Leadership requires an unwavering commitment from all of us at Newmont to do what it takes to make our Company great. It is a never-ending process that requires each of us to question the status quo and search for solutions that become best practices in our industry.

RESULTS

Leadership comes with a constant need to deliver results and create value. 2004 was another record year with revenues reaching $4.5 billion, an increase of 43% over 2003. Net cash provided by operating activities also set a new record at $1.6 billion. Net income was an industry-leading $443.3 million or $1.00 per share. Margin based on total production costs increased to $117 per ounce, up 17% for the year and 86% from two years ago. Annual dividends paid to common shareholders increased from $0.17 per share to $0.30 per share. Our balance sheet continues to strengthen with $2.1 billion in cash and marketable securities at year-end 2004, compared with $1.6 billion at year-end 2003.

Our business creates wealth through the exploration, development and mining of mineral resources worldwide, specifically gold and copper-gold deposits. We added 12.4 million ounces to reserves in 2004. Over the past two years, we grew reserves by 3% per year. These results are good, but not good enough. Our goal is to grow reserves and we are working hard to achieve that objective by investing in the best people and technology in the industry.

Wayne W. Murdy, Chairman and CEO, visiting the Ahafo training facility in Ghana, receiving a gift from Trainee Love Dufie. Looking on are Trainee George Badu-Yeboah, on the left, and Deputy Brong Ahafo Regional Minister Hon. Adeji Duffour.

As the world’s largest gold producer, Newmont accounted for approximately 9% of global mine supply with gold sales of approximately 7 million equity ounces in 2004. Yanacocha in Peru continued to deliver strong performance with record gold sales of 1.6 million equity ounces during the year. The Batu Hijau copper-gold mine in Indonesia sold a record 379 million equity pounds of copper, a 10% increase over 2003. The copper price strengthened in 2004 and the Company realized an average $1.33 per pound, which helped Batu Hijau contribute substantially to Newmont’s revenues, earnings and cash provided by operating activities.