDENTIFYING YANACOCHA DISTRICT EXPLORATION AND NOTING
LOCATION AND DISTINCTION OF: MINE, RESERVES & MINERALIZED MATERIAL OR PROJECTS
OR PROSPECTS:
LA QUINUA
PEROL
SAN JOSE
CARACHUGO
CHAQUICOHA
CHAILHUAGON
CERRO YANACOCHA (PARTIAL)
MAQUI MAQUI
YANACOCHA:
51.35% NEWMONT
43.65% BUENAVENTURA
5.00% INTERNATIONAL FINANCE CORP.
MINAS CONGA:
40% NEWMONT
60% BUENAVENTURA
0% INTERNATIONAL FINANCE CORP.
SOLITARIO:
100% NEWMONT
0% BUENAVENTURA
0% INTERNATIONAL FINANCE CORPORATION
BUENAVENTURA:
0% NEWMONT
100% BUENAVENTURA
0% INTERNATIONAL FINANCE CORP.
NORTHER PERU JV:
65% NEWMONT
35% BUENAVENTURA]
0% INTERNATIONAL FINANCE CORP.
<PAGE>
YANACOCHA EXPLORATION
[CLOSE-UP LOCATION MAP GRAPHIC IDENTIFYING YANACOCHA EXPLORATION
AND NOTING LOCATION AND DISTINCTION OF:
MINE, RESERVE, RESOURCE:
EL TAPADO
SAN JOSE
LA QUINUA
CARACHUGO
MAQUI MAQUI (PARTIAL)
CERRO YANACOCHA (PARTIAL)
CERRO QUILISH (PARTIAL)
CERRO NEGRO (PARTIAL)
PROJECTS OR PROSPECTS:
CHAQUICOCHA
CORIMAYO
KUPFERTAL
MAQUI MAQUI (PARTIAL)
CERRO YANACOCHA (PARTIAL)
CERRO QUILISH (PARTIAL)
CERRO NEGRO (PARTIAL)]
<PAGE>
EVEN OUR "SMALL" MINES ARE BIG AND
GENERATE FREE CASH FLOW
Cash Cost
Managed ozs Equity ozs $/Equity oz
----------- ---------- -----------
Zarafshan, Uzbekistan 450,000 225,000 $130
Minahasa, Indonesia 350,000 350,000 135
Golden Giant, Ontario* 325,000 325,000 150
Kori Kollo, Bolivia* 270,000 230,000 210
Mesquite, California 150,000 150,000 195
Holloway, Ontario* 110,000 93,000 210
Vera/Nancy, Australia* ---- 115,000 100
La Herradura, Mexico ---- 50,000 135
------------ ----------- -----
1,655,000 1,538,000 $156
*BMG
<PAGE>
GOLD MEDAL PERFORMANCE
Exploration Success
World Class Assets
Low Cost Production
High Return Projects
High Leverage to Gold Price
<PAGE>
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.
<PAGE>
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.
