COSTS APPLICABLE TO SALES TO TOTAL CASH COST PER EQUITY POUND

Batu Hijau⁽¹⁾

(dollars in millions except per pound amounts)	Year Ended December 31,
	2004
Costs applicable to sales per financial statements	$ 304.7
Minority interest	(140.7)
Reclamation/accretion expense	(1.7 )
Smelting and refining	66.0
Total cash cost for per pound calculation	228.3
Equity copper sold (000 lbs)	378,801
Total cash cost per equity pound	$ 0.60

⁽¹⁾ 2003 total cash costs were $0.46 per pound on a pro forma co-product basis.

CAUTIONARY STATEMENT

This report contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such sections. Such forward-looking statements include, without limitation, (i) estimates of future gold and other metals production and sales; (ii) estimates of future cash costs and total production costs; (iii) estimates regarding timing of future construction, production or closure activities; (iv) statements regarding the company’s hedge position; (v) estimates of future capital expenditures; (vi) statements regarding future exploration results and the replacement of reserves; and (vii) statements regarding the US current account deficit, the strength of the US dollar and the price of gold; and (viii) statements regarding future asset sales or rationalization efforts. 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, forward-looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forwardlooking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, political and operational risks in the countries in which we operate, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s 2004 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. The Company does not undertake any obligation to release publicly revisions to any “forward-looking statement,” to reflect events or circumstances after the date of this Summary Annual Report, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.