DENVER, July 26, 2012 /PRNewswire/ -- Newmont Mining Corporation (NYSE: NEM) ("Newmont" or the "Company") today reported attributable net income from continuing operations of $279 million, or $0.56 per share, down 47% from $523 million, or $1.06 per share in the second quarter of 2011. Adjusted net income⁽¹⁾ was $294 million, or $0.59 per share, compared with $445 million, or $0.90 per share, for the prior year quarter.

Quarter Highlights:

• Sales revenue of $2.2 billion, a decrease of 6% from the prior year quarter;
• Average realized gold and copper price of $1,598 per ounce and $2.85 per pound, up 6% and down 25%, respectively, from the prior year quarter;
• Attributable gold and copper production of 1.18 million ounces and 38 million pounds, down 3% and 10%, respectively, from the prior year quarter; attributable gold and copper sales of 1.14 million ounces and 29 million pounds, down 6% and 35%, respectively, from the prior year quarter;
• Gold and copper costs applicable to sales ("CAS") of $681 per ounce and $2.35 per pound, up 17% and 75%, respectively, from the prior year quarter;
• Cash flow from continuing operations of $351 million, down 15% from the prior year quarter;
• Third quarter gold price-linked dividend payable of $0.35 per share, up 17% from the prior year quarter; and
• 2012 attributable gold production outlook narrowed to 5.0 to 5.1 million ounces, maintaining CAS outlook of $625 to $675 per ounce, and reducing outlook for attributable capital expenditures to $2.7 billion to $3.0 billion.

"Globally, our portfolio continues to perform in line with our budget. As expected, our second quarter gold production was impacted by annual planned mill maintenance in Nevada and lower gold and copper production from Batu Hijau in Indonesia, as we continue with the planned stripping of Phase 6," said Richard O'Brien, Chief Executive Officer. "Our capital expenditures are expected to be approximately $300 million lower than originally planned for the year, largely as a result of our slower development timetable at Conga in Peru. We also expect our advanced projects, exploration and G&A expenditures to collectively be approximately $100 million lower this year. As we continue to optimize and refine our plans, we expect to deliver further efficiencies and cost savings for 2013 and beyond," added Mr. O'Brien.

(1) Non-GAAP measure. See page 10 for reconciliation.

Newmont is narrowing its previously announced 2012 outlook for attributable gold production to 5.0 to 5.1 million ounces (from 5.0 to 5.2 million ounces), and narrowing its outlook on attributable copper production to 145 to 165 million pounds (from 150 to 170 million pounds). The lower attributable gold production outlook is due to lower tons mined at Tanami. The Company is maintaining its original outlook for gold and copper CAS of between $625 and $675 per ounce (on a co-product basis) and $1.80 and $2.20 per pound, respectively.

Newmont is also revising its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion (from $3.0 to $3.3 billion), or $3.3 to $3.6 billion (from $3.7 to $4.0 billion) on a consolidated basis. This revision is primarily due to the deferral of development of the Conga project in Peru. As previously disclosed, the Company will take a slower development approach on the Conga project with a focus on the construction of reservoirs for downstream communities. Construction of Conga and the implementation of the independent EIA review recommendations will continue provided it can be done in a safe manner with risk-adjusted returns that justify future investment.

As previously announced, Newmont's Board of Directors approved a third quarter gold price-linked dividend payable of $0.35 per share(2) based upon the average London P.M. Gold Fix for the second quarter.

Operations

North America

Nevada – Attributable gold production in Nevada was 378,000 ounces at CAS of $718 per ounce during the second quarter. Gold production increased 6% from the prior year quarter due to higher throughput at Mill 6, partially offset by lower grade at Midas and Phoenix. CAS per ounce increased 13% due to higher underground mining costs, higher royalties and lower by-product credits. The Company is narrowing its outlook for 2012 attributable gold production from Nevada to 1.730 to 1.775 million ounces, and continues to expect CAS of between $575 and $625 per ounce.

La Herradura – Attributable gold production at La Herradura in Mexico was 59,000 ounces at CAS of $569 per ounce during the second quarter. Gold production increased 11% from the prior year quarter due to higher leach placement as Noche Buena commenced production during the first quarter of 2012. CAS increased 11% from the prior year quarter due to higher waste tons mined, higher diesel and higher employee profit sharing costs. The Company is narrowing its outlook for 2012 attributable gold production from La Herradura to 220,000 to 230,000 ounces at CAS of between $460 and $510 per ounce.

South America

Yanacocha – Attributable gold production at Yanacocha in Peru was 200,000 ounces at CAS of $466 per ounce during the second quarter. Gold production increased 14% from the prior year quarter due to higher mill grade and recovery, partially offset by lower leach placement. CAS per ounce decreased 14% from the prior year quarter due to higher production and lower mining costs, partially offset by higher workers' participation costs and lower by-product credits. The Company is narrowing its outlook for 2012 attributable gold production from Yanacocha to 675,000 to 700,000 ounces at CAS of between $475 and $525 per ounce.

La Zanja – Attributable gold production during the second quarter at La Zanja in Peru was approximately 13,000 ounces. The Company is narrowing its outlook for 2012 attributable gold production from La Zanja to 50,000 to 60,000 ounces.

(2) Payable on September 28, 2012 to shareholders of record as of September 6, 2012.

Asia Pacific

Boddington – Attributable gold and copper production during the second quarter at Boddington in Australia was 180,000 ounces and 18 million pounds, respectively, at CAS of $947 per ounce and $2.79 per pound, respectively. Gold ounces produced were 10% lower than the prior year due to lower mill grade and recovery, partially offset by higher mill throughput. Gold CAS increased 48% due to lower gold production and higher milling costs. Copper pounds produced increased 20% from the prior year quarter due to higher mill throughput and grade, partially offset by lower recovery. CAS per pound increased 44% from the prior year quarter due to higher milling costs, partially offset by higher copper production. The Company is narrowing its outlook for 2012 attributable gold production to 750,000 to 775,000 ounces at CAS of between $800 and $850 per ounce and is maintaining outlook for attributable copper production of 70 to 80 million pounds at CAS of between $2.00 and $2.25 per pound.

Batu Hijau – Attributable gold and copper production during the second quarter at Batu Hijau in Indonesia was 8,000 ounces and 20 million pounds, respectively, at CAS of $943 per ounce and $2.20 per pound, respectively. Gold and copper production decreased 68% and 25%, respectively, from the prior year quarter due to processing lower grade stockpile ore. Waste tons mined increased 14% as Phase 6 waste removal continues as planned. CAS per ounce and per pound increased 92% and 79%, respectively, due to lower production and higher waste mining costs, partially offset by an increase in concentrate inventory. The Company is narrowing its outlook for 2012 attributable gold production to 30,000 to 40,000 ounces at CAS of between $925 and $975 per ounce and attributable copper production of 75 to 85 million pounds at CAS of between $1.80 and $2.20 per pound.

Other Australia/New Zealand – Attributable gold production during the second quarter was 207,000 ounces at CAS of $880 per ounce. Attributable gold ounces produced decreased 15% from the prior year quarter due to lower underground mining rates at Tanami and a delay in open pit ore production at Waihi, partially offset by higher throughput and grade at Jundee. CAS per ounce increased 38% from the prior year quarter due to lower production, higher operating costs driven by higher power prices and a stronger Australian dollar, net of hedging gains. The Company is narrowing its outlook for 2012 attributable gold production to 950,000 to 990,000 ounces at CAS of between $810 and $860 per ounce.

Africa

Ahafo – Attributable gold production during the first quarter at Ahafo in Ghana was 132,000 ounces at CAS of $583 per ounce. Gold production decreased 10% from the prior year quarter due to lower mill throughput and grade, partially offset by higher recovery. CAS per ounce increased 31% from the prior year quarter due to lower production and higher labor, diesel and mine maintenance costs. The Company is narrowing its outlook for 2012 attributable gold production to 555,000 to 570,000 ounces at CAS of between $550 and $600 per ounce.

Capital Update

Consolidated capital expenditures were $882 million during the second quarter. Newmont is revising its 2012 attributable capital expenditure outlook to $2.7 to $3.0 billion (from $3.0 to $3.3 billion), or $3.3 to $3.6 billion (from $3.7 to $4.0 billion) on a consolidated basis. This revision is primarily due to the deferral of development on the Conga project in Peru. For the remainder of the year, 50% of 2012 consolidated capital expenditures are expected to be associated with major projects, while the remaining 50% is expected to be sustaining capital.

2012 Outlook- Q2 Update