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newmont mining 1_Exploration_Reserve_FINAL1

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newmont mining 1_Exploration_Reserve_FINAL1

  1. 1. Exploration & Reserves 1 Stephen Enders, Sr. VP, Worldwide Exploration
  2. 2. 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 “forward- looking 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. February 8, 2008 2
  3. 3. 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 February 8, 2008 3
  4. 4. Gold Deposit Realities Only 4% of All Gold Deposits are Over 5 Million Ounce Actual Distribution Of Gold Deposits Total Resource And Reserves (Oz) Actual Distribution Of Gold Deposits Total Resource And Reserves (Oz) Frequency Contained Gold (mm Oz) 2.2 February 8, 2008 4
  5. 5. Gold Deposit Realities 764 / 855 Deposits With Known Geographic Coordinates February 8, 2008 5
  6. 6. 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 February 8, 2008 6
  7. 7. The Limits to Discovery Number of Gold Discoveries Found Per Year Over 1 Million Ounces 25 $5 Exploration Expenditures ($ Billion) 20 $4 Number of Discoveries Industry Exploration Expenditures 15 $3 10 $2 5 $1 0 $0 * * 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 19 19 19 19 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 •Early Stages of Exploration Data Source: PACRIM 2004 & MEG February 8, 2008 7
  8. 8. 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 February 8, 2008 8
  9. 9. Newmont’s Track Record February 8, 2008 9
  10. 10. Newmont’s Track Record 100 93.8 93.2 92.4 91.3 86.5 80 60 Moz 64.8 55.5 40 46.9 41.4 34.1 20 0 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 = $804 Million *Peer Group includes: ABX, AU, GFI, PDG February 8, 2008 10
  11. 11. 2007 Results – Gold Reserve Reconciliation 100 3.5 95 7.2 0.7 Ounces (million) 0.9 90 93.9 3.4 Industry-Wide Cost Pressures 85 Impacting Reserves: 86.5 Gold Price Assumption Increased 15% 80 Average Industry Operating Costs Increased 24% 75 s 7 6 n ts e s n 00 00 ng io on en tio et l2 2 si a m i l Ch al dd ep i ua st ev u A D e ct ct n R iv gi A A D ar M *Source: GFMS February 8, 2008 11
  12. 12. 2007 Results – Gold NRM* Reconciliation 35 2.3 3.4 1.0 0.3 5.6 Ounces (million) 30 31.8 25 25.9 20 15 s 7 6 ts e s on n 00 00 ng on en tio si l2 2 si a m er i Ch al dd i ua st ev v u on A e ct ct n R iv gi A A C D ar M *Non-Reserve Mineralization February 8, 2008 12
  13. 13. 2008 Exploration Program Budget by Category G & A 5% Technical Support 6% Field Logistics 4% ESR/Land/Legal 4% Direct Drilling 57% Labor 23% Total 2008 Consolidated Budget ($ million) Inflation Impact Expensed $220 - $230 11% Drilling Inflation Capitalized $ 20 - $ 25 4% Labor Inflation Total $240 - $255 2% Foreign Exchange Impact February 8, 2008 13
  14. 14. 2004-2008 Budget Comparison Consolidated $ $240 - $255 400 Newmont Expl Budgets ($$ M) $198 Exploration Budgets ($$ B) Au Industry Consolidated 200 $188 $187 $180 300 200 100 100 0 0 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%* * Source: Minerals Economics Group; 2007 estimated February 8, 2008 14
  15. 15. 2008 Exploration Program February 8, 2008 15
  16. 16. Hope Bay Project Hope Bay P95 Resource = 5.5 Moz February 8, 2008 16
  17. 17. Hope Bay Project 80 kilometer gold-rich greenstone belt Three known deposits: Doris Madrid Boston +20 identified prospects in 5 regional camps Kamik February 8, 2008 17
  18. 18. Hope Bay Project – Discovery History 12 10 R MA RA I Au (million ounces) M 8 6 BHP 4 2 0 1999 2000 2001 2002 2003 2004 2005 2006 Miramar Reported Resources Miramar Reported Reserves February 8, 2008 18
  19. 19. Boddington Project ’ A A February 8, 2008 19
  20. 20. Boddington Project Newmont Normandy (44.44%) Newmont (44.44%) (66.7%) Project Approval Feasibility Feasibility Feasibility Project Pre-Feasibility Study Update Study Study Update 2 expansion Study 18 Purchase Hedges Gold Mine 16 14 12 Au (Moz) 10 8 6 4 2 0 94 95 96 97 98 99 01 02 03 04 06 07 FS U FS 19 19 19 19 19 19 20 20 20 20 20 20 00 05 20 20 Reserves February 8, 2008 20
  21. 21. Nassau Discovery Atlantic Ocean Guyana ∃ ∃∃ Paramaribo Paramaribo ∃ ∃∃ Paramaribo Maraba and 600000 mN 600000 mN mN 600000 mN 600000 mN 600000 mN 600000 mN 600000 mN 600000 mN Merian II Pits Nassau Project Nassau Project Pakira Guyana French 500000 mN 500000 mN mN 575000 mN 575000 mN 575000 mN 575000 mN 575000 mN 575000 mN Santa Barbara Margo SURINAME Mining Merian 400000 mN 400000 mN mN 550000 mN 550000 mN 550000 mN 550000 mN 550000 mN 550000 mN Witlage 300000 mN 300000 mN mN 80 Km 525000 mN 525000 mN 525000 mN 525000 mN 525000 mN 525000 mN Western Brasil 20 Km Witlage 500000 mE 600000 mE 700000 mE 800000 mE 500000 mE 600000 mE 700000 mE 800000 mE 200000 mN 200000 mN mN 725000 mE 750000 mE 750000 mE 775000 mE 775000 mE 800000 mE 800000 mE 725000 mE 750000 mE 750000 mE 775000 mE 775000 mE 800000 mE 800000 mE 725000 mE 750000 mE 750000 mE 775000 mE 775000 mE 800000 mE 800000 mE 725000 500000 mN 500000 mN 500000 mN 500000 February 8, 2008 21
  22. 22. Questions & Answers 22

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