Prepared by R.R. Donnelley Financial -- Form 8K
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
 
FORM 8-K
 
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
 
October 1, 2002
Date of report (Date of Earliest Event Reported)
 
Newmont Mining Corporation
(Exact Name of Registrant as Specified in its Charter)
 
Delaware
  
001-31240
  
84-1611629
(State or Other Jurisdiction
of Incorporation)
  
(Commission
File Number)
  
(I.R.S. Employer
Identification No.
 
 
1700 Lincoln Street
Denver, Colorado 80203
(Address of Principal Executive Offices)
 
 
303-863-7414
(Registrant’s Telephone Number, Including Area code)
 
 

 
ITEM 5.    OTHER EVENTS.
 
 
In February 2002, Newmont Mining Corporation (“Newmont”) acquired Normandy Mining Limited (“Normandy”) and Franco-Nevada Mining Corporation Limited (“Franco-Nevada”). The following tables present pro forma proven and probable reserve information as of December 31, 2001 assuming that Newmont had acquired both Normandy and Franco-Nevada, and that Franco-Nevada had acquired its 45.3% interest in Echo Bay Mines Limited, in each case as of December 31, 2001. With respect to the pro forma reserve information for property owned by Normandy, the reserves reported by Normandy as of June 30, 2001 have been adjusted to reflect (a) depletion during the period between July 1, 2001 and December 31, 2001; (b) additional technical data collected by Normandy during that period; and (c) a gold price of US$300 per ounce, except for the equity amounts reported for Kalgoorlie and Boddington, where Normandy’s gold price assumptions of A$475 per ounce and A$425 per ounce, respectively, were retained. Except as provided in footnote 8 to the tables, no changes were made to Newmont’s proven and probable reserve information reported in Newmont’s Form 10-K for the year ended December 31, 2001 which was based on information available at the time Newmont’s reserves were calculated.
 
With the acquisitions of Normandy and Franco-Nevada, Newmont had worldwide pro forma gold reserves of 87.3 million equity ounces of gold as of December 31, 2001. Normandy had reported reserves of 26.4 million equity ounces as of June 30, 2001 (the date of its last reserve report).
 
References to “equity ounces” or “equity pounds” mean that portion of gold, copper or zinc in proven and probable reserves that is attributable or proportionate to Newmont’s ownership or economic interest.
 
The term “reserve” means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination.
 
The term “economically,” as used in the definition of reserve, implies that profitable extraction or production has been established or analytically demonstrated, in a full or bankable feasibility study, to be viable and justifiable under reasonable investment and market assumptions.
 
The term “legally,” as used in the definition of reserve, does not imply that all permits needed for mining and processing have been obtained or that other legal issues have been completely resolved. However, for a reserve to exist, Newmont must have a justifiable expectation, based on applicable laws and regulations, that issuance of permits or resolution of legal issues necessary for mining and processing at a particular deposit will be accomplished in the ordinary course and in a timeframe consistent with Newmont’s current mine plans.
 
The term “proven reserves” means reserves for which (a) quantity is computed from dimensions revealed in outcrops, trenches, workings or drill holes; (b) grade and/or quality are computed from the result of detailed sampling; and (c) the sites for inspection, sampling and measurements are spaced so closely and the geologic character is

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sufficiently defined that size, shape, depth and mineral content of reserves are well established.
 
The term “probable reserves” means reserves for which quantity and grade are computed from information similar to that used for proven reserves but the sites for sampling are farther apart or are otherwise less adequately spaced. The degree of assurance, although lower than that for proven reserves, is high enough to assume continuity between points of observation.
 
Proven and probable reserves are based on extensive drilling, sampling, mine modeling and metallurgical testing from which economic feasibility has been determined. The price sensitivity of reserves depends upon several factors including grade, waste-to-ore ratios and ore type. Included in Newmont’s reserves are 680,794 ounces of gold committed under a prepaid forward sales contract. Recovery rates vary depending on the metallurgical properties of each deposit and the production process used. The reserve tables list the average recovery rate for each deposit which takes into account the several different processing methods scheduled to be used. The cutoff grade, or lowest grade of mineralized material considered economic to process, varies with material type, metallurgical recoveries, and operating costs.
 
The proven and probable reserves figures presented herein are estimates, and no assurance can be given that the indicated levels of recovery of gold, copper or zinc will be realized. Ounces of gold or pounds of copper and zinc in the proven and probable reserves are prior to any losses during metallurgical treatment. Reserve estimates may require revision based on actual production experience. Market price fluctuations of gold, copper and zinc as well as increased production costs or reduced recovery rates could render proven and probable reserves containing relatively lower grades of mineralization uneconomic to exploit and might result in a reduction of reserves.

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Newmont Mining Corporation, December 31, 2001—U.S. Units
Pro Forma Gold Reserves
 
           
Equity Proven and Probable Gold Reserves (1)
         
    
Equity Ownership
(%)
     
Tonnage (000 tons)
   
Grade (oz/ton)
   
Ounces (000)
     
Metallurgical
Recovery (%)
  
North America
                               
Nevada
                               
Carlin Open Pits
   
100.0
%
   
107,402
   
0.052
   
5,601
     
66
%
Twin Creeks
   
100.0
%
   
57,443
   
0.089
   
5,088
     
86
%
Lone Tree Complex
   
100.0
%
   
29,247
   
0.065
   
1,893
     
75
%
Carlin Underground
   
100.0
%
   
11,153
   
0.56
   
6,240
     
93
%
Midas
   
100.0
%
   
3,371
   
0.67
   
2,250
     
97
%
Nevada Stockpiles and In-Process
   
100.0
%
   
75,378
   
0.055
   
4,143
     
76
%
Phoenix (2)
   
100.0
%
   
174,177
   
0.034
   
5,991
     
82
%
    
  
  
  
    
Total Nevada
          
458,171
   
0.068
   
31,206
         
           
  
  
        
Other North America
                               
Mesquite, California (3)
   
100.0
%
   
8,424
   
0.014
   
118
     
61
%
Golden Giant, Ontario
   
100.0
%
   
3,560
   
0.29
   
1,042
     
96
%
Holloway, Ontario (4)
   
89.35
%
   
3,373
   
0.19
   
641
     
94
%
La Herradura, Sonora, Mexico
   
44.0
%
   
20,823
   
0.030
   
626
     
71
%
Total Other North America
          
36,180
   
0.067
   
2,427
         
    
  
  
  
    
TOTAL NORTH AMERICA
          
494,351
   
0.068
   
33,633
         
           
  
  
        
South America
                               
Minera Yanacocha Oxide, Peru
   
51.35
%
   
625,489
   
0.028
   
17,548
     
73
%
Kori Kollo, Bolivia
   
88.0
%
   
19,136
   
0.032
   
614
     
63
%
    
  
  
  
    
TOTAL SOUTH AMERICA
          
644,625
   
0.028
   
18,162
         
           
  
  
        
Australia/Oceania
                               
Boddington, Western Australia (5)
   
44.44
%
   
190,855
   
0.025
   
4,853
     
89
%
Golden Grove, Western Australia (6)
   
100.0
%
   
1,411
   
0.044
   
62
     
60
%
Kalgoorlie, Western Australia (7)
   
50.0
%
   
93,641
   
0.061
   
5,724
     
90
%
Pajingo, Queensland (8)
   
100.0
%
   
2,409
   
0.38
   
919
     
97
%
Tanami, Northern Territory (9)
   
86.49
%
   
18,570
   
0.14
   
2,654
     
96
%
Yandal, Western Australia
   
100.0
%
   
20,189
   
0.11
   
2,207
     
93
%
Martha, New Zealand (9)
   
82.22
%
   
5,817
   
0.097
   
563
     
94
%
    
  
  
  
    
TOTAL AUSTRALIA/OCEANIA
          
332,892
   
0.051
   
16,982
         
           
  
  
        
Asia and Europe
                               
Batu Hijau, Indonesia (10)
   
56.25
%
   
562,566
   
0.011
   
6,143
     
81
%
Minahasa, Indonesia (11)
   
94.0
%
   
1,496
   
0.15
   
222
     
90
%
Zarafshan-Newmont, Uzbekistan
   
50.0
%
   
77,467
   
0.042
   
3,261
     
55
%
Ovacik, Turkey
   
100.0
%
   
1,220
   
0.35
   
433
     
91
%
Perama, Greece
   
80.0
%
   
9,698
   
0.11
   
1,048
     
90
%
    
  
  
  
    
TOTAL ASIA and EUROPE
          
652,447
   
0.017
   
11,107
         
           
  
  
        
Africa
                               
Yamfo-Sefwi, Ghana (12)
   
85.6
%
   
44,852
   
0.074
   
3,330
     
91
%
    
  
  
  
    
TOTAL AFRICA
          
44,852
   
0.074
   
3,330
         
           
  
  
        
TOTAL NEWMONT WORLDWIDE (13)
          
2,169,167
   
0.038
   
83,214
         
           
  
  
        
EQUITY INTERESTS
                               
TVX Normandy-Americas (14)
   
49.9
%
   
115,176
   
0.020
   
2,344
     
nr 
(15)
Echo Bay Mining (16)
   
45.3
%
   
72,894
   
0.024
   
1,732
     
nr 
(15)
    
  
  
  
    
TOTAL EQUITY INTERESTS
          
188,070
   
0.022
   
4,076
         
           
  
  
        
TOTAL NEWMONT REPORTABLE
          
2,357,237
   
0.037
   
87,290
         
           
  
  
        
(1)
 
Except where otherwise noted, such reserves are based on $300/oz gold price.
(2)
 
Reserve based on $350/oz gold price.
(3)
 
Mining completed in 2001, reserves are from material under leach.
(4)
 
Percentage reflects Newmont's weighted equity interest from 84.65% interest in Holloway JV and 100% interest in remaining reserves. In 2000 this percentage was 88.3%
(5)
 
Reserve based on A$425/oz gold price.
(6)
 
Contained gold in reserves not reported in June 2001 by Normandy. Gold reported in reserves is that contained within Zn ore bodies only.
(7)
 
Reserve based on A$475/oz gold price.
(8)
 
Revised reserve from previous Newmont public disclosures, formerly reported as 2,304,000 tons at 0.39 opt, containing 907,000 ounces (453,000 equity ounces).
(9)
 
Percentage reflects Normandy's equity interest as of December 31, 2001, while Otter transaction was in progress.
(10)
 
Percentage reflects Newmont's economic interest in remaining reserves, unchanged from 2000.
(11)
 
Percentage reflects Newmont's economic interest in remaining reserves. In 2000 this percentage was 95.9%
(12)
 
Percentage reflects Normandy's weighted equity interest of 50% in Ntotoroso and 100% in remaining reserves.
(13)
 
Included in the total reserves are 680,794 ounces of gold committed under a pre-paid forward sales contract.
(14)
 
TVX Normandy-Americas includes varying interests in: Musselwhite Mine, Ontario; New Britannia Mine, Manitoba; Paracatu Mine, Brazil; Crixas Mine, Brazil; La Coipa Mine, Chile; and Gurupi Project, Brazil. Newmont has agreed to sell its 49.9% interest in TVX Newmont-Americas pursuant to a transaction expected to closed later in 2002.
(15)
 
Not Reported on an aggregate basis.
(16)
 
Reflects 45.3% of Echo Bay reserves as of December 31, 2001. Newmont acquired its interest in Echo Bay in the second quarter of 2002. Echo Bay Mines holds varying interests in: Round Mountain Mine, Nevada; McCoy-Cove Mine, Nevada; Lupin Mine, Northwest Territories; Kettle River Project, Washington; Aquarius Project, Ontario; and Ulu Project, Burkina Faso. Newmont has agreed to exchange its shares in Echo Bay for shares in Kinross Gold pursuant to a transaction expected to close later in 2002.

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Base Metal Reserves at December 31, 2001—U.S. Units
Pro Forma Copper Reserves
 
Copper
   
Equity Ownership
(%)
     
Equity Proven and Probable Copper Reserves (1)
         
       
Tonnage (000 tons)
   
Grade (Cu%)
     
Copper (million pounds)
     
Metallur-gical
Recovery (%)
  
Phoenix, Nevada
   
100.0
%
   
156,323
   
0.16
%
   
515
     
85
%
Batu Hijau, Indonesia (2)
   
56.25
%
   
562,567
   
0.49
%
   
5,484
     
92
%
Boddington, Western Australia
   
44.44
%
   
190,855
   
0.12
%
   
458
     
76
%
Golden Grove, Western Australia
   
100.0
%
   
3,978
   
4.1
%
   
326
     
88
%
    
  
  
  
    
TOTAL NEWMONT COPPER
          
913,723
   
0.37
%
   
6,783
         
           
  
  
        
 
Pro Forma Zinc Reserves
 
Zinc
   
Equity Ownership (%)
     
Equity Proven and Probable Zinc Reserves(1)
         
       
Tonnage (000 tons)
   
Grade (Zn%)
     
Zinc (million pounds)
     
Metallur-gical
Recovery (%)
  
Golden Grove, Western Australia
   
100.0
%
   
1,411
   
13.3
%
   
375
     
91
%
    
  
  
  
    
TOTAL NEWMONT ZINC
          
1,411
   
13.3
%
   
375
         
           
  
  
        
(1)
 
Includes reserves held by Normandy Mining Limited as at December 31, 2001.
(2)
 
Percentage reflects Newmont’s economic interest in remaining reserves.
 
This document 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 reserves and future reserve growth potential, and (ii) estimates of future operations. 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, 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, as well as political and operational risks and governmental regulation. For a more detailed discussion of such risks and other factors, see Page 8 of the company’s 2001 Annual Report on Form 10-K which is on file with the Securities and Exchange Commission, as well as the company’s other SEC filings.

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SIGNATURE
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Dated: October 1, 2002
   
NEWMONT MINING CORPORATION
    
By:
   
/s/    Britt D. Banks
    
Name:
   
Britt D. Banks
    
Title:
   
Vice President, General Counsel
         
and Secretary

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