Exploration & Reserves Stephen Enders, Sr. VP, Worldwide Exploration 1
Cautionary Statement Cautionary Note to U.S. Investors The United States Securities and Exchange Commission permits U.S. mining companies, in their filings with the SEC, to disclose only those mineral deposits that a company can economically and legally extract or produce. We use certain terms in this presentation such as measured, indicated, inferred, and resources, that the SEC guidelines strictly prohibit U.S. registered companies from including in their filings with the SEC. U.S. Investors are urged to consider closely the disclosure in our Form 8-K, File No. 001-31240, which may be secured from us, or from the SEC s website at: http//sec.gov/edgar.shtml. This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and copper production and sales; (ii) estimates of future costs applicable to sales and the components thereof; (iii) estimates of future capital expenditures and project costs; (iv) estimates regarding timing of future development, construction or production activities; (v) statements regarding future exploration results and reserves; and (vi) statements regarding potential cost savings, productivity, operating performance, cost structure and competitive position. Where the Company expresses or implies 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, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company s 2006 Annual Report on Form 10-K, filed February 26, 2007 which is on file with the Securities and Exchange Commission, as well as the Company s other SEC filings, including the prospectus supplement dated October 15, 2007. The Company does not undertake any obligation to release publicly revisions to any forwardlooking statement, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws. 2
Agenda Gold Deposit Realities The Limits to Discovery Newmont s Track Record 2007 Reserves and Non-Reserve Mineralization 2008 Exploration Program Hope Bay Project Boddington Project Nassau Discovery 3
Gold Deposit Realities Only 4% of All Gold Deposits are Over 5 Million Ounce Actual Distribution Of Gold Deposits Total Resource And Reserves (Oz) Frequency Contained Gold (mm Oz) 2.2 4
Gold Deposit Realities 764 / 855 Deposits With Known Geographic Coordinates 5
The Limits to Discovery Benchmarking Discovery* Industry Track Record (1985-2003) 190 deposits > 1 mm oz containing 895 mm oz Discovery rate is about ten 1 mm oz deposits per year Approximately 5 of 10 are >3 mm oz, and only 14 total >10 mm oz Cost of $28.6 B or ~$32/oz (greenfields and advanced projects) *Industry Data from Schodde, 2004 6
25 Number of Gold Discoveries Found Per Year Over 1 Million Ounces 20 15 10 5 0 $5 7 Number of Discoveries Exploration Expenditures ($ Billion) The Limits to Discovery Industry Exploration Expenditures * $4 $3 $2 $1 $0 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 Early Stages of Exploration Data Source: PACRIM 2004 & MEG *
Newmont s Track Record Newmont Track Record (1986-2004) 15 mm ozs discovered and initially reported from greenfields at costs of ~$50/oz Resulted in 49 mm oz at ~$16/oz including growth from near-mine 8
Newmont s Track Record 9
Newmont s Track Record 100 80 91.3 92.4 93.2 93.8 86.5 Moz 60 40 20 64.8 55.5 46.9 41.4 34.1 0 *Peer Group includes: ABX, AU, GFI, PDG 2003 2004 2005 2006 2007 Cumulative Reserves From Exploration Reserves Without Exploration Success Peer Group Average* Total Reserve Ounce Differential = 52.4 Million Ounces Five-Year Exploration Cost = $804 Million 10
2007 Results Gold Reserve Reconciliation 100 Ounces (million) 95 90 85 80 93.9 0.7 3.5 7.2 Industry-Wide Cost Pressures Impacting Reserves: Gold Price Assumption Increased 15% Average Industry Operating Costs Increased 24% 0.9 3.4 86.5 75 Actual 2006 Margin Change Additions Depletion Divestments Revisions Actual 2007 *Source: GFMS 11
2007 Results Gold NRM* Reconciliation 35 2.3 3.4 1.0 30 31.8 25 20 15 *Non-Reserve Mineralization 0.3 5.6 25.9 Actual 2007 12 Revisions Ounces (million) Actual 2006 Margin Change Additions Conversion Divestments
2008 Exploration Program G & A 5% Technical Support 6% Field Logistics 4% ESR/Land/Legal 4% Budget by Category Labor 23% Direct Drilling 57% Total 2008 Consolidated Budget ($ million) Expensed $220 - $230 Capitalized $ 20 - $ 25 Total $240 - $255 Inflation Impact 11% Drilling Inflation 4% Labor Inflation 2% Foreign Exchange Impact 13
2004-2008 Budget Comparison Consolidated $ $240 - $255 400 Newmont Expl Budgets ($$ M) 200 100 0 $187 $180 $188 $198 2004 2005 2006 2007 2008 Original FALC JV Nassau Hope Bay Au Industry Expl Budgets* Majors Newmont Newmont Budget Increase 11% Industry Budget Increase 187%* 300 200 100 0 Au Industry Consolidated Exploration Budgets ($$ B) * Source: Minerals Economics Group; 2007 estimated 14
2008 Exploration Program 15
Hope Bay Project P95 Resource = 5.5 Moz Hope Bay 16
Hope Bay Project 80 kilometer gold-rich greenstone belt Three known deposits: Doris Madrid Boston +20 identified prospects in 5 regional camps Kamik 17
Hope Bay Project Discovery History 12 Au (million ounces) 10 8 6 4 BHP MIRAMAR 2 0 1999 2000 2001 2002 2003 2004 2005 2006 Miramar Reported Resources Miramar Reported Reserves 18
Boddington Project A A 19
Boddington Project Normandy (44.44%) Newmont (44.44%) Newmont (66.7%) Pre-Feasibility Study Feasibility Study Feasibility Study Update Feasibility Study Update 2 Project Approval Project expansion 18 16 Purchase Hedges Gold Mine 14 12 Au (Moz) 10 8 6 4 2 0 1994 1995 1996 1997 1998 1999 2000FS Reserves 2001 2002 2003 2004 2005FSU 2006 2007 20
775000 me 800000 me Nassau Discovery 600000 mn 575000 mn 550000 mn 525000 mn 21 725000 me 750000 me Guyana 600000 mn Atlantic Ocean Paramaribo Nassau Project 500000 mn 400000 mn 300000 mn 80 Km 500000 mn 20 Km Maraba and Merian II Pits Santa Barbara Margo Mining Witlage Western Witlage Merian Pakira 500000 me 600000 me 700000 me 800000 me French Guyana S U R I N A M E 200000 mn Brasil
Questions & Answers 22