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2007 annual report newmont dawning a new day

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twin creeks nevada contents 1 6 7 8 letter to shareholders board of directors corporate officers 5-year shareholder return 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 copper production and sales ii estimates of future costs applicable to sales and the components thereof iii estimates of future capital expenditures and project costs iv estimates regarding timing of future development construction or production activities v statements regarding future exploration results and reserves and vi statements regarding potential cost savings productivity operating performance cost structure and competitive position 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 forward-looking 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 2007 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 news release or to reflect the occurrence of unanticipated events except as may be required under applicable securities laws front cover photo hope bay canada

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letter to shareholders was a year of significant change at newmont as the management team began to re-orient the company and its strategy to build sustained value for our shareholders in 2007 we identified and implemented initiatives to focus newmont on its core gold business expand our growth and exploration opportunities unlock value embedded in our capital structure and begin to reduce our costs 2007 highlights include · production of 5.3 million equity ounces of gold in line with our original guidance · major investments in our business including over $1 billion in new gold projects and cost-cutting initiatives · elimination of our gold hedge book which positions newmont as the premier unhedged gold company and improves our financial strength and flexibility · monetization of our royalty portfolio and other non-core assets · acquisition of miramar mining corporation which gives us control of a major gold deposit in hope bay canada we were especially pleased to be selected in september as the only gold company in the prestigious dow jones sustainability index-world which reflects the dedication of all of the members of the newmont family to running our business in an economically environmentally and socially sustainable way 2007 richard t o brien president chief executive officer 2007 annual report 1

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hope bay canada preparation 2 newmont we made significant strides in 2007 to put newmont and our shareholders in a position to benefit from the current gold price environment our strategic actions in 2007 provide momentum that we will build upon by successfully executing against our 2008 business plans and delivering strong operating and financial results for our shareholders we enter 2008 prepared to re-establish newmont as the gold company of choice 2007 ­ a year of transformation in 2007 we renewed our focus on the most effective ways to unlock and provide sustainable value for our shareholders one immediate decision in june was to eliminate our 1.85 million ounce gold hedge book this has maximized our gold price leverage and benefited newmont and its shareholders as the price of gold has since appreciated from approximately $650 per ounce to approximately $900 per ounce in the first quarter of 2008 at the same time we further improved our financial strength and flexibility by issuing $1.15 billion of convertible senior notes and monetizing a significant portion of our non-core merchant banking portfolio through a dual-track process that pitted strategic buyers against an independent ipo process we realized significant value for these non-core assets receiving $1.2 billion in gross proceeds during 2007 we invested over $1 billion in new projects within our existing portfolio of properties including over $500 million on our boddington gold mine in australia over $300 million on our power plant in nevada and approximately $150 million on our gold mill in peru recognizing the importance of increasing our external focus on exploration and growth opportunities in order to enhance our prospects over the longer term we acquired the balance of the shares of miramar mining corporation that we did not already own for $1.3 billion the acquisition of miramar gives us control of canada s hope bay deposit containing a gold resource base of over 10 million ounces and the opportunity to establish a new core gold mining district in an aaa-rated country.

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yanacocha peru operationally in nevada our leeville underground mine is now running at design capacity of 3,200 tons per day at our phoenix operation we continue to work through metallurgical and ore control issues our 200 megawatt power plant recently initiated first fire on coal as it ramps up for completion in mid-2008 and is expected to bring cost savings to our most significant region for the foreseeable future in peru the construction of the yanacocha gold mill is scheduled to be complete by mid-2008 bringing operational improvements as we transition from processing oxide material to the more metallurgically complex transitional and sulfide ores this investment should increase life-of-mine recoveries from the existing reserve base of up to one million ounces while enhancing our potential to further expand reserves in ghana the ahafo mine completed its first full year of operation in 2007 producing more than 450,000 ounces of gold although the national drought-related power shortages have been less frequent than we originally anticipated we continue to work with the ghanaian government and an industry-wide consortium to formulate a longterm solution to the country s power supply challenges momentum 2008 growth opportunities as we look to the future newmont has substantial organic growth opportunities in peru we intend to build upon our engagement with local communities over the past several years focusing our reinvestment efforts on the continued evaluation and optimization of the conga project a large gold-copper porphyry deposit with over 11.5 million ounces and 3.2 billion pounds of gold and copper reserves respectively in australia we intend to continue to focus our reinvestment effort on boddington which we expect to start up in late 2008 or early 2009 and will replace some of the higher-cost production coming from our more mature operations in the region with anticipated equity gold production of approximately 700,000 ounces at competitive costs and a long mine life this project represents the next generation of mining in this region in ghana having gained significant operational experience at ahafo and a better understanding of the country s power supply challenges we are well positioned to refocus our efforts on the potential development of the akyem project 2007 annual report 3

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boddington australia commitment 4 newmont however we know that operational and project development performance alone will not be sufficient to sustain let alone grow our business we intend to renew our pursuit of growth opportunities through a disciplined investment strategy that combines exploration project development opportunities and compelling acquisitions the successful acquisition of miramar which allows us to control and explore a roughly 80 by 20 kilometer greenstone belt with substantial exploration potential and provides opportunities for sustainable lower-cost production and future higher grade reserve replacement reinforces the value of thinking and investing strategically we have begun to transform this company the new day has dawned at newmont and we welcome the opportunities to focus on what lies ahead in our journey to reassert ourselves as the gold company of choice we are blessed with an array of opportunities in peru australia and ghana we have turned the corner in nevada and are beginning to reap the benefits of our reinvestment efforts in that region we now have the opportunity to develop the hope bay deposit a district-scale exploration project in canada we appear to be in a sustainable bull market for precious and base metals and above all we have the benefit of having some of the most talented dedicated people in the industry a continuing commitment to communities as we look to 2008 and beyond we are determined to build on our initial successes in 2007 we understand that we still have much hard work ahead of us to make our business even more economically environmentally and socially sustainable this will require renewed commitment and consistent execution every day first and foremost we remain committed to the safety and development of our nearly 15,000 employees and 20,000 contractors in june 2007 we lost a valuable employee in nevada but more importantly a family lost a wonderful husband and father we are proud of newmont s safety record which is consistently among the best in the industry but dan shaw is a constant reminder of the need to keep safety first in everything we do we also remain steadfast in our commitment to sustainable partnering with our host communities in addition to our inclusion in the dow jones sustainability index­world we are also proud of

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power plant nevada our decision to support an independent and industry leading community relationships review this study will help us and our stakeholders better understand the dynamics and relationships within our host communities what we are doing well and where we can improve newmont ­ a new day has dawned i wish to congratulate vincent calarco on his appointment as non-executive chairman of the board and welcome joe carrabba as our newest board member we look forward to vince s leadership and joe s counsel based on his vast experience in the mining industry i would like to thank our board for their strategic counsel active support and ongoing dedication to strong corporate governance wayne murdy and pierre lassonde who both retired from our board at the end of 2007 and tirelessly pursued excellence in and passion for newmont and our industry and robin plumbridge who will be retiring in april after 25 years of distinguished service on the board and in closing i would like to extend a special thanks to our employees around the world for their hard work skill and dedication i would like to thank our shareholders for supporting us in our efforts to build on the momentum we generated in 2007 and i would like to thank our host communities governments contractors and suppliers for their ongoing partnership in our effort to create sustainable value and opportunity for all our stakeholders efficiency sincerely richard t o brien president and chief executive officer 2007 annual report 5

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execution board of directors glen a barton retired chairman and chief executive officer of caterpillar inc vincent a calarco non-executive chairman of newmont mining corporation retired chairman president and chief executive officer of crompton corporation now known as chemtura corporation joseph a carrabba chairman president and chief executive officer cleveland-cliffs inc noreen doyle retired first vice president of the european bank for reconstruction and development veronica m hagen chief executive officer of polymer group inc michael s hamson chairman of hamson consultants pty ltd and retired joint chairman and chief executive officer of mcintosh hamson hoare govett limited now merrill lynch australia robert j miller principal of dutko worldwide and former governor of the state of nevada richard t o brien president and chief executive officer of newmont mining corporation robin a plumbridge retired chairman of gold fields of south africa limited john b prescott chairman of asc pty ltd and retired managing director of the broken hill proprietary company limited donald c roth managing partner of emp global llc james v taranik director of mackay school of earth sciences and engineering university of nevada 6 newmont

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boddington australia corporate officers richard t o brien president and chief executive officer britt d banks executive vice president legal and external affairs russell ball senior vice president and chief financial officer darla caudle senior vice president human resources m stephen enders senior vice president worldwide exploration randy engel senior vice president strategy and corporate development guy lansdown senior vice president project development and technical services david a baker vice president environmental affairs and sustainable development d scott barr vice president technical strategy and development michael byrne vice president safety nico duursema vice president project execution david r faley vice president corporate development stephen p gottesfeld vice president communications and public affairs david v gutierrez vice president tax and accounting brian a hill vice president asia pacific operations brant hinze vice president north american operations jeffrey r huspeni vice president african operations roger johnson vice president and chief accounting officer thomas p mahoney vice president and treasurer leadership 2007 annual report 7 gordon r nixon vice president technical services blake m rhodes vice president and chief counsel carlos santa cruz vice president south american operations john seaberg vice president investor relations sharon e thomas vice president and secretary william m zisch vice president planning

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5 -year shareholder return comparison the following graph assumes a $100 investment reinvestment of dividends if any on december 31 2002 in each of the company s common stock the s&p 500 and the phlx gold/silver sector xausm cumulative total return $300 $250 $200 $150 $100 $50 $0 dec 2002 dec 2003 dec 2004 dec 2005 dec 2006 dec 2007 newmont mining corporation s&p 500 phlx gold silver index dec 2002 dec 2003 dec 2004 dec 2005 dec 2006 dec 2007 newmont mining corporation s&p 500 phlx gold silver index xausm $100 $100 $100 $168 $129 $144 $155 $143 $133 $188 $150 $173 $160 $173 $195 $175 $183 $241 8 newmont

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united states securities and exchange commission washington d.c 20549 form 10-k mark one È annual report pursuant to section 13 or 15d of the securities exchange act of 1934 for the fiscal year ended december 31 2007 or transition report pursuant to section 13 or 15d of the securities exchange act of 1934 for the transition period from to commission file number 001-31240 newmont mining corporation exact name of registrant as specified in its charter delaware state or other jurisdiction of incorporation or organization 84-1611629 i.r.s employer identification no 1700 lincoln street denver colorado address of principal executive offices 80203 zip code registrant s telephone number including area code 303 863-7414 securities registered pursuant to section 12b of the act title of each class name of each exchange on which registered common stock $1.60 par value new york stock exchange securities registered pursuant to section 12g of the act none indicate by check mark if the registrant is a well-known seasoned issuer as defined in rule 405 of the securities act yes È no indicate by check mark if the registrant is not required to file reports pursuant to section 13 or section 15d of the exchange act yes no È indicate by check mark whether the registrant 1 has filed all reports required to be filed by section 13 or 15d of the securities exchange act of 1934 during the preceding 12 months or for such shorter period that the registrant was required to file such reports and 2 has been subject to such filing requirements for the past 90 days yes È no indicate by check mark if disclosure of delinquent filers pursuant to item 405 of regulation s-k is not contained herein and will not be contained to the best of registrant s knowledge in definitive proxy or information statements incorporated by reference in part iii of this form 10-k or any amendment to this form 10-k È indicate by check mark whether the registrant is a large accelerated filer an accelerated filer a non-accelerated filer or a smaller reporting company see definition of accelerated filer large accelerated filer and smaller reporting company in rule 12b-2 of the exchange act check one large accelerated filer È accelerated filer non-accelerated filer smaller reporting company indicate by check mark whether the registrant is a shell company as defined in rule 12b-2 of the exchange act yes no È as of june 29 2007 the aggregate market value of the registrant s voting and non-voting common equity held by non-affiliates of the registrant was $17,524,404,968 based on the closing sale price as reported on the new york stock exchange there were 435,838,958 shares of common stock outstanding and 17,449,759 exchangeable shares exchangeable into newmont mining corporation common stock on a one-for-one basis on february 14 2008 documents incorporated by reference portions of registrant s definitive proxy statement submitted to the registrant s stockholders in connection with our 2008 annual stockholders meeting to be held on april 23 2008 are incorporated by reference into part iii of this report.

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table of contents page item 1 part i business introduction segment information export sales etc products hedging activities exploration licenses and concessions condition of physical assets and insurance environmental matters employees forward-looking statements available information 1 1 2 2 4 4 5 6 6 7 7 8 9 9 11 17 17 18 24 26 33 33 33 item 1a risk factors risks related to the mining industry generally risks related to newmont item 2 properties gold and copper processing methods production properties operating statistics proven and probable equity reserves item 3 item 4 legal proceedings submission of matters to a vote of security holders part ii item 5 item 6 item 7 market for registrant s common equity related stockholder matters and issuer purchase of equity securities selected financial data management s discussion and analysis of consolidated financial condition and results of operations overview accounting developments critical accounting policies consolidated financial results results of consolidated operations recently issued accounting pronouncements and developments liquidity and capital resources environmental forward-looking statements item 7a quantitative and qualitative disclosures about market risk metal price foreign currency hedging fixed and variable rate debt pension and other benefit plans i item 4a executive officers of the registrant 35 36 37 37 40 42 47 55 65 66 73 74 75 75 75 75 78

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page item 8 item 9 financial statements and supplementary data changes in and disagreements with accountants on accounting and financial disclosure 79 159 159 159 item 9a controls and procedures item 9b other information part iii item 10 item 11 item 12 item 13 item 14 directors and executive officers of the registrant executive compensation security ownership of certain beneficial owners and management and related stockholder matters certain relationships and related transactions principal accountant fees and services part iv item 15 exhibits and financial statement schedules 160 160 160 161 161 162 s-1 e-1 signatures exhibit index ii

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this document including information incorporated herein by reference contains forward-looking statements within the meaning of section 27a of the securities act of 1933 and section 21e of the securities exchange act of 1934 which involve a degree of risk and uncertainty due to various factors affecting newmont mining corporation and our affiliates and subsidiaries for a discussion of some of these factors see the discussion in item 1a risk factors of this report part i item 1 business dollars in millions except per share per ounce and per pound amounts introduction newmont mining corporation is primarily a gold producer with significant assets or operations in the united states australia peru indonesia ghana canada bolivia new zealand and mexico as of december 31 2007 newmont had proven and probable gold reserves of 86.5 million equity ounces and an aggregate land position of approximately 42,680 square miles 110,550 square kilometers newmont is also engaged in the production of copper principally through its batu hijau operation in indonesia newmont mining corporation s original predecessor corporation was incorporated in 1921 under the laws of delaware newmont s corporate headquarters are in denver colorado usa in this report newmont the company our and we refer to newmont mining corporation and/or our affiliates and subsidiaries all dollars are in millions except per share per ounce and per pound amounts newmont s revenues and long-lived assets are geographically distributed as follows 2007 revenues 2006 2005 long-lived assets 2007 2006 2005 united states peru australia/new zealand indonesia ghana other1 1 29 20 15 28 6 2 29 32 15 19 3 2 23 35 15 23 4 39 11 12 15 8 15 54 10 8 15 8 5 55 10 7 17 6 5 other includes canada mexico and bolivia during june 2007 newmont s board of directors approved a plan to cease merchant banking activities merchant banking previously provided advisory services to assist in managing the company s portfolio of operating and property interests merchant banking was also engaged in developing value optimization strategies for operating and non-operating assets business development activities merger and acquisition analysis and negotiations monetizing inactive exploration properties capitalizing on proprietary technology and know-how and acting as an internal resource for other corporate groups to improve and maximize business outcomes as a result of the board s approval of management s plan to cease merchant banking activities the company recorded a $1,665 non-cash charge to impair the goodwill associated with the merchant banking segment in the second quarter of 2007 on october 9 2007 the company announced the proposed acquisition of miramar mining corporation miramar and offered to acquire all of the outstanding common shares of miramar for c$6.25 in cash as of december 31 2007 approximately 155 million common shares of miramar had been validly deposited to newmont s offer newmont accepted and paid for such shares representing approximately 70 of the common shares of miramar which in addition to the 18 million shares previously owned by the company brought the company s interest in miramar to approximately 78 miramar is a canadian gold company that controls the 1

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hope bay project a large undeveloped gold project in nunavut canada the hope bay project is consistent with the company s strategic focus on exploration and project development and was acquired with the intention of adding higher grade ore reserves and developing a new core gold mining district in a aaa-rated country in january 2008 newmont acquired approximately 40 million additional common shares of miramar at a price of c$6.25 per common share bringing its interest in miramar to 96 this successfully completed the offer to acquire all of the outstanding common shares of miramar newmont has mailed a notice of compulsory acquisition pursuant to the business corporations act british columbia to acquire all the remaining common shares of miramar that were not acquired pursuant to the offer as a result of the acquisition newmont owns the hope bay gold mining project in the nunavut territory of canada on december 20 2007 newmont sold its portfolio of royalty assets and certain other non-core investments to the new franco-nevada corporation in a cash transaction for $1,187 resulting in a $905 pre-tax gain for additional information see item 7 management s discussion and analysis of consolidated financial condition and results of operations segment information export sales etc we have operating segments of nevada yanacocha in peru australia/new zealand batu hijau in indonesia africa and other operations comprised of smaller operations in bolivia mexico and canada we also have an exploration segment see note 30 to the consolidated financial statements for information relating to our business segments our domestic and export sales and our non-dependence on a limited number of customers products gold general we had consolidated sales of 6.2 million ounces of gold 5.3 million equity ounces in 2007 7.2 million ounces of gold 5.9 million equity ounces in 2006 and 8.2 million ounces 6.5 million equity ounces in 2005 for 2007 2006 and 2005 78 86 and 84 respectively of our net revenues were attributable to gold sales of our 2007 gold sales approximately 38 came from nevada 25 from yanacocha 19 from australia/new zealand 8 from batu hijau and 7 from africa references in this report to equity ounces or equity pounds mean that portion of gold or copper produced sold or included in proven and probable reserves that is attributable to our ownership or economic interest most of our revenue comes from the sale of refined gold in the international market the end product at our gold operations however is generally doré bars doré is an alloy consisting mostly of gold but also containing silver copper and other metals doré is sent to refiners to produce bullion that meets the required market standard of 99.95 pure gold under the terms of our refining agreements the doré bars are refined for a fee and our share of the refined gold and the separately-recovered silver are credited to our account or delivered to buyers gold sold from batu hijau and a portion of the gold from phoenix in nevada is contained in a concentrate gold uses gold has two main categories of use fabrication and investment fabricated gold has a variety of end uses including jewelry electronics dentistry industrial and decorative uses medals medallions and official coins gold investors buy gold bullion official coins and jewelry gold supply the supply of gold consists of a combination of current production from mining and the drawdown of existing stocks of gold held by governments financial institutions industrial organizations and private individuals in recent years current mine production has accounted for 60 to 70 of the annual supply of gold 2

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