OREANDA-NEWS.  Newmont Mining Corporation (NYSE: NEM) (Newmont or the Company) announced second quarter results, including \\$441 million in operating cash flow, and \\$692 million in adjusted earnings before interest, taxes, depreciation and amortization (Adjusted EBITDA) .

• Net income: Achieved adjusted net income2 of \\$131 million, or \\$0.26 per basic share, compared to \\$101 million or \\$0.20 per share in the prior year quarter; GAAP net income attributable to shareholders from continuing operations was \\$63 million, or \\$0.13 per share, compared to \\$182 million or \\$0.37 per share in the prior year quarter
• Consolidated Adjusted EBITDA: Delivered Adjusted EBITDA of \\$692 million in the second quarter, compared to \\$525 million in the prior year quarter
• Consolidated cash flow: Generated cash from continuing operations of \\$441 million and free cash flow3 from continuing operations of \\$119 million, compared to \\$378 million and \\$124 million in the prior year quarter
• All-in sustaining costs (AISC)4 : Improved gold AISC to \\$909 per ounce compared with \\$1,063 per ounce in the prior year quarter, and copper AISC to \\$1.61 per pound compared to \\$3.69 per pound in the prior year quarter
• Costs applicable to sales (CAS): Improved gold CAS to \\$638 per ounce compared with \\$744 per ounce in the prior year quarter, and copper CAS to \\$1.20 per pound compared to \\$2.53 per pound in the prior year quarter
• Attributable production: Delivered 1.24 million ounces and 41,000 tonnes of attributable gold and copper production, respectively, compared to 1.22 million ounces and 20,000 tonnes, respectively, in the prior year quarter
• Outlook: Improved 2015 outlook5 through strong operating performance and the addition of Cripple Creek & Victor (CC&V) gold mine; new guidance forecasts attributable gold production of between 4.7 and 5.1 million ounces, AISC of between \\$920 and \\$980 per ounce, and CAS of between \\$630 and \\$680 per ounce
• Portfolio: Acquisition of CC&V is expected to close early August; adding profitable production and cash flow to Newmont’s portfolio, with potential upside from cost and efficiency improvements and mine expansions
• Shareholder returns: Declared a second quarter dividend of \\$0.025 per share

"We continued to improve the underlying business in the second quarter, delivering \\$119 million in free cash flow and nearly \\$700 million in adjusted EBITDA while lowering all-in sustaining costs per ounce by 14 percent compared to the prior year. Favorable oil prices and exchange rates largely offset the impacts of lower metal prices. Based on this performance, we are improving our full-year outlook for both production and costs. We also strengthened our portfolio with the accretive acquisition of the Cripple Creek & Victor mine, while also continuing to divest certain non-core assets. Further, our strong operating performance allowed us to pay down an additional \\$75 million in debt and return cash to shareholders, - said Gary Goldberg, President and Chief Executive Officer.

Second Quarter Summary Results

Adjusted net income of \\$131 million, or \\$0.26 per basic share, was up 30% from the prior year quarter primarily due to higher copper production and better cost performance. GAAP net income attributable to shareholders from continuing operations was \\$63 million, or \\$0.13 per basic share, down from \\$182 million or \\$0.37 per share a year ago.

Consolidated cash flow from continuing operations was \\$441 million in the second quarter, compared to \\$378 million in the prior year quarter, more than offsetting the impact of lower metal prices and asset sales. Free cash flow was \\$119 million in the second quarter, slightly below the prior year quarter. During the quarter the Company paid \\$75 million towards its project debt facilities.

Revenue totaled \\$1.9 billion compared to \\$1.8 billion in the second quarter of 2014 primarily due to higher copper production and sales at Batu Hijau that helped offset lower metal prices and asset sales. During the second quarter of 2015, Batu Hijau mined higher grade ore and operated and shipped at full capacity. The prior year quarter was impacted by a temporary export ban.

Average net realized gold and copper price was \\$1,179 per ounce and \\$2.41 per pound, respectively, compared with \\$1,283 per ounce and \\$3.01 per pound, respectively, in the prior year quarter.

Attributable gold production totaled 1.24 million ounces, compared to 1.22 million ounces in the second quarter of 2014. Higher production at Batu Hijau and Tanami more than offset the impact of divesting Jundee and La Herradura. Including the pending sale of Waihi, Newmont will have generated approximately \\$1.6 billion in fair value asset sales since 2013 while maintaining attributable gold production. Attributable copper production totaled 41,000 tonnes compared to 20,000 tonnes in the year ago period due to higher grade ore at Batu Hijau. Gold and copper AISC was \\$909 per ounce and \\$1.61 per pound, respectively, compared with \\$1,063 per ounce and \\$3.69 per pound, respectively, in the prior year quarter.

Gold and copper CAS were \\$638 per ounce and \\$1.20 per pound, respectively, compared with \\$744 per ounce and \\$2.53 per pound, respectively, in the second quarter of 2014. Unit costs benefitted from ongoing cost and efficiency improvements, lower fuel prices and favorable Australian dollar exchange rates, and improved production volumes, particularly at Batu Hijau and Yanacocha.

Capital expenditures for the second quarter were \\$322 million, including \\$170 million of sustaining capital. Development capital was higher than the prior year primarily due to the construction of Merian in Suriname and Long Canyon Phase 1 in Nevada. Sustaining capital was lower mostly due to timing and a reduction of the full year forecast spend of about 5%.

2015 – 2017 OUTLOOK

Newmont has updated its gold production and cost outlook to include the impact of Long Canyon Phase 1, the pending acquisition of CC&V, and pending sale of Waihi. Attributable gold production is expected to increase from between 4.7 and 5.1 million ounces in 2015 to between 5.2 and 5.5 million ounces by 2017. In 2015, expected attributable gold production is up 3% from prior guidance primarily due to the inclusion of CC&V as well as improved productivity and mill utilization at Tanami and higher production at Batu Hijau. Attributable copper production outlook for 2015 is also up roughly 10% from prior guidance due to improved grade and face position at Batu Hijau.

The revised 2015 outlook includes a reduction in Asia Pacific and Africa region costs of approximately 6% each compared to previous guidance. Boddington and Tanami CAS and AISC outlook for 2015 are lower than previous estimates primarily due to lower oil prices and Australian dollar exchange rates, as well as efficiency improvements. Africa cost outlook for 2015 is improved due to lower direct spend related to power load shedding and processing of higher grade stockpiles. Consolidated AISC per ounce is expected to be between \\$920 and \\$980 in 2015, holding relatively steady at between \\$900 and \\$1,000 in 2017. Copper all-in sustaining costs per pound at Boddington are reduced in 2015 due to lower oil prices and Australian dollar exchange rates, as well as efficiency improvements. The long term outlook for copper production and costs remain unchanged for 2017.

The updated 2015 outlook includes reduced capital spending at Carlin and Twin Creeks in Nevada, as well as Boddington and Batu Hijau in Asia Pacific mostly due to optimized mine plans, cost savings and some delayed spend, offset by additional capital spend at the newly acquired CC&V gold mine in Colorado.

Debt – Year-to-date, Newmont has paid \\$200 million toward its existing term loan and \\$80 million toward project debt in Ghana and Indonesia. Newmont remains on track to pay down further debt in 2015.

Projects Update

The Turf Vent Shaft is expected to achieve commercial production in late 2015, adding approximately 100,000 to 150,000 ounces of annual production to Carlin’s Leeville underground mine. The shaft provides ventilation required to increase production and decrease mine costs over the 11 year mine life at Leeville. Capital costs for the project are estimated at between \\$300 and \\$350 million, a reduction of \\$50 million from prior guidance. Approximately \\$60 to \\$70 million will be spent in 2015.

The Cripple Creek & Victor acquisition is expected to close in early August. CC&V lowers Newmont’s cost profile with expected CAS of between \\$725 and \\$775 per ounce and AISC of between \\$825 and \\$875 per ounce in 2016 and 2017. Gold production is expected to average between 350,000 and 400,000 ounces in 2016 and 2017. Total capital costs for Newmont are approximately \\$200 million, with between \\$50 and \\$60 million to be spent in 2015.

Merian is progressing on schedule and on budget. Merian will give Newmont a foothold in a prospective new district with significant upside potential. Gold production is expected to average between 400,000 and 500,000 ounces on a 100 percent basis during the first five years at a cost applicable to sales of \\$575 to \\$675 per ounce, and all-in sustaining cost of between \\$650 and \\$750 per ounce. Capital costs for the project are estimated at between \\$600 and \\$700 million for Newmont’s 75 percent share. Newmont’s capital expenditure is expected to be between \\$330 million and \\$360 million in 2015 and between \\$150 million and \\$190 million in 2016. The project is scheduled for start-up in late 2016.

Long Canyon Phase 1 is expected to achieve commercial production in the first half of 2017. This first phase of development consists of an open pit mine and heap leach operation with production of between 100,000 and 150,000 ounces per year over an eight year mine life. Estimated average costs applicable to sales are expected to be between \\$400 and \\$500 per ounce and all-in sustaining costs of between \\$500 and \\$600 per ounce over the life of the mine, in the first quartile for gold production. Total capital costs for the project are estimated at between \\$250 and \\$300 million allocated roughly evenly in 2015 and 2016 with minimal spending in 2017.

The Tanami Expansion and Ahafo Mill Expansion represent additional upside not currently included in the 2015 – 2017 outlook.

Tanami Expansion includes constructing a second decline in the mine and building incremental capacity in the plant to increase profitable production and serve as a platform for exploration drilling to support future expansion. For a capital cost of between \\$100 and \\$120 million, the project would add incremental gold production of 100,000 to 125,000 ounces (first five year average) at lower costs and increase mine life by three years. If approved later this year, additional production would come on line in 2017.

Ahafo Mill Expansion would increase profitable production by 100,000 to 125,000 ounces (first five year average) while lowering costs and off-setting the impacts of lower grades and harder ore. Capital costs are expected to be between \\$140 and \\$160 million. If approved in the second half of 2015, the additional production would be expected in late 2017.