Newmont Capital manages the Company’s merchant banking activities, which include the management of royalty, equity and asset portfolios, as well as providing in-house investment banking and advisory services.

The royalty portfolio had a record year in 2004, generating $66 million of royalty and dividend income. This 17% improvement over 2003 resulted from steady performance from Newmont’s gold and platinum group metals royalties and was boosted by strong growth from oil and gas royalties as well as distributions from the Canadian Oil Sands Trust investment.

The equity portfolio also reached a milestone with marketable equity securities recording a year-end value in excess of $500 million, more than a threefold increase from the value at year-end 2003. This increase reflected not only new investments in the Canadian Oil Sands Trust ($200 million) and Gabriel Resources ($19 million), but also a strong appreciation ($123 million) in the value of the portfolio.

The asset portfolio holds Newmont’s interests in gold refining, heavy oil, iron ore, coal and gas. In 2004, at Newmont’s “Black Gold” heavy oil project in Alberta, Canada, a $4 million, 18-well drill program was completed. This program successfully defined a significant resource. To further delineate this resource, a second drill program is currently underway, which will be followed by a scoping study to be completed in the second half of 2005. Development of the “Black Gold” project would utilize Steam Assisted Gravity Drainage (SAGD). The “Black Gold” project is adjacent to Devon Energy’s Jackfish project and EnCana Resources’ Christina Lake project.

During 2004, Newmont increased its interest to 44% in the Euronimba iron ore project in Guinea where it is partnered with BHP Billiton. Euronimba is one of the best undeveloped iron ore deposits in the world. In 2005, the joint venture will initiate a rail transport study and conduct further exploration drilling. In Queensland, Australia, Newmont is reviewing its value realization options for its wholly-owned Millmerran thermal coal deposit.

In 2004, Newmont Capital also managed the sale of non-core properties, including Bronzewing in Australia, Perama in Greece, Midwest Uranium in Canada and the restructuring of the Company’s obligations with respect to the Queensland Magnesium Project.

OUTLOOK

Newmont Capital’s primary focus in 2005 will be maximizing the Company’s opportunity to participate in significant new exploration discoveries through further investments and additions to our equity portfolio. We currently hold over 30 companies in our actively managed equity portfolio and expect to grow our holdings in 2005.