p. 1

© charging bull by arturo di modica 2005 annual report nyse:nem

[close]

p. 2

the image of the bull on the cover symbolizes the ongoing bull market in gold in 2005 gold prices rose 20 closing at $517 per ounce gold is rising in all major currencies a true gold is rising in all major currencies sign of a gold bull market 110 90 70 50 growth usd gold 30 10 -10 -30 yen gold euro gold 2002 source bloomberg 2003 2004 2004 2005

[close]

p. 3

table of contents letter to shareholders 2 why gold 6 why newmont 12 2005 at a glance 14 operations 20 exploration/land position 22 2005 sales and reserves at a glance 24 merchant banking 26 sustainable development 30 financial information 31 report of independent registered public accounting firm 32 condensed financial statements 35 board of directors corporate officers 36 regional directors general managers 37 shareholder information the financial information in this summary annual report is condensed this summary annual report should be read in conjunction with the company s annual report on form 10-k for the year ended december 31 2005 which provides more detailed financial information regarding the company including the company s complete consolidated financial statements and accompanying notes as well as management s discussion and analysis of financial condition and results of operations investors may request without charge the company s annual report on form 10-k by contacting investor relations as provided under shareholder information in this summary annual report this summary annual report also contains forward-looking statements that are subject to various risks and uncertainties as explained in more detail on page 36 of this summary annual report 2 0 0 5 a n n ua lrepo rt 1

[close]

p. 4

gold is rising in all major currencies a true sign of a gold bull market to our shareholders why gold we believe the fundamental gold bull market factors are stronger than ever in our 2002 annual report we wrote from the 20-year bear market low of $253 an ounce in july 1999 gold has rallied to the current $330 per ounce range having witnessed many false starts to a new bull market in gold the skeptics doubt the price will go any higher the market is climbing the proverbial `wall of worry we on the other hand do not worry our view is that all the factors that have pushed the gold price to current levels are still in place and we still see higher gold prices in the coming months and years four years later with gold prices well over two times the bear market lows of 1999 we believe the fundamental gold bull market factors are stronger than ever declining supply and robust demand are providing powerful support for gold prices throughout 2005 we saw jewelry demand increase over 4 driven by strong demand in the middle east turkey china and india.1 1 based on gfms 2005 year-end estimates newmontminingcorpor at i o n 2

[close]

p. 5

even more impressive inflows into the seven gold exchangetraded funds have stimulated over 15 million ounces over $8 billion of demand since inception reflecting the market s confidence in the sustainability of this gold bull market development of exchange traded gold increase in ounces under management 2 0 0 5 a n n ua lrepo rt 3

[close]

p. 6

gold is money and it shines in uncertain political and economic times on the supply side a dearth of new discoveries in the last seven years combined with an ever-lengthening permitting process and rising capital costs has reduced mine output by 5 since 2001.1 gold expenditures vs mine production another factor driving gold prices higher is gold s ongoing role in the world s financial systems gold is money and it shines in uncertain political and economic times the u.s current account deficit has grown to an unsustainable level of 1 based on gfms 2005 year-end estimates newmontminingcorpor at i o n 4

[close]

p. 7

over 6 of gross domestic product oil prices have skyrocketed and the middle east remains unstable in 2005 the u.s dollar was remarkably strong yet gold had another solid year rising 20 to close at $517 per ounce when the growing financial imbalances of the u.s are one day reconciled with the fact that no country can borrow its way to prosperity we believe gold will shine brighter than ever gold had another solid year gold vs u.s current account 2 0 0 5 a n n ua lrepo rt 5

[close]

p. 8

newmont retains the superior liquidity so valued by today s investor why newmont the case for gold is easy and we believe the case for newmont is just as strong in 2005 newmont benefited from a 9 increase in the average spot gold price realizing over $440 per ounce for the year our stock gained 20 in 2005 significantly outpacing the s&p 500 and the dow jones industrial average newmont the only gold stock listed in the newmont vs s&p 500 s&p 500 newmontminingcorpor at i o n 6

[close]

p. 9

for 2005 we again generated industry leading cash flow from continuing operations of $1.3 billion despite lower earnings resulting primarily from ongoing industry-wide cost pressures and the impact of several non-cash charges income from continuing operations for 2005 was $374 million 0.84 per share compared with income from continuing operations of $453 million 1.02 per share in 2004 the 2005 equity gold sales were 6.5 million ounces compared with 7.0 million ounces in 2004.1 as we look to 2006 and beyond we are excited about the opportunities our newest initiatives will provide for improving our cost structure and competitive profile in the industry we remain confident in the exploration prospects contained within our 32-million-acre land position in many of the world s premier gold districts in 2006 we expect to increase our investment in exploration spending approximately $158 million with our team of geologists and geoscientists continuing to develop and employ state-ofthe-art geophysics and geochemistry technology in 2005 we replaced depletion and generated reserve growth for the fourth straight year 1 2005 equity gold sales include sales from holloway and golden grove which are accounted for as discontinued operations 2 0 0 5 a n n ua lrepo rt 7

[close]

p. 10

our project pipeline offers promising opportunities over the next four years we will be investing approximately $1.8 billion in capital development programs designed to offset the natural decline of several mature operations around the globe in 2006 we will be adding production from the leeville and phoenix mines in nevada and from the ahafo mine in ghana in 2008 we expect to begin production from the akyem mine in ghana and the boddington mine in australia these capital-effective mines will have average project lives of over 16 years and once completed will add over 2.5 million equity ounces of annual production at average costs applicable to sales below the current industry average project pipeline newmontminingcorpor at i o n 8

[close]

p. 11

newmont focused not only on growth but also on cost control but just as our land position and our project pipeline offers promising opportunities higher commodity and consumable input costs as well as increasingly stringent permitting and regulatory pressures are creating significant challenges for the mining industry energy prices accounted for over 18 of operating costs in 2005 while gold prices increased 20 in 2005 oil prices were up over 40 placing increasing cost pressures on the gold mining industry to help address these cost pressures we have commenced construction of a 200-megawatt power plant in nevada that is expected to significantly reduce our operating costs when completed in 2008 during 2005 newmont also increased its investment in the areas of sustainable development environmental stewardship employee health and safety and social responsibility our commitment to leadership in these areas is fundamental to our long-term success and is already paying dividends our ahafo project in ghana was the first mining project to receive international finance corporation funding approval following the world bank s extractive industries review in addition our unique partnership with the university of colorado school of medicine represents a systemic approach to health initiatives 2 0 0 5 a n n ua lrepo rt 9

[close]

p. 12

around our mines we continue to play a leading role in the development and promotion of transparency and accountability for the mining industry through our participation in the international council on mining and metals as we reflect on 2005 and look to the future we see a gold price environment that offers tremendous opportunities for substantial returns on our investments we remain steadfast in our no-gold-hedging philosophy and we continue to maintain the industry s strongest balance sheet with year-end 2005 cash and cash equivalents marketable securities and short-term investments of $1.9 billion as we open 2006 our competitive advantages include an unrivaled land position approximately the size of england a pipeline of long-lived assets slated for initial production over the next four years superior trading liquidity and industry-leading environmental and sustainable development programs newmontminingcorpor at i o n 10

[close]

p. 13

we are committed to leveraging our exposure to rising gold prices for our investors in 2006 and beyond we want to thank our shareholders employees suppliers consumers of gold partners host governments and communities where we operate for their shared passion and commitment to our success we also want to thank the board of directors for their counsel and dedication to strong corporate governance sincerely we are committed to leveraging our exposure to rising gold prices for our investors pierre lassonde president wayne w murdy chairman and chief executive officer february 24 2006 2 0 0 5 a n n ua lrepo rt 11

[close]

p. 14

n ewmontminingcorpor at i o n 12

[close]

p. 15

industry leadership · only gold stock in the s&p 500 and fortune 500 · most liquid gold stock $300 million/day · gold price leverage world-class land position exploration expertise · over 32 million acres of land in the world s best gold districts · reserve growth history 110 million ounces at $12.80/oz since 1986 · fourth straight year of reserve growth 93.2 million equity ounces market-leading project pipeline · 2.5 million ounces 1 · low-risk production over 60 aaa-rated · long mine life 16-year average environmental social responsibility · international council on mining and metals chair · un global compact · international cyanide code founder portfolio investment management expertise · proven and experienced in-house team 100 transactions valued at $2.2 billion · 2005 royalty and other income of $79 million a 20 improvement over 2004 · portfolio valued at $940 million with 2005 return of 80 financial strength · no-gold-hedging philosophy · industry s strongest balance sheet with net liquidity of $925 million · third-straight year of dividend increases to $0.40 per share per year in 2005 1 estimated average over first five years of production 2 0 0 5 a n n ua lrepo rt 13

[close]