<PAGE> 1
FORM 11-K
(x) ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 1996
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)
For the transition period from _____ to _____
Commission file number 1-9184
NEWMONT GOLD COMPANY HOURLY RETIREMENT SAVINGS PLAN
---------------------------------------------------
(Title of Plans)
NEWMONT GOLD COMPANY
--------------------
(Issuer of Securities)
1700 Lincoln Street, Denver, Colorado 80203
-------------------------------------------
(Principal Executive Office)
<PAGE> 2
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act
of 1934, the trustees (or other persons who administer the employee benefit
plan) have duly caused this annual report to be signed on its behalf by the
undersigned hereunto duly authorized.
NEWMONT GOLD COMPANY HOURLY RETIREMENT SAVINGS PLAN
By: /s/ Dawn M. Putaturo
---------------------------------
Dawn M. Putaturo
Administration Committee
Member
Dated: June 25, 1997 By: /s/ Timothy J. Schmitt
---------------------------------
Timothy J. Schmitt
Vice President, Secretary and
Assistant General Counsel
<PAGE> 3
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
AS OF DECEMBER 31, 1996 AND 1995
TOGETHER WITH REPORT OF INDEPENDENT
PUBLIC ACCOUNTANTS
<PAGE> 4
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
INDEX TO FINANCIAL STATEMENTS AND
SUPPLEMENTAL SCHEDULES
<TABLE>
<CAPTION>
Page(s)
-------
<S> <C>
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS 1
- ----------------------------------------
FINANCIAL STATEMENTS:
- --------------------
Statement of Net Assets Available for Plan Benefits,
with Fund Information, as of December 31, 1996 2
Statement of Net Assets Available for Plan Benefits,
with Fund Information, as of December 31, 1995 3
Statement of Changes in Net Assets Available for
Plan Benefits, with Fund Information, for the Year
Ended December 31, 1996 4-5
NOTES TO FINANCIAL STATEMENTS 6-10
- -----------------------------
SCHEDULES SUPPORTING FINANCIAL STATEMENTS:
- -----------------------------------------
Schedule I--Item 27a--Schedule of Assets Held for
Investment Purposes as of December 31, 1996 11
Schedule II--Item 27d--Schedule of Reportable Transactions
January 1, 1996 through December 31, 1996 12
</TABLE>
<PAGE> 5
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
To the Participants and Administration Committee of the
Newmont Gold Company Hourly Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits, with fund information, of the NEWMONT GOLD COMPANY HOURLY RETIREMENT
SAVINGS PLAN as of December 31, 1996 and 1995, and the related statement of
changes in net assets available for plan benefits, with fund information, for
the year ended December 31, 1996. These financial statements and the schedules
referred to below are the responsibility of the Plan's management. Our
responsibility is to express an opinion on these financial statements and
schedules based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan as of
December 31, 1996 and 1995, and the changes in its net assets available for
plan benefits, for the year ended December 31, 1996, in conformity with
generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules of assets
held for investment purposes and reportable transactions are presented for the
purpose of additional analysis and are not a required part of the basic
financial statements but are supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The fund information in
the statements of net assets available for plan benefits and the statement of
changes in net assets available for plan benefits is presented for purposes of
additional analysis rather than to present the net assets available for plan
benefits and changes in net assets available for plan benefits of each fund.
The supplemental schedules and fund information have been subjected to the
auditing procedures applied in the audits of the basic financial statements
and, in our opinion, are fairly stated, in all material respects, in relation
to the basic financial statements taken as a whole.
Denver, Colorado,
May 14, 1997.
- 1 -
<PAGE> 6
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
Non-
Participant
Directed Participant Directed
----------- ---------------------------------------------------------------
Neuberger
PIMCO &
Low Berman MasterWorks AIM
Duration Guardian S&P 500 Constellation
Cash Fund Trust Stock Fund Fund
--------- ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $ 36,443 $ - $ - $ - $ -
Collective investment funds - - - - -
Mutual funds - 1,348,470 2,758,313 1,938,487 3,099,046
Employer stock fund - - - - -
Participant loans - - - - -
--------- ------------ ------------ ------------ ------------
Total investments 36,443 1,348,470 2,758,313 1,938,487 3,099,046
CONTRIBUTIONS RECEIVABLE:
Employer's contributions - 1,716 7,224 6,970 10,743
Participants' contributions - 3,782 17,793 17,198 27,356
--------- ------------ ------------ ------------ ------------
Total contributions receivable - 5,498 25,017 24,168 38,099
--------- ------------ ------------ ------------ ------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 36,443 $ 1,353,968 $ 2,783,330 $ 1,962,655 $ 3,137,145
========= ============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------
Newmont
Gold U.S.
Company Government
Templeton Common Money LifePath LifePath
Foreign Stock Market 2000 2010
Fund Fund Fund Fund Fund
---------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $ - $ - $ - $ - $ -
Collective investment funds - - 2,182,161 344,153 1,058,119
Mutual funds 756,926 - - - -
Employer stock fund - 914,032 - - -
Participant loans - - - - -
---------- ---------- ------------ ---------- ------------
Total investments 756,926 914,032 2,182,161 344,153 1,058,119
CONTRIBUTIONS RECEIVABLE:
Employer's contributions 2,502 3,755 12,895 1,113 3,434
Participants' contributions 6,229 8,598 24,626 3,326 7,437
---------- ---------- ------------ ---------- ------------
Total contributions receivable 8,731 12,353 37,521 4,439 10,871
---------- ---------- ------------ ---------- ------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 765,657 $ 926,385 $ 2,219,682 $ 348,592 $ 1,068,990
========== ========== ============ ========== ============
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
---------------------------------------------------------------------------
LifePath LifePath LifePath
2020 2030 2040 Participant
Fund Fund Fund Loans Total
------------ ---------- ---------- ------------ --------------
<S> <C> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $ - $ - $ - $ - $ 36,443
Collective investment funds 1,132,419 647,553 657,230 - 6,021,635
Mutual funds - - - - 9,901,242
Employer stock fund - - - - 914,032
Participant loans - - - 2,002,105 2,002,105
------------ ---------- ---------- ------------ --------------
Total investments 1,132,419 647,553 657,230 2,002,105 18,875,457
CONTRIBUTIONS RECEIVABLE:
Employer's contributions 4,073 2,483 2,878 - 59,786
Participants' contributions 8,788 5,631 6,049 - 136,813
------------ ---------- ---------- ------------ --------------
Total contributions receivable 12,861 8,114 8,927 - 196,599
------------ ---------- ---------- ------------ --------------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 1,145,280 $ 655,667 $ 666,157 $ 2,002,105 $ 19,072,056
============ ========== ========== ============ ==============
</TABLE>
The accompanying notes to financial statements and supplemental
schedules are an integral part of this statement.
- 2 -
<PAGE> 7
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND INFORMATION
AS OF DECEMBER 31, 1995
<TABLE>
<CAPTION>
Non-
Participant
Directed Participant Directed
----------- -----------------------------------------------------------
Neuberger
PIMCO &
Low Berman MasterWorks AIM
Duration Guardian S&P 500 Constellation
Cash Fund Trust Stock Fund Fund
------ ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $4,470 $ - $ - $ - $ -
Collective investment funds - - - - -
Mutual funds - 1,605,283 2,474,151 1,179,719 1,948,452
Employer stock fund - - - - -
Participant loans - - - - -
------ ---------- ---------- ---------- ----------
Total investments 4,470 1,605,283 2,474,151 1,179,719 1,948,452
CONTRIBUTIONS RECEIVABLE:
Participant rollovers - - - 2,213 6,224
------ ---------- ---------- ---------- ----------
Total contributions receivable - - - 2,213 6,224
------ ---------- ---------- ---------- ----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $4,470 $1,605,283 $2,474,151 $1,181,932 $1,954,676
====== ========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------------------------------------
Newmont
Gold U.S.
Company Government
Templeton Common Money LifePath LifePath LifePath
Foreign Stock Market 2000 2010 2020
Fund Fund Fund Fund Fund Fund
---------- -------- ---------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $ - $- $ - $- $- $-
Collective investment funds - - 1,171,435 228,031 691,654 687,842
Mutual funds 398,919 - - - - -
Employer stock fund - 493,944 - - - -
Participant loans - - - - - -
---------- -------- ---------- -------- -------- --------
Total investments 398,919 493,944 1,171,435 228,031 691,654 687,842
CONTRIBUTIONS RECEIVABLE:
Participant rollovers - - 89,927 - 1,211 -
---------- -------- ---------- -------- -------- --------
Total contributions receivable - - 89,927 - 1,211 -
---------- -------- ---------- -------- -------- --------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $ 398,919 $493,944 $1,261,362 $228,031 $692,865 $687,842
========== ======== ========== ======== ======== ========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
----------------------------------------------------------------
LifePath LifePath
2030 2040 Participant
Fund Fund Loans Total
-------- -------- -------- -----------
<S> <C> <C> <C> <C>
INVESTMENTS, at fair value:
Cash and cash equivalents $- $- $- $ 4,470
Collective investment funds 434,362 338,192 - 3,551,516
Mutual funds - - - 7,606,524
Employer stock fund - - - 493,944
Participant loans - - 643,221 643,221
-------- -------- -------- -----------
Total investments 434,362 338,192 643,221 12,299,675
CONTRIBUTIONS RECEIVABLE:
Participant rollovers - 20,285 - 119,860
-------- -------- -------- -----------
Total contributions receivable - 20,285 - 119,860
-------- -------- -------- -----------
NET ASSETS AVAILABLE FOR
PLAN BENEFITS $434,362 $358,477 $643,221 $12,419,535
======== ======== ======== ===========
</TABLE>
The accompanying notes to financial statements and supplemental
schedules are an integral part of this statement.
- 3 -
<PAGE> 8
Page 1 of 2
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
FOR THE YEAR ENDING DECEMBER 31, 1996
<TABLE>
<CAPTION>
Non-Participant
Directed Participant Directed
--------------- ---------------------------------------------
PIMCO Neuberger & MasterWorks
Low Duration Berman S&P 500
Cash Fund Guardian Trust Stock Fund
----------- ------------ ------------ -----------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Contributions (Note 1)-
Employee $ - $ 101,330 $ 512,156 $ 430,304
Employer - 46,531 205,411 174,361
Rollovers and repayments, net - - 31,632 8,906
Investment income-
Interest and dividends 1,173 - 64,944 60,862
Net appreciation/(depreciation) in fair
value of investments - 75,438 344,321 258,403
----------- ----------- ----------- -----------
Total additions 1,173 223,299 1,158,464 932,836
DEDUCTIONS FROM NET ASSETS:
Distributions to participants (530) (96,995) (145,753) (69,621)
Administrative fees and other, net (242) (622) (1,146) (933)
----------- ----------- ----------- -----------
Total deductions (772) (97,617) (146,899) (70,554)
INTERFUND TRANSFERS, net 34,832 (376,948) (703,299) (82,464)
OTHER, net (3,260) (49) 913 905
----------- ----------- ----------- -----------
Net increase/(decrease) 31,973 (251,315) 309,179 780,723
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year 4,470 1,605,283 2,474,151 1,181,932
----------- ----------- ----------- -----------
NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year $ 36,443 $ 1,353,968 $ 2,783,330 $ 1,962,655
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
------------------------------------------------
Newmont Gold
AIM Templeton Company
Constellation Foreign Common Stock
Fund Fund Fund
----------- -------- --------
<S> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Contributions (Note 1)-
Employee $ 688,186 $161,171 $244,862
Employer 267,755 63,836 101,458
Rollovers and repayments, net 41,162 20,644 21,541
Investment income-
Interest and dividends 103,930 31,056 -
Net appreciation/(depreciation) in fair
value of investments 261,378 69,313 (74,434)
----------- -------- --------
Total additions 1,362,411 346,020 293,427
DEDUCTIONS FROM NET ASSETS:
Distributions to participants (52,855) (8,640) (47,079)
Administrative fees and other, net (1,399) (244) (522)
----------- -------- --------
Total deductions (54,254) (8,884) (47,601)
INTERFUND TRANSFERS, net (122,723) 31,750 184,509
OTHER, net (2,965) (2,148) 2,106
----------- -------- --------
Net increase/(decrease) 1,182,469 366,738 432,441
NET ASSETS AVAILABLE FOR PLAN BENEFITS, beginning of year 1,954,676 398,919 493,944
----------- -------- --------
NET ASSETS AVAILABLE FOR PLAN BENEFITS, end of year $ 3,137,145 $765,657 $926,385
=========== ======== ========
</TABLE>
The accompanying notes to financial statements and supplemental
schedules are an integral part of this statement.
- 4 -
<PAGE> 9
Page 2 of 2
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR PLAN BENEFITS, WITH FUND
INFORMATION
FOR THE YEAR ENDED DECEMBER 31, 1996
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
U.S.
Government LifePath LifePath LifePath
Money Market 2000 2010 2020
Fund Fund Fund Fund
------------ ---------- ------------ ------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Contributions (Note 1)-
Employee $ 709,949 $ 86,458 $ 202,180 $ 245,144
Employer 378,069 29,092 92,722 111,825
Rollovers and repayments, net 31,094 328 27,662 44,573
Investment income-
Interest and dividends 78,297 - - -
Net appreciation/(depreciation) in fair
value of investments - 17,525 86,127 118,612
------------ ---------- ------------ ------------
Total additions 1,197,409 133,403 408,691 520,154
DEDUCTIONS FROM NET ASSETS:
Distributions to participants (131,247) (33,948) (8,792) (28,022)
Administrative fees and other, net (1,606) (85) (365) (494)
------------ ---------- ------------ ------------
Total deductions (132,853) (34,033) (9,157) (28,516)
INTERFUND TRANSFERS, net (178,058) 21,561 (22,318) (37,304)
OTHER, net 71,822 (370) (1,091) 3,104
------------ ---------- ------------ ------------
Net increase/(decrease) 958,320 120,561 376,125 457,438
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 1,261,362 228,031 692,865 687,842
------------ ---------- ------------ ------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $ 2,219,682 $ 348,592 $ 1,068,990 $ 1,145,280
============ ========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
Participant Directed
-----------------------------------------------------------------------
LifePath LifePath
2030 2040 Participant
Fund Fund Loans Total
---------- ---------- ------------ --------------
<S> <C> <C> <C> <C>
ADDITIONS TO NET ASSETS:
Contributions (Note 1)-
Employee $ 153,558 $ 151,595 $ - $ 3,686,893
Employer 66,217 72,009 - 1,609,286
Rollovers and repayments, net - 8,294 - 235,836
Investment income-
Interest and dividends - - 145,472 485,734
Net appreciation/(depreciation) in fair
value of investments 75,862 85,199 - 1,317,744
---------- ---------- ------------ --------------
Total additions 295,637 317,097 145,472 7,335,493
DEDUCTIONS FROM NET ASSETS:
Distributions to participants (23,973) (9,903) (70,047) (727,405)
Administrative fees and other, net (376) (392) - (8,426)
---------- ---------- ------------ --------------
Total deductions (24,349) (10,295) (70,047) (735,831)
INTERFUND TRANSFERS, net (49,228) 16,231 1,283,459 -
OTHER, net (755) (15,353) - 52,859
---------- ---------- ------------ --------------
Net increase/(decrease) 221,305 307,680 1,358,884 6,652,521
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
beginning of year 434,362 358,477 643,221 12,419,535
---------- ---------- ------------ --------------
NET ASSETS AVAILABLE FOR PLAN BENEFITS,
end of year $ 655,667 $ 666,157 $ 2,002,105 $ 19,072,056
========== ========== ============ ==============
</TABLE>
The accompanying notes to financial statements and supplemental
schedules are an integral part of this statement.
- 5 -
<PAGE> 10
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1996 AND 1995
(1) DESCRIPTION OF PLAN
The following description of the Plan provides only general information.
Participants should refer to the Plan document for a more complete description
of the Plan's provisions.
General
The Plan was established on October 1, 1991 by Newmont Gold Company (the
"Company"). The Plan is a collectively bargained, defined contribution plan
subject to the provisions of the Employee Retirement Income Security Act of
1974 ("ERISA"). Benefits under the Plan are not subject to guarantee by the
Pension Benefit Guaranty Corporation.
Trust
Trustee, record keeping, and investment management services were performed by
401(k) MasterWorks Division of Wells Fargo Institutional Trust Company, N.A.
and various investment managers. Plan assets were held under a Trust Agreement
(the "Trust") maintained by Wells Fargo Bank, N.A. (the "Trustee").
Barclays Bank PLC and certain of its affiliates acquired substantially all of
Wells Fargo Institutional Trust Company, N.A. ("WFITC") as of December 31,
1995. As a result, the name WFITC was changed to BZW Barclays Global
Investors, N.A. ("BGI"), effective January 1, 1996. Additionally, as a result
of its acquisition of WFITC, BGI acquired the 401(k) MasterWorks Division of
Wells Fargo and succeeded the business of the MasterWorks Division, effective
January 1, 1996. Effective October 15, 1996, BZW Barclays Global Investors,
N.A. was renamed Barclays Global Investors, N.A.
An Investment Committee consisting of not less than three nor more than five
members is appointed by the Company's Board of Directors. The Investment
Committee evaluates the performance of the Trustee, may retain independent
advisors and consultants, and selects the investment options offered under the
Plan.
- 6 -
<PAGE> 11
Eligibility and Contributions
Hourly employees are eligible to participate in the Plan on the first day of
the first month following 46 days of work. Participants may elect to
contribute to the Plan up to 15% of their regular annual compensation, to a
maximum of $9,500 and $9,240 on a pre-tax basis for the 1996 and 1995 plan
years, respectively. Participant's contributions are matched by the Company,
not to exceed 4% of their regular compensation. Total annual additions under
the Plan and all other plans sponsored by the Company are limited to the lesser
of 25% of eligible compensation or $30,000. Annual additions are defined as
the participant's contributions and Company's matching contributions.
Vesting
Participants' contributions are fully vested. Participants vest 20% in Company
contributions for each year of service to a maximum of 100% after four years of
service. Additionally, participants may become fully vested in the matching
Company contributions under certain other circumstances, including Plan
termination.
At December 31, 1996 and 1995, forfeited nonvested accounts totaled $36,443 and
$4,470, respectively. These accounts are used to reduce future Company
contributions. During 1996, Company contributions were reduced by $3,427 from
forfeited nonvested accounts.
The Plan provides that the Trustee may accept from a participant a contribution
representing distributions from another plan which meets the requirements of
Section 401(a) of the Internal Revenue Code (the "Code"). Such "rollover
contributions" shall be fully vested and shall not be subject to, or affect in
any way, the maximum annual contribution limitation.
Participant Accounts
Each participant's account is credited with the participant's contribution, the
Company's matching contribution and an allocation of Plan earnings, based on
participant account balances, on a daily basis.
Payment of Benefits
Upon retirement, death, disability, or termination of service, a participant
may elect to receive a lump sum distribution equal to his or her vested account
balance.
Investments
Participants may invest their contributions and their portion of the Company's
matching contribution in the following investment funds:
# PIMCO Low Duration Fund - Holds cash and shares of the PIMCO Low
Duration Mutual Fund which invests in a diversified portfolio of
fixed-income securities with an average duration between one and
three years.
- 7 -
<PAGE> 12
# Neuberger & Berman Guardian Trust - A growth and income fund which
invests in stocks of established high- quality companies considered
to be undervalued in comparison to stocks of similar companies.
# BGI-MasterWorks (formerly Stagecoach) S&P 500 Stock Fund - Invests in
the companies included in the Standard & Poor's 500 Index.
# AIM Constellation Fund - Aggressively seeks capital appreciation by
investing principally in common stocks, with emphasis on medium-sized
and smaller emerging-growth companies.
# Templeton Foreign Fund - Seeks long-term capital growth through a
flexible policy of investing in stocks and debt obligations of
companies and governments outside the United States.
# Newmont Gold Company Common Stock Fund - Invests solely in the common
stock of Newmont Gold Company.
# BGI-U.S. Government Money Market Fund - Invests primarily in
securities of the U.S. Government or its agencies with maturities of
less than one year.
# BGI-LifePath Collective Trust (five fund elections) - The LifePath
Funds invest in a changing mix of U.S. and international stocks,
bonds, and money market securities according to the targeted
retirement year of the investor.
The cost basis of the Plan's investments was $17,683,647 and $12,265,671 at
December 31, 1996 and 1995, respectively. The fair market value of individual
investments that represent 5% or more of the Plan's total investments as of
December 31, 1996 and 1995 are as follows:
<TABLE>
<CAPTION>
1996 1995
---------- ----------
<S> <C> <C>
PIMCO Low Duration Fund $1,348,470 $1,605,283
Neuberger & Berman Guardian Trust 2,758,313 2,474,151
BGI - MasterWorks S&P 500 Stock Fund 1,938,487 1,179,719
AIM Constellation Fund 3,099,046 1,948,452
BGI - U.S. Government
Money Market Fund 2,182,161 1,171,435
BGI - LifePath 2010 Fund 1,058,119 691,654
BGI - LifePath 2020 Fund 1,132,419 687,842
Participant Loans 2,002,105 643,221
</TABLE>
- 8 -
<PAGE> 13
At December 31, 1996, the Plan held no derivative instruments directly.
However, the Plan held such instruments indirectly through their investments in
the collective investment funds and mutual funds, which under their trust
agreements, may invest in such instruments. These instruments consist mainly
of futures contracts and options. Credit risk exists with respect to these
instruments. The credit related gains and losses during the year ended
December 31, 1996 were immaterial.
Loans
Loans are permitted from individual plan accounts on 50% of the participant's
vested balance. The minimum loan amount is $1,000 and the maximum is the
lesser of 50% of the vested balance or $50,000. The repayment period may be up
to five years, or up to ten years if the loan is for the purchase of a
principal residence. The interest rate is determined by the plan administrator
based on prime plus 1% and is fixed over the life of the note.
(2) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements are prepared on the accrual basis of
accounting. The preparation of the financial statements in conformity with
generally accepted accounting principles requires the Plan's management to use
estimates and assumptions that affect the accompanying financial statements and
disclosures. Actual results could differ from these estimates.
Valuation of Investments
The Plan's investment funds are stated at fair value based on quoted market
prices, which was readily determinable at December 31, 1996 and 1995. Cash
equivalents and participant loans are stated at cost which approximates fair
value.
Net Appreciation (Depreciation) in Fair Value of Investments
Net realized and unrealized appreciation (depreciation) is recorded in the
accompanying statement of changes in net assets available for plan benefits as
net appreciation (depreciation) in fair value of investments.
Payment of Benefits
Benefits are recorded when paid.
Administrative Fees
The Company pays all administrative expenses of the Plan, except for loan
processing fees.
- 9 -
<PAGE> 14
(3) PLAN TERMINATION
Although it is the expectation of the Company to continue the Plan
indefinitely, in the event of termination of the Plan, with respect to a group
or class of participants, or partial discontinuance of contributions, the
balance credited to the Company's matching contributions accounts of all
participants subject to such partial termination or partial discontinuance of
contributions, will become fully vested and nonforfeitable.
(4) TAX STATUS
The Trust established under the Plan is qualified under the Internal Revenue
Code as exempt from Federal income taxes and a favorable determination letter
has been received from the IRS dated December 4, 1996. The Plan administrator
and the Plan's legal counsel believe that the Plan is being operated in
compliance with the applicable requirements of the Internal Revenue Code.
Therefore, they believe that the Plan is qualified and the related trust is tax
exempt as of the financial statement date.
(5) RELATED PARTY TRANSACTIONS
Certain plan investments are units of collective investment funds and mutual
funds managed by BGI, an affiliate of the Trustee. Also, certain plan
investments are shares of Newmont Gold Company, the sponsor of the Plan.
(6) SUBSEQUENT EVENT
During the first quarter of 1997, the following amendments were adopted by the
Plan:
# On January 1, 1997, the definition of compensation for participant
contributions changed. Under the new definition, participants'
compensation is calculated on all earnings, except bonus payments.
# On January 1, 1997, the definition of eligible pay for the Company
matching contribution changed. Under the new definition, the
Company matching contribution is calculated by applying an
employee's average straight-time pay rate for the pay period,
including shift differential and temporary upgrade, to actual
hours worked during the pay period, up to 80 hours.
# Beginning October 1, 1997, the Company matching contribution will
increase from 4% to 5%.
- 10 -
<PAGE> 15
SCHEDULE I
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
Item 27a--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
AS OF DECEMBER 31, 1996
<TABLE>
<CAPTION>
Name of Issuer Market Cost
or Party Involved Description of Assets Value Basis
- --------------------------------- --------------------- -------------- ------------
<S> <C> <C> <C>
Cash Cash and Cash
Equivalents Fund $ 36,443 $ 36,443
PIMCO Low Duration Fund Mutual Fund 1,348,470 1,241,009
Neuberger & Berman Guardian Trust Mutual Fund 2,758,313 2,468,464
*BGI - MasterWorks S&P 500
Stock Fund Mutual Fund 1,938,487 1,707,045
AIM Constellation Fund Mutual Fund 3,099,046 2,864,084
Templeton Foreign Fund Mutual Fund 756,926 692,879
*Newmont Gold Company Common
Stock Fund Employer Stock Fund 914,032 1,014,891
*BGI - U.S. Government
Money Market Fund Collective Investment Fund 2,182,161 2,182,161
*BGI - LifePath 2000 Fund Collective Investment Fund 344,153 327,654
*BGI - LifePath 2010 Fund Collective Investment Fund 1,058,119 973,012
*BGI - LifePath 2020 Fund Collective Investment Fund 1,132,419 1,018,796
*BGI - LifePath 2030 Fund Collective Investment Fund 647,553 575,588
*BGI - LifePath 2040 Fund Collective Investment Fund 657,230 579,516
Participant Loans (a) (Interest rates ranging
from 7.0% to 10.0%) 2,002,105 2,002,105
-------------- ------------
Totals $ 18,875,457 $ 17,683,647
============== ============
</TABLE>
* Represents a party-in-interest.
(a) Participant Loans under the Plan bear interest at prime plus one percent.
The accompanying notes to financial statements are an integral part of this
schedule.
- 11 -
<PAGE> 16
SCHEDULE II
NEWMONT GOLD COMPANY HOURLY
RETIREMENT SAVINGS PLAN
Item 27d--SCHEDULE OF REPORTABLE TRANSACTIONS (a)
JANUARY 1, 1996 THROUGH DECEMBER 31, 1996
(a) Individual or series of transactions which, when aggregated, involve an
amount in excess of 5% of plan assets as of the beginning of the plan year.
Purchases and sales are made at current value on the date of the
transaction.
<TABLE>
<CAPTION>
Number of
Transactions
------------------- Purchase Selling Cost of
Identity of Party Involved/Description Purchases Sales Price Price Asset Net Gain
- -------------------------------------- --------- ----- -------- ------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
PIMCO Low Duration - Mutual Fund 37 - $ 154,534 $ - $ 154,534 $ -
PIMCO Low Duration - Mutual Fund - 121 - 486,786 467,075 19,711
Neuberger & Berman Guardian Trust - Mutual Fund 63 - 805,095 - 805,095 -
Neuberger & Berman Guardian Trust - Mutual Fund - 151 - 865,254 848,010 17,244
*BGI - MasterWorks-S&P 500 Stock - Mutual Fund 91 - 871,875 - 871,875 -
*BGI - MasterWorks-S&P 500 Stock - Mutual Fund - 103 - 371,510 348,057 23,453
AIM Constellation - Mutual Fund 99 - 1,429,471 - 1,429,471 -
AIM Constellation - Mutual Fund - 121 - 540,255 502,580 37,675
*Newmont Gold Company - Common Stock Fund 99 - 796,286 - 796,286 -
*Newmont Gold Company - Common Stock Fund - 97 - 301,764 274,843 26,921
*BGI - U.S. Government Money Market -
Collective Investment Fund 67 - 1,583,269 - 1,583,269 -
*BGI - U.S. Government Money Market -
Collective Investment Fund - 132 - 622,625 622,625 -
*BGI - LifePath 2020 - Collective Investment Fund 69 - 506,298 - 506,298 -
*BGI - LifePath 2020 - Collective Investment Fund - 57 - 180,333 172,603 7,730
</TABLE>
* Represents a party-in-interest.
The accompanying notes to financial statements are an integral part of this
schedule.
- 12 -
<PAGE> 17
EXHIBIT INDEX
<TABLE>
<CAPTION>
Exhibit No. Exhibit
- ----------- -------
<S> <C>
23 Consent of Arthur Andersen LLP
</TABLE>
<PAGE> 1
EXHIBIT 23
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the use of our report
dated May 14, 1997 on the Newmont Gold Company Hourly Retirement Savings Plan,
included in this Form 11-K for the year ended December 31, 1996.
/s/ Arthur Andersen LLP
Denver, Colorado,
June 25, 1997.
