Newmont accounted for approximately 9% of global mine supply with gold sales of approximately 7.0 million equity ounces in 2004, at total cash costs of $231 per ounce. This section provides highlights from Newmont’s current four core operating regions and the new core region being developed in Ghana. Please refer to Management’s Discussion and Analysis in the Company’s 2004 Form 10-K for further information.

REVIEW

The Nevada operations recorded gold sales of 2.4 million equity ounces. Total cash costs were 18% higher at $278 per ounce, primarily as a result of lower ore grades and recoveries, and higher energy, labor and equipment maintenance costs.

Yanacocha in Peru increased gold sales by 6% to a record 3.0 million ounces (1.6 million equity ounces) for 2004. Total cash costs increased 13% to $135 per ounce due to increased fuel consumption, higher commodity prices and higher royalties.

In the Australia/New Zealand region, sales totaled 1.9 million equity ounces, at total cash costs of $272 per ounce. The 5% lower gold sales were largely attributable to the disposal of non-core assets at Yandal and lower ore grade at Pajingo. Total cash costs were 16% higher, primarily due to stronger Australian and New Zealand dollars, as well as increased diesel prices and lower production.

The Batu Hijau copper-gold mine in Indonesia is one of the lowest-cost and largest copper producers in the world. Consolidated copper sales increased 12% to 683 million pounds (379 million equity pounds), at total cash costs of $0.60 per pound. The average realized copper price of $1.33 per pound increased 55% from 2003. Batu Hijau sold 715,200 ounces of gold (396,300 equity ounces) at total cash costs of $128 per ounce.

OUTLOOK

In 2005, initiatives are underway at all operations to improve efficiencies and control rising costs. The Nevada operations have experienced increased total cash costs per ounce over the past four years as a result of maturing open pit mines, a growing proportion of higher-cost refractory ores mined, higher commodity prices and, more recently, the lowering of cut-off grades as the gold price has risen. To increase gold production for improved total cash costs per ounce, the Nevada operations will add new haul trucks and other mining equipment to enhance surface mining rates and improve unit operating costs. In addition, the start-up of the Leeville and Phoenix projects in 2005 and 2006, respectively, provides a new base of higher margin production, while the proposed development of a new power plant in Nevada should provide a consistent source of lower cost electricity.