GOLD MEDAL PERFORMANCES
NEVADA REVIEW & OUTLOOK
LEE KRUGERUD
Vice President,
Business Affairs,
North American Operations
[GLOBE GRAPHIC]
MIF NEVADA MINE TOUR
OCTOBER 5, 2000
Newmont
<PAGE>
NEVADA: OUR FOUNDATION
- Production
- 1999: 2.5 mm oz
- 2000E: ~ 2.9 mm oz
- 2000E:
- < $208/oz total cash costs
- 35 years of innovation
- Produced 30 mm oz
- 34 mm oz of reserves w/BMG
- 2,800 employees
[PHOTOGRAPH OF MINING OPERATION]
Newmont
<PAGE>
NEVADA: A LONG-LIVED CORE ASSET
Unparalleled mining and processing flexibility
- 9 open pit & 4 underground mines
- 17 processing facilities
2 mm 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]
Newmont
<PAGE>
PROCESSING PROFITABLE OUNCES (mm)
[BAR GRAPH DEPICTING THE FOLLOWING DATA]
1996 1997 1998 1999 2000E
Leach 0.8388 0.8062 0.6925 0.6 0.696
Oxide Mill 0.7922 1.0008 0.9141 0.55 0.464
Ref. Mill 0.699 0.973 1.1634 1.35 1.74
Total cash cost $232 $205 $209 $211 < $208
--------------- ---- ---- ---- ---- ------
Total prod cost $302 $268 $273 $263 $260
Newmont
<PAGE>
NEVADA - QUARTERLY PRODUCTION PROFILE
[TWO BAR GRAPHS DEPICTING THE FOLLOWING DATA]
1999 2000
---- ----
1Q 2Q 3Q 4Q 1Q 2Q 3QE 4QE
607 585 597 709 609 672 750 850
Deep Post - - 100 800 125 800 1050 500
Ore (000) tons
Avg grade 0.53 opt
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
Philosophy - driving out inefficiencies
Engaging the workforce to achieve excellence
Expected results
Improved productivity
Lower costs
Higher cash flow
Newmont
<PAGE>
MANAGING CASH FLOW
Nevada Capital Expenditures ($mm)
1998 1999 2000E
Nevada Capital Expenditures ($mm) 470 590 690
Completed
- Twin Creeks autoclaves
- Lone Tree Flotation plant
- Deep Star underground mine
- Post stripping
- Trenton Canyon
- Mule Canyon
- Bioleach/biomill process
Current expenditures
- Deep Post underground
- Gold Quarry expansion
Future expenditures
- Phoenix
- Twin Creeks expansion
- Leeville
Newmont
<PAGE>
PHOENIX PROJECT
Historic mining district dating from 1860s
Gold reserves: 6.1 mm oz @ 0.037 opt
Significant upside potential
Copper reserves 430 mm lbs @ 0.15%
Newmont
<PAGE>
PHOENIX PROJECT
[PHOTOGRAPH OF PHOENIX PROJECT INDICATING LOCATION OF FORTITUDE PIT, COPPER
BASIN, TOWN OF BATTLE MOUNTAIN AND COPPER CANYON]
Newmont
<PAGE>
PHOENIX SYNERGIES
Mining rate: 40 - 45 mm tons/yr
12 haul trucks From Mesquite &
2 shovels Mule Canyon
2 drills saves $25 - 30 mm capital
7 support equipment
Autoclave + SX-EW vs SART + smelting saves $25/oz,
Nevada procurement and centralization or $10 mm/yr LOM
Newmont
<PAGE>
PHOENIX / LONE TREE INTEGRATION
[DIAGRAM WITH THE FOLLOWING STEPS: (PHOENIX PART) SAG MILL, BALL MILL, GRAVITY
CIRCUIT (FREE GOLD PROCEEDS DIRECTLY TO GOLD BULLION), FLOTATION CIRCUIT (TAILS
EXIT), CONCENTRATE TRUCKED TO LONE TREE, (LONE TREE PART) LONE TREE AUTOCLAVE,
SOLID/LIQUID SEPARATION, PART TO CU SX-EW, CU CATHODES AND SOLD AND PART TO
CARBON-IN-LEACH, GOLD BULLION AND SOLD]
Newmont
<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>
PHOENIX CONTRIBUTION
As a project:
- Best undeveloped gold project in North America
- High return at $300 gold
As part of Newmont's NV base:
- Secures production @ ~ 2.7 mm oz annually 2003 - 2007 @ a cash cost of
~$205/oz
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
CARLIN OPERATIONS
TRENT TEMPEL
General Manager,
Carlin Operations
[PHOTOGRAPH OF MINING OPERATIONS]
Newmont
<PAGE>
CARLIN PROFILE
% Total Nevada
--------------
Reserves 14.1 mm oz = 50%
Mining 70 mm tons/yr = 33%
Through Aug 2000 mine production - 1,383,000 oz = 57%
Through Aug 2000 process production - 801,000 oz = 46%
Mining fleet
------------
41 trucks, 7 shovels
Processing
----------
1 roaster
3 oxide mills
4 oxide leach pads
Newmont
<PAGE>
CARLIN ROASTER THROUGH AUGUST 2000 MATRIX
Roaster - 1.9 mm tons @ 0.276 opt, 88.4% recovery = 466,000 oz
85,000 tons from Lone Tree flotation @ 0.854 opt
312,000 tons from Carlin and Deep Star @ 0.447 opt
346,000 tons from Gold Quarry @ 0.157 opt
1,029,000 tons from Deep Post @ 0.232 opt
128,000 tons from other Carlin @ 0.164 opt
Newmont
<PAGE>
IMPROVING RASTER PRODUCTIVITY
[THREE BAR DIAGRAMS DEPICTING THE FOLLOWING DATA]
Throughput (000 tons)
1998 1999 2000E
2325 2800 2900
Availability %
1998 1999 2000E
72 85 87.5
oz Produced (000)
1998 1999 2000E
470 590 690
Grade/recovery
98 99 00E
Grade opt 0.23 0.25 0.28
Recovery 90% 90% 89%
Newmont
<PAGE>
CARLIN HIGHLIGHTS
Deep Post total: 3 mm oz @ 0.74 opt
- Open pit production through 1st half of 2001
- Underground
- decline advanced 17,402 feet through September
- production 2Q 2001 through 2009
Gold Quarry expansion: 5.6 mm oz @ 0.06 opt
- Stripping began in April
- Mining from 2001 through 2009
- Ounces produced from mid-2002 through 2012
Biomill project:
- Currently on pad 2.5 mm @ 0.07 opt
- Production through Mill 5 began in June
Newmont
<PAGE>
CARLIN BIOMILLING
Capital: $4.5 mm
Project tons: 25 mm @ 0.07 opt
Recovery rate: projected to be 55-65%
Bio-oxidation cycle: 100 - 180 days
Total production: 1.05 mm oz (80,000 oz in 2000)
Cash cost per ton processed: $7.50 - $8.00
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
Management - Change Acceleration Process (CAP) session
New incentive compensation program
Safety bonus
Employee workout sessions
Reliability center maintenance at roaster
Lab productivity improvements (mapping)
Newmont
<PAGE>
CARLIN 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, VENTILIATION
RAISE, BACKFILL DECLINE, UG SHOP, UG BACKFILL PLANT, ACCESS RAMP AND RECENT
DRILL RESULTS: 102'/1.43 OPT, 135'/1.25 OPT]
Newmont
<PAGE>
CARLIN DEEP POST UNDERGROUND
LOM: 2.3 mm oz @ 0.77 opt
Commence production: 2Q 2001
Annualized mining rate: 1,500 tpd
Average annual production: 380,000 oz (2003-2006)
Total cash costs: $150/oz
Pre-production cap ex: $65 mm
Sustaining cap ex: $24 mm
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
TWIN CREEKS OVERVIEW
ALI SOLTANI
General Manager,
Western Nevada
[PHOTOGRAPH OF MINING OPERATION]
Newmont
<PAGE>
TWIN CREEKS PROFILE
Newmont's largest Nevada mine
% Total NV
----------
Reserves 6.9 million ozs 25%
Mining 100 million tons/yr 50%
Through 3rd qtr 2000 mine production 808,000 contained ozs 34%
Through 3rd qtr 2000 process production 893,000 recovered ozs* 40%
Mining fleet
33 trucks, 5 shovels
Processing
2 autoclaves
2 oxide mills
3 oxide leach pads
Safety
Recipient of large mine safety award by Nevada mining association
*Includes Newmont foreign ore sources
Newmont
<PAGE>
TWIN CREEKS AUTOCLAVES
1ST 3 QTRS OF 2000 MATRIX
Autoclaves - 2.445 Million Tons @ 0.264 opt - 90.6% Recovery = 584,000 ozs
2,145,000 Tons from Twin Creeks @ 0.146 opt
191,000 Tons from Deep Star @ 1.128 opt
78,000 Tons from Post @ 1.149 opt
31,000 Tons from Lone Tree Flotation @ 0.809 opt
Newmont
<PAGE>
TWIN CREEK IMPROVED PRODUCTIVITY
[THREE LINES GRAPHS DEPICTING THE FOLLOWING DATA]
Manpower
1997 1998 1999 2000E
922 769 647 647
Oz. / Employee
1997 1998 1999 2000E
685 1218 1446 1522
Total Tons Mined / Employee
1997 1998 1999 2000E
124729 143043 159667 162287
Newmont
<PAGE>
TWIN CREEK OPPORTUNITIES
Backfilling opportunity to reduce life-of-mine mining costs by 15%
Gold Medal Performance
- Hot Change
- Carbon Stripping
- Haul Truck Transmissions
Newmont
<PAGE>
TWIN CREEKS MEGA PIT
[AREA DIAGRAM INDICATING AREAS CONTAINING 1.0 MM CONTAINED OZS, 4.1 MM CONTAINED
OZS. AND 1.8 MM CONTAINED OZS]
2000 - 20004
> $180 Gold Price
2004 - 2010
> $250 Gold Price
2006 - 2010
> $280 Gold Price
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
LONE TREE COMPLEX OVERVIEW
Ali Soltani
General Manager,
Western Nevada
[PHOTOGRAPH]
Light Weight Truck Bed - 10% Higher Load Factor
Newmont
<PAGE>
LONE TREE COMPLEX PROFILE
% Total NV
----------
Reserves 2.5 million oz 9%
Mining 31 million tons/year 16%
Through 3rd qtr 2000 mine production - 425,000 oz 18%
Through 3rd qtr 2000 process production - 318,000 ozs* 14%
Mining fleet - 19 trucks, 3 shovels, 2 backhoes
Processing
Autoclave
Flotation plant
2 ROM leach pads
*Includes foreign ore processing but not concentrates processed at other sites
Newmont
<PAGE>
LONE TREE COMPLEX PROFILE CONTINUED
Safety
Process Operations - 7 years No LTA
Mine Operations - 2 years No LTA
Productivity
Autoclave
15% Higher Throughput Rate in 2000 vs. 1999 Actual
25% Lower Unit Costs in 2000 vs. 1999 Actual
Flotation
10% Higher Throughput Rate in 2000 vs. 1999 Actual
10% Lower Unit Costs in 2000 vs. 1999 Actual
Newmont
<PAGE>
LONE TREE COMPLEX OPPORTUNITIES
Infill drill program
Gold Medal Performance
Phoenix synergies
Western Nevada synergies
Carbon handling
Refining
Mine resources
[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]
Newmont
<PAGE>
GOLD MEDAL PERFORMANCE
LEROY SCHUTZ
Manager,
Mine Geology Nevada
[PHOTOGRAPH OF MINING OPERATION]
Newmont
<PAGE>
LARGEST EXPLORATION PROGRAM IN NEVADA
[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]
Newmont
<PAGE>
NEVADA MINE GEOLOGY: MID-YEAR RESULTS UPDATE
Lone Tree:
- 55 holes completed - excellent assay results in the Wayne Zone and in
Antler carbonate rocks west of the Wayne Zone.
Gold Quarry:
- Promising results for possible u/g operation at Chukar Footwall.
Hardie Footwall extension (Carlin East underground):
- Underground drilling defined local 0.40 to 1.00 oz/st pods.
Gold Margin underground drift:
- Continued exploration drifting and drilling in the Deep Post and Deep
Star corridor.
Deep Post underground development:
- Outstanding results in the first two levels of development drilling.
Newmont
<PAGE>
LONE TREE RESERVE CONVERSION
- Targeting 0.50 to 1.0 million ox for 2000.
- Modeling gaps were drilled over 1 mile strike length, returning intercepts
with higher than modeled grades.
- Wayne Zone intercept: 168 ft/0.195 oz/st
- Antler sequence intercept: 72 ft/0.249 oz/st
Newmont
<PAGE>
LONE TREE
[AREA DIAGRAM INDICATING LOCATION OF FOLLOWING]
Havallah Fm
Valmy Fm
Antler Sequence
Intrusive
Tertiary Sediments
Newmont
<PAGE>
LONE TREE INFERRED RESOURCE DRILLING
[PHOTOGRAPH/DIAGRAM CROSS-SECTION OF MINING OPERATION INDICATING CURRENT PIT, MI
ULTIMATE PIT, MII ULTIMATE PIT AND EXISTING HOLES AND THE STRATE OF QUAL,
HAVALLAH FM. UPPER MEMBER, BASE OF OXIDATION, HAVALLAH FM. LOWER MEMBER,
GOLCONDA, ANTLER SEQUENCE, TRHUST, FAULT, VALMY FM AND WAYNE ZONE]
Newmont
<PAGE>
GOLD QUARRY - CHUKAR FOOTWALL UNDERGROUND
Chukar Footwall Target
- 26 core holes. Average grade ~ .045 oz/ton.
- Target lies 150 feed from Gold Quarry highwall
- Gold occurs in the same host rocks as most North Area mines - Roberts
Mountains formation
Newmont
<PAGE>
CHUKAR FOOTWALL TARGET
[PHOTGRAPH/DIAGRAM CROSS-SECTION OF MINING OPERATION WITH SHADED OVERLAY
INDICATING GOLD SHAPE]
Newmont
<PAGE>
HARDIE FOOTWALL EXTENSION
(CARLIN UNDERGROUND)
- Typical gold horizons average 0.35 to 0.50 oz/st. Recently drilled
"pods" containing 0.40 - 1.00 oz/st.
- Drill data shows the Hardie Fault lies about 100 ft
Northwest of modeled position, providing future expansion potential.
Newmont
<PAGE>
HARDIE FOOTWALL EXTENSION
[MAP DIAGRAM INDICATING PRE-MINING UNDERGROUND OUTLINE AND HIGH GRADE EXTENSIONS
TO ORE BODY RELATIVE TO HARDIE FAULT ZONE AND LEEVILLE FAULT ZONE]
Newmont
<PAGE>
HARDIE FOOTWALL EXTENSION: SECTION 4550 NE
[MAP DIAGRAM INDICATING ORE SHAPE 0.2 OZ/ST AU AND 1995 ORE SHAPE 1.2 OZ/ST AU]
Newmont
<PAGE>
GOLD MARGIN EXPLORATION DRILLING
- Exploration target is well-positioned between two of Carlin Trend's
highest grade mines - Deep Star and Deep Post
- Drilling is in-progress from underground platforms
- Drill intercepts indicate gold and pathfinder elements occur in
structural setting similar to Deep Star and Deep Post
Newmont
<PAGE>
DEEP STAR - DEEP POST CORRIDOR
[ARIAL PHOTOGRAPH INDICATING LOCATION OF POST PIT, DEEP POST, NGC/BGMI BORDER,
POST FAULT, DEEP STAR FAULT, EXPLORATION DRIFT, DRIFT ADVANCE (47% COMPLETE),
DEEP STAR OREBODY AND GEN FAULT]
Newmont
<PAGE>
DEEP POST DEVELOPMENT DRILLING
- First production level drilling shows outstanding intercepts, including 1
hole of 255 ft of 1.62 oz/st.
- Drill intercepts 10-20% higher grade than modeled.
- Slight increase in high grade tons outside the model.
- Top of deposit not fully defined.
Newmont
<PAGE>
DEEP POST
[AREA DIAGRAM INDICATING PLAN VIEW OF ELEVATION 4210]
Newmont
<PAGE>
DEEP POST DEVELOPMENT DRILLING
[AREA DIAGRAM INDICATING FINAL HIGHWALL POST 2ND SE PIT, CURRENTLY NOT IN
RESERVES, 150' @ 1.490 OZ/ST AU IN BLASTHOLES, 102.0'/1.418 OZ/ST AU, 4270 A
TOPCUT DRIFT, 40'/0.588 OZ/ST AU AND 133.5'/1.232 OZ/ST AU]
Newmont
<PAGE>
This presentation contains "forward-looking statements" within the meaning of
Section 21E of the Securities Exchange Act of 1934, as amended, and are intended
to be covered by the safe harbor created thereby. Such forward-looking
statements include, without limitation, (i) estimates of future earnings, (ii)
estimates of future gold production, (iii) estimates of future production costs
and (iv) estimates of future cash flow. Where the company expresses 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,
such forward-looking statements are subject to risks, uncertainties and other
factors which could cause actual results to differ materially from future
results expressed or implied by such forward-looking statements. Such risks
include, but are not limited to, gold price volatility, increased production
costs and variances in ore grade or recovery rates from those assumed in mining
plans. For a more detailed discussion of such risks and other factors, see Page
25 of the company's 1999 Annual Report on Form 10-K.
