Creating Value with Every Ounce Inside back cover: Corporate Addresses, Investor Relations 16 Shareholder Information 15 Site General Managers 14 Corporate Officers 13 Board of Directors 12 Selected Financial and Operating Highlights 6 Creating Value with Every Ounce 2 Letter to Shareholders 1 Vision CAUTIONARY STATEMENT This report contains "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be covered by the safe harbor created by such section. Such forward-looking statements include, without limitation, (i) estimates of future earnings, and the sensitivity of earnings to the gold and other metals prices; (ii) estimates of future gold and other metals production and sales, (iii) estimates of future cash costs; (iv) estimates regarding future synergy savings from acquisitions; (v) estimates of future cash flows, and the sensitivity of cash flows to the gold and other metals prices; (vi) statements regarding future debt repayments; (vii) estimates of future capi- tal expenditures; (viii) statements regarding future exploration results and the replacement of reserves; and (ix) 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 expecta- tion or belief is expressed in good faith and believed to have a reasonable basis. However, such 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, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and gov- ernmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see Page 8 of the company's 2001 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 disclaims any intention to update any forward looking statement. Our vision has a simple bottom line: Newmont is dedicated to creating value with every ounce. Creating value with every ounce “We will use our global assets, operating strengths and financial World class assets flexibility to generate and capabilities solid earnings and free “Following the merger, cash flow. We will Newmont holds the pursue excellence in largest ‘land bank’ in safety as a core value Commitment to the industry with 94,000 and, in the communities employee safety, square miles in the in which we operate, environmental world’s best gold have positive impacts, protection, and provinces. Competitive working in cooperation community advantage is also with local communities. development Leverage to achieved by the In this way, we will increasing gold prices company’s in-house achieve our vision of “Our ability to operate is creating value with dependent upon our geochemical and “Newmont provides its every ounce.” record in terms of geophysical technology, shareholders maximum safety, environmental coupled with flow-through leverage -Wayne Murdy, Belief in the intrinsic stewardship, and our considerable expertise to a rising gold price. Chairman and Chief value of gold relations with the in epithermal gold Obviously, gold price Executive Officer communities. This is environments. Several leverage cuts both “The enduring value of our social license to new discoveries made ways, but in a rising gold is once again operate and it must be in the past five years in gold market, for every being recognized in the renewed every day.” both greenfield and $25 increase in the marketplace. Newmont near-mine areas will fuel gold price, we generate is passionate about its -David Francisco, future reserve growth, approximately $160 product—we believe Executive Vice and we have high million in after-tax cash that gold plays an President, Operations expectations of further flow and $110 million in important role as a success from regional net income.” portfolio diversifier.” programs as well.” -Bruce Hansen, -Pierre Lassonde, -Bruce Kay, Senior Vice President President Vice President, and Chief Financial Worldwide Exploration Officer At Newmont, we are focused on two strategic value drivers Value Creation Value Realization left: Pierre Lassonde, President right: Wayne W. Murdy, Chairman and Chief Executive Officer Creating value Realizing value through A growing Positively impacting through our operational strength royalty business the communities in merchant banking and which we operate Dear Shareholder, exploration capabilities This is an historic period for Newmont. With the acquisitions of Normandy Mining Limited of Australia and Franco-Nevada Mining Corporation Limited of Canada in February, Newmont has become the world’s premier gold company. And, as the enduring value of gold is once again being recog- nized in the marketplace, we are on the threshold of a very exciting, and rewarding, future. We have the largest market capitalization, highest gold pro- Lassonde, president, and value realization under the duction and reserves, and greatest market liquidity in the gold direction of David H. Francisco, executive vice president Building schools, industry. With our non-hedging philosophy, we are uniquely of operations. Our vision has a simple bottom line: we are promoting health and education, positioned to increase value for our shareholders from: dedicated to “Creating Value with Every Ounce.” developing infrastructure • our commitment to providing the maximum exposure to a The value creation component combines Newmont’s and rising gold price; Normandy’s proven exploration track records with a new business, Newmont Capital. Through Newmont Capital, we Growing royalty revenue over time • our world-class core operating assets; will be aggressive in creating value from our portfolio of from a ten and one-half month properties whether we are buyers, sellers or traders of target of $35 million for 2002 • the largest land position in some of the world’s best gold assets. Our unrivaled land position of 94,000 square miles districts; (244,000 square kilometers) in some of the world’s best gold districts is fertile ground for reserve growth. In addition, we • a strong balance sheet with increasing free cash flow and will continue to augment revenues from third party royalties, Operating cash flow of reduced debt; which for just ten and one-half months of 2002 is expected approximately $750 million to generate at least $35 million in revenues. Our goal is to at an average gold price of • the largest precious metals royalty income stream; and grow this royalty stream over time. This stable royalty cash $300 per ounce flow will serve as a cushion against future cyclical down- • the best skill sets in the industry to find, develop and oper- turns in the gold price. ate gold mines. Generating $400 million in Value creation is about maximizing our exploration efforts in non-core asset sales; Newmont is “The Gold Company” of choice for portfolio harnessing the strengths and core competencies of all three replacing reserves net of balance. In integrating the resources of Normandy and companies. Our goal remains to replace reserves net of pro- production at year-end Franco-Nevada into Newmont, we are focused on two duction by year-end 2002. strategic value drivers — value creation headed by Pierre 2 3 left: Pierre Lassonde, President right: Wayne W. Murdy, Chairman and Chief Executive Officer Dear Shareholder, This is an historic period for Newmont. With the acquisitions of Normandy Mining Limited of Australia and Franco-Nevada Mining Corporation Limited of Canada in February, Newmont has become the world’s premier gold company. And, as the enduring value of gold is once again being recog- nized in the marketplace, we are on the threshold of a very exciting, and rewarding, future. We have the largest market capitalization, highest gold pro- Lassonde, president, and value realization under the duction and reserves, and greatest market liquidity in the gold direction of David H. Francisco, executive vice president industry. With our non-hedging philosophy, we are uniquely of operations. Our vision has a simple bottom line: we are positioned to increase value for our shareholders from: dedicated to “Creating Value with Every Ounce.” • our commitment to providing the maximum exposure to a The value creation component combines Newmont’s and rising gold price; Normandy’s proven exploration track records with a new business, Newmont Capital. Through Newmont Capital, we • our world-class core operating assets; will be aggressive in creating value from our portfolio of properties whether we are buyers, sellers or traders of • the largest land position in some of the world’s best gold assets. Our unrivaled land position of 94,000 square miles districts; (244,000 square kilometers) in some of the world’s best gold districts is fertile ground for reserve growth. In addition, we • a strong balance sheet with increasing free cash flow and will continue to augment revenues from third party royalties, reduced debt; which for just ten and one-half months of 2002 is expected to generate at least $35 million in revenues. Our goal is to • the largest precious metals royalty income stream; and grow this royalty stream over time. This stable royalty cash flow will serve as a cushion against future cyclical down- • the best skill sets in the industry to find, develop and oper- turns in the gold price. ate gold mines. Value creation is about maximizing our exploration efforts in Newmont is “The Gold Company” of choice for portfolio harnessing the strengths and core competencies of all three balance. In integrating the resources of Normandy and companies. Our goal remains to replace reserves net of pro- Franco-Nevada into Newmont, we are focused on two duction by year-end 2002.