Good afternoon and welcome to theThird Quarter 2007 Conference Call. I would like to remind all parties today'sconference is being recorded if you have any objections you may disconnect atthis time. All parties will be in a listen-only mode until thequestion-and-answer session of today's conference. (Operator Instructions). I would now like to turn theconference over to, Mr. Richard O'Brien. Sir, you may begin.

Thank you, operator. Thanks forjoining us today on our third quarter conference call. With me today areRussell Ball, our Senior Vice President and Chief Financial Officer; Guy Landsdown, our Senior Vice President of Project Development;Randy Engel, our Senior Vice President of Strategy and Corporate Development;and John Seaberg, Group Executive, Investor Relations. While we get started I just wantto remind you that we will be discussing forward-looking information involvinga number of risks certainly which are unique to our industry as described inour SEC filings. On today's call we will focus onour third quarter financial results and we will also take the opportunity toprovide you with an update on our continuing progress with respect to ourstrategic initiatives. In the four months following myappointment as CEO, our team is focused on execution and decisiveness enablingus to successfully create the world's premier unhedged goal company, whilerenewing our commitment to our core gold business. I would remind you all that it'sonly been four months, and that while I am very pleased with the team, the teamefforts, and the focus that we've generated here in Newmont, we still have alot of work to do. As we begin to see the benefitsof our strategic efforts, we also remain focus on our day-to-day activities:including stabilizing our operating cost profile, improving our operationalperformance, developing our existing projects and creating value from ourprospective pipeline. We are also taking a renewedapproach to sustaining our business through a combination of exploration,development and from time-to-time where appropriately accretive acquisitions. Wealso know that success will not come overnight, but we'll achieve it throughconsistency, commitment and successful execution year-after-year,quarter-after-quarter and day-after-day. As previously mentioned, andshown on this slide, our strategic foundation has five main components focusingon; first: financial strength and flexibility, second: operational execution,third: project execution, fourth: exploration and commitment and fifth:leveraging the scope and…

Thanks, Dick and good afternoonall. I will start with the financial highlights for the quarter noting that thedetails are contained in our earnings release and our 10-Q, which we expect tofile later this afternoon. In addition, for those who are watching our filings,you will see we will be making three filings related to the proposedacquisition of Miramaralso hopefully later this afternoon. The extent of detailed questions on yourresults, I am sure that John Seaberg and his team will be happy to walk youthrough the numbers. We had a strong third quarter,earning $0.88 a share. Essentially doubling our earnings from the year agoquarter. It is driven largely by higher commodity prices, as we realized thebenefit of being completely unhedged both on the gold and the copper side aswell as increased production as Dick discussed earlier from our Batu Hijauoperation. We generated approximately $520 million in cash from continuingoperations, which is up about a 150% from the previous year's quarter. Maybe it's important to look,just briefly, at the negative operating cash flow number that you see on slide10. We are about $100 million for the year-to-date, because this hedge isreflecting a number of the strategic initiatives that we have implemented sincethe change in leadership at Newmont. We have used about $580 millionto eliminate the gold hedge book in Q2. We also spent about $280 million tosettle a pre-acquisition tax contingency related to tax contingency Normandy and about $180million to settle the copper hedge obligations which expired in the first halfof 2007. So when you look at operating cash flow for the year, essentially weconsume just over $1 billion getting out of those hedge positions and settlinga pre acquisition contingency. For the quarter we realized anaverage gold price of $681 per ounce, which is up 11% from the year agoquarter. Costs were $388…

Thanks Rus, and good day toeverybody. Leading to project execution the construction of our wholly-owned 200megawatt coal-fired power plant is approximately 82% complete and continues tobe on schedule for start up around the middle of 2008. Project's capital costestimates remains at between $620 and $640 million. All significant contractsincluding rail, coal and operations and maintenance are substantially complete. When fully operational the powerplant is expected to reduce Nevada'stotal costs applicable to sales by around $25 an ounce. As you can see in thepicture first coal was delivered to the project in September and we arecurrently planning first fire on oil late this year or early next year. Turning our focus now to Peruthe gold mill project of Yanacocha is approximately 85% complete, with capitalcosts remaining on budget between $250 and $270 million. This processingfacility is expected to start up in the first half of 2008 and will have apositive impact in Yanacocha's operating performance as we move in to the nextgeneration of the storied mines life with a processing of high grade oxide andtransitional ores. Shifting our focus to Australia,Boddington remains one of the largest undeveloped mines in the world withsubstantial exploration upside in current gold and copper reserves of around 9million ounces and 840 million pounds respectively. Boddington at present isapproximately 50% complete and remains on schedule. It will start up around theend of 2008 or early 2009. Located only 130 kilometers from Perth, our ability toattract scarce skilled labor to this desirable location has been favorable, atthe same time we are building Boddington. We are also taking innumerable stepsto ensure we maintain a competitive on going operating cost profile. To thatend we find a long term agreement at competitive power costs for the life ofthe project. We are also in the process ofcompleting our definitive estimate to confirm our capital costs including theimpact of escalation and a stronger Australian dollar. This estimate isexpected to be finalized by early 2008 and we will communicate it to you atthat time. Given its scale and the exploration upsides this asset representsthe corner stone of the next generation of our Australian operating portfolio. Shifting our focus to ourdevelopmental assets, our Conga copper, gold coal free project, locatedapproximately 80 kilometers from the Yanacocha in Peru is one of our more advanceddevelopment opportunities. Equity reserves at Conga currently stand atapproximately 6 million ounces of gold and 1.7 billion pounds of copper. Todate we have continued discussions with the local community and the permitting processwith the goal of making a development decision in 2008. Also among our perspectivedevelopment assets our 100% owned Akyem project in Ghana is in the evaluation andoptimization phase. With gold reserves of around 8 million ounces we continueto work towards the development of this project with a watchful eye on thepower situation in Ghana and anticipate making a development decision on thisproject in 2008 as well. It's a brief overview of ourdevelopmental project with that I will hand it back to Dick

As I have emphasized sinceassuming my current role we recognized that we can't change the mature profileof our asset base overnight nor can we change it by simply focusing only on ourinternal initiatives and projects. As a result we continue to take a fresh lookat exploration development and growth opportunities across the globe. We're evaluating prospects thatmight have been considered too small or situated in potentially challenginglocations historically. This slide shows, as part ofthese efforts we recently agreed to offer to acquire all of the outstandingcommon shares of Miramar Mining for Canadian $6.25 cash per share. Our robustlyvalued offer reflects among other things a premium that affords Miramar shareholders of the friendly transaction that isfully and unanimously supported by Miramar's Board of Directors and its seniormanagement. The offering circular will bemailed today and subject to satisfaction or waive of applicable conditionsincluding investment in Canadaapproval. We could begin to take up deposited shares on December 6th. This investment provides us anopportunity to establish a new core mining district in Canada with strong explorationpotential. Leveraging new mines technical and financial resources with theoutstanding were completed today by the Miramarteam. We believe we are best positioned to maximize the true potentials of Hope Bayassets. Once the transaction is finalizedin early 2008, we'll review all of the technical data within the context of ourstage-gate process and determine which development decision is best for therelevant stakeholders. In addition as we announced onJuly 5th, we plan to monetize components of our royalty portfolio preferablylater this year, to a dual track process to maximize for our shareholders torealized value of our discontinued merchant banking portfolio. To-date theinterest in these assets through both tracks and the associated values havebeen robust, with potential alternatives including a possible public offeringand/or private sales transactions. We will continue to work this dual…

(Operator Instructions). Ourfirst question comes from John Bridges with JP Morgan. Your line is open sir.

Hi, Dick, everybody. I wonder ifyou can give us a better guidance as to the scale of the copper operation thatyou envisage, just sort of ballpark estimate so we can at least put somethinginto our model?

Yeah. John, we are still early inthe stage-gate process and it's depending on cutoff. It can be anyway from 50to 150 million tons, which is what we are looking at right now.

Okay. And what sort of grade ofcopper are you looking at in there?

It's about a 0.2 to 0.25 plus orminus. Again, a function of cutoff capital costs and when we said it, we have anumber of people focused on that right now. The beauty of this operation andthis opportunity John is right now a lot of that oxide is what's causing us theproblem as we treat some of those ores, because of the lack of flexibilityright now in the mine plan. And then in long term those times will have to getmoved anyway so we are able to convert waste if you want into revenueproducing. So there is some nice synergy the issue for us quite frankly in thecritical pop is most operations will go to permitting and we're through theEIAs with the BLM and the relevant authorities out there.

Okay great any sort for ordermagnitude on the CapEx, what are talking sort of $50 million, $100 million orsomething?

Of the order of $150 million to$300 million

So, inflation comes again.

John, I'd just say it's stillearly days on this project lot of work to be done on it. I just think in thelight of keeping you informed on Phoenixwe felt it was important to let you know, that there is this opportunity outthere, it's several years away but we'll keep informed when we make progress.

I appreciate that the numbers arefuzzy, but just wanted to get something. And just as a follow-up on Ahafo. Thecost there have the costs been sort of abnormally high because the stripping isgoing to come down or what sort of strip ratio should we expect going forward?

John, just trying to normalize,what we had in the big quarter last year remember we started this up in thethird quarter last year.

Yeah.

So we had commercial production;we were capitalizing those initial mining costs.

Okay.

The costs last year wereartificially low as we only charged and effect the incremental costs throughCAS until we reached commercial production. The stripping in Ghana againwith the deferred stripping accounting is going to move and be pretty variablegoing forward, given the number of pits in that operation. It's a string ofpearls if you want on necklace, as opposed to one large pit. So as you get intonew pits you may have some deferred stripping and capitalization, so it's goingto really going to move around over the life of that project. And again, we canget you through John's groups, some of the stripping numbers for the quarterand you can have a look there. But don't consider Q3 '06 as indicative becauseagain we were able to capitalize some of those startup costs until commercialproduction.

Okay, how do I get to anindicative number, can you tell me what the strip ratio was in three, and whatwe should look forward…?

Well, John, we'll get you that.We have the numbers for the quarter in the attachments. We will get you toJohn's groups and look at posted on the website on the deferred strippingnumbers or the strip ratios if you want.

Okay excellent, congratulationson the quarter, and I am really forward to Q4.

Thanks, John

Our next question comes fromOscar Carbera with Goldman Sachs

Good afternoon, gentlemen;congratulations on the results. Dick, this is related to your management team.We have talked about, in the past, about the hiring of a COO and adding to thecore team at Newmont. Just wondering what those plans are now, the fact thatthe operations are, some of them appeared to be reaching a point where theirstabilizing is very encouraging. But how you guys are thinking in terms of justbuilding forward as you get, Boddington and you saw there are opportunities.That's the first one; I'll follow up another one?

Thanks, Oscar, for your question.As I mentioned at the Denvergold show, I clearly realized that as CEO, I can't put in 24 hours a day, andeven if I could, we need some additional operating strength in the company. Oneof the five priority task that we have for this year is to get the organizationstructure right by the end of this year. An acknowledgement in that organizationstructure is twofold. One, we need additional operating strength--but not justat the COO level, but at almost every level in the company. Like a lot of othermining companies, we are competing for the best talent and we are finding itdifficult and we are also being poached of some of our best talent. With respect to the COO inparticular, my senior leadership team, which is composed of 11 folks have allagreed that the company needs to get the chief operating officer or someonethat looks like that and has that responsibility and we are all over that. Thetiming of that really is only reflective of how long it takes to attract theright person and get him into the company. We want to make sure we havesomebody that fits the concept that I have for running this company, which iswholly oriented towards the company and towards team performance and it mighttake us a bit to find somebody. But we are going to find the right person andthey will help take the operations to another level and I acknowledge what yousaid that some of the companies operations have reached a bit more stability.There is no question that we are in a challenging industry environment and weneed to continue to stretch our capacity and capabilities.

Thanks, Dick. Now the other thingwas. I was wondering if you can help us put into context--during one of Bonaventure'sconference calls, basically Bonaventure stated that they were maintaining theirguidance for 1.6 million ounces during 2007. How can we think of that projectgoing into 2008, do you still expect the mill or completion of the mill in thesecond of next year and how should we think about the mine ramp up followingthat? Thanks

Yeah, Oscar what I would say iswe continue to stick with the guidance we have put forward in our 10-Klanguage, which basically says we're looking for a stable production over thenext several years. Think of the mill as really bringing forward economicwealth to the company through quicker processing of the oxide ores. It reallydoesn't add tremendous capability on a year-to-year basis in terms ofincremental allowances, it will help on the cost sides some, and it will helpenable us to better process more complex ores later. So there is lots of positives andit's a very positive economic for us, because we are processing these highergrade oxide ores more quickly rather than putting them on the leach. So weclearly have economic benefits but don't think if it as adding incrementalcapacity, think of Yanacocha as stable over the next several years.

Yeah, Oscar I'll sort of add, wehad some guidance out there for a while as Dick alluded to of that 1.6 to 1.8range and again that's just a function of stripping in grade as we mine differentdeposits, so that's the range you should be think of Yanacocha.

Okay. Great. Thanks very much

Thanks, Oscar.

Our next question comes fromVictor Flores with HSBC

Yeah, thanks. Good afternoon Ihave a question related to a Akyem. It seems from what you are saying thatyou've had another look at this project and I guess perhaps some of the concernthat you had with respect to going ahead with it have dissipated or changed orsomething is going on there. I was hoping that perhaps you could just give us asense of what has changed that's making you I guess a bit more encouragedtowards this project?

I guess, Victor, what I would sayis we're probably as encouraged as we were a year ago. We just continue toflush out the optimal way to develop this deposit. We did some work with theEPA; they asked us several questions, which we've been responding to. In themeantime, we have continued to do our community baseline studies as we moveforward to what an Akyem development might look like. But this is not just about a onehour of fun while gold prices have really gone up so Akyem looks great. This ismore about sustainable commitment to getting value out of Akyem in a form thatwe feel is sustainable. So with that one of the issues we still have is poweravailability around the Akyem and we are still narrowing down the options thatwe have for the particular mine plan to get the best part of the deposit and tomake sure that we can comply with the EPA requirements. So in summary Victor what I wouldsay is we never really lost the confidence in the project. What we've reallysaid is where the power situation makes it difficult. The increase andinflation both on capital and operating costs requires us to go back andexamine what our return profile looks like and in that we will continue to goforward with the right way to take this feasibility study towards. And what weare really saying is we are going to communicate that to you next year.

That's great thanks and if Icould just ask a follow up on Hope Bay. The folks from Miramar have put out afeasibility that looks at a fairly small project and obviously you are lookingat this as a much bigger project. They had talked at one point in time about acouple of scenarios involving both a large scale open pit operation with someunderground and then a fully underground scenario as well. What do you think ofthose particular scenarios or how are you looking at this project?

As you can imagine, the interestwe've held and currently hold in Miramar,we are very close to what they are doing from an operational perspective. Wecontinue to look at the plans that they put on the table, provide them sometechnical advise around that and I would say that at the end of the day Miramarand us, we see exactly the same thing there, which is the long-term perspectiveat greenstone belt and what we are really trying to do is to optimize what's thebest way to get started. I don't have the answer to thattoday nor does our technical team, but when we take ownership of this we willlook at the plans they currently have. We evaluate those in the context of whatelse we could do and we will make a decision. But I think it's clear that what Miramar has on the tableworks. The question for us, is there something that might work better, we arenot in a position to answer that today.

That's fine. I understand that.Just let me ask one final question. When do you think that you will have asense of how to develop Hope Bay?

Well, clearly we are going tohave a little bit of winter time here when we can think about it and we willcomeback.

A long winter up there.

Yeah.

Yeah.

Yeah, and that's when we're goingto hold the mine to or for everybody too.

Great, I will send my associates.Thank you.

Welcome.

Our next question comes from JohnHill with Citi.

Yes. Thanks, everyone, and thanksfor the detail on the call. I was just wondering if you could update us. Wherewe are at in terms of Phoenixrecoveries, and then secondarily on that, why so long to get the crusher onsit?This was supposedly a priority when we visited the site in September of 2006?

I can talk to the crusher, John.The crushers schedule is driven primarily by the delivery time on the crusheritself and as a result that we'll have it onsite towards the first or secondquarter of next year.

With respect to the firstquestion with respect to recovery, grade, processing all of those things Johnare things that we will answer in more detail when we have the definitive mineplan coming up next year. In the mean time what we are seeing is moreefficiency in what we do. As I said, I think fragmentation has lead to a littleeasier processing both through the crusher and into the mill. The mill as anymill startup you know that we're still in a period where Phoenix is not even on for a year, so we arestill working through some of those issues, but the mill is operating betterthan it has historically. We continue to see more availability, but withrespect to recoveries mill or grade or the rest of that we will continue toprovide more details as we get into next year.

John, Russ for the quarter wewere somewhere between 65 and 70.

Okay great and then if one of youcould just branch off and talk a little bit about the merchant banking assets.There has been some discussion early on that gold, assets, gold, leveragedassets and royalties would be cheaper, now it appears that potentially the goldstrike royalty is going. I was just wondering whether that's correct and whatexactly we would plan to invest and that's going to be more sort of goldexposed and unique and long-term in the world of gold and that royalty?

Yeah, I guess with respect tothat we have been pretty definitive in almost every presentation we made thatwe were selling the royalty portfolio. When you look at the royalty portfolioyou are right, gold strike is in that portfolio, as well as exposure to oil,palladium, copper, base metals any number of other things. When we sell theportfolio obviously we are trying to get the biggest dollar value that we can.Gold strike helps with that, so I think its absolute key component to where weare going forward. Where we are going to reinvest? Well, we have a number ofopportunities inside our own portfolio in a way you could think of ourreinvestment in to Miramar. Our job is really to operate goldmines and I'm definitive about that. We are going to operate, our job in somerespects, the carry over activity out of Newmont capital that we will continueto look at, is looking into junior companies that have exposure to gold, wherewe can find things in the earlier stage. Gold strike, not one of those, so aswe look forward, look for us to find earlier opportunities, opportunities thatwe believe have upsides and opportunities that come to us with operating goldexposure, that's our deal.

Okay, very clearly stated,. Thenif I could just quickly…how do we plan to stamp seasonality out of the Nevada system, that'sbeen a pretty long standing feature, year in and year out?

It's a good question; we will notstamp it out in any one year--there will be something we'll have to do overtime, but you have my management team's word on it. It's something we are goingto work through. Now, part of the variability, we have is seasonal right? But Nevada is not one of those generally, but in Nevada we do have tomanage through the many processing plans that we have, making sure that we bothfuel them as well as get the processing through them. So there is a little bit about,we shut down during the second quarter, we'll always do that, but I think withrespect to trying to levelise between the others, we are going to try to workharder to get that done. I would say, come back to us at the end of 2010 andsay, hey, you've done a great job, flattening this out, its going to take us abit to get there but we're going to get there.

Got it, thanks

John, Russ. Sorry, let me justadd something. As we've gone through a change in our planning horizon,historically, Newmont had planned on a calendar basis or a twelve year basis,four months sorry. And that had driven behaviors, but we have gone out for thisplanning cycle, which, again, we're right in the midst of that we'llcommunicate to the Board in the middle of December and to The Street inJanuary, February timeframe, is what we are asking our operators to do is to giveus a three-year plan that they can deliver on. So extending that time horizonto three years reduces that incentive to make this year look good by stealingfrom next year, which is not a particularly unique trait for Newmont. So I think part of it is behavior-driven.And as we look to the regions to deliver on the three-year plan, '08 to '10, inline with the mission and vision that we have communicated internally andexternally, I think you will see a change in behavior.

And one quick indicator of thatmight be if you look to the fourth quarter of this year or next year to seewhat sort of inventory we might be carrying over into the next year, I thinkwe'll try to work through this in a systematic way.

And John, the key for us, quitefrankly, is to look at the portfolio rather than just Nevada. I mean we can obviously look at Nevada and that is thearea that has historically been the one that's had the fourth quarter push. Butwhat we really need to do is to look at the portfolio and balance it across theentire region. For example, Boddington in '09 helpfill some of that gap in the yearend. That's the issue that we have asmanagement to manage around the portfolio just like an analyst or a PM would dowith their portfolio. We need to look at the contribution by region, and thenbalance that. And it needs to be for a longer time period maybe than we've donehistorically.

Very good. Thank you.

Our next question comes from MarkSmith with Dundee Securities.

Yeah, hi. I guess this questionis mainly for Russell. Maybe you could help me a little bit with some of themovements of deferred taxes on the balance sheet and how that reflected to thequarter? You had about $300 million added to deferred tax assets in the period?

Yeah, Mark. As we alluded toearlier, the tax calculation is pretty complex and we have a number of movingparts. What we will commit to is through John to get you a greater breakdown onthe tax calculation, including the split between current and deferred taxes. Asyou've seen, we had some significant movements negative in the second quarter,if you want, through the income statement and then positives. We'll get youthat through John. And again, we can get that posted up on the website. I think the key going forward forfolks to realize is the 32% number. And yeah, you will see movement both intodeferred and current in and around that. But for the long-term, as we see it todaywith the assets and attributes we have, 32 is a good number for a tax basis formodeling purposes. We will get you more detail when you need through John'sgroup.

Okay, good. Just following upthat a little just a little bit, you had $125 million in payable and in theoperating cash flow line. Is that a reasonable number to go below the line goforward?

Yeah, Russ. You have to be alittle careful. Remember that those payments are lagging.

Yeah. But there is not a big lagcoming, right?

And a lot of the tax paymentsthat we make on the consolidated basis are coming out at Yanacocha. So withthat profile coming down, it will look different going forward. So again, we'llget something to you that give you an indicative number, at least, based on thecurrent asset that you can plug.

Okay. Thank you very much, sir

Take care Mark.

Our next question comes fromPatrick Chidley with BJM. Your line is open

Hi. Good afternoon, everybody.Just wanted to ask about your oil prices that you've been experiencing throughthe quarter, have you hedged any oil or would you have been exposed to the spotprice for all of your diesel and what price are you looking for in the fourthquarter? What you are planning for in terms of your plans?

Patrick, you cut out a littlebit. But I think your question related to any hedging activity around oil, isthat correct?

Yes, right

Okay. So I'd just say that wedon't currently hedge oil on an accounting basis. We do have a hedge for oilwith respect to the cash distributions that we receive from Canadian oil sandsand the principal appreciation or depreciation that comes along with thatinvestment. So that's the way to think of it. At this point, we consume about 3million barrels of diesel, 3 million barrels of oil a year. That gives you somerange of the exposure that we have. And relative to that, Canadian oil sandscovers with the distribution that we currently receive about 60% of the upsidein price that we might have related to that. While it doesn't show up on theincome that way, that's generally the way we're hedged.

And Patrick, rest for '08 budgetassumption at least as of today was $80 oil and tied into that was 87.5 centson the Australian dollar. So that's what we are thinking currently now for '08,again we will assess that before we finalize numbers present to the Board andpresent to you. But clearly, both of those will put cost pressures on CIS. Butagain, the hypothesis is driven by weaker dollar is good from the marginprospective seen in the gold price.

And your Canadian oil sandsinvestments, do you intend to continue holding that?

Yeah, we have that, Patrick. Thebook value is roughly just over a billion. We paid about $300 million for thatservice. So as Dick said, a nice gain, it has been a nice hedge that workedthat well. Obviously, we can't book that gain in the hedge from an accountingperspective at least, but it is an economic hedge. As we said earlier, in the thirdquarter we will continue to evaluate that asset. And when the time is right andwe have the opportunity, we will convert that asset into cash and reinvest itin our core gold business. And we've been pretty consistent in tellinginvestors that since the restructuring and reorganization, if you want.

Okay. Just one more question, ifI may, on Ahafo. You just appear to be warning that ratio below in the fourthquarter, was that because you are not planning to have positive gradereconciliation as I think you talked about in the third quarter or is thatbecause you really think that that's maybe the case?

Patrick, I think the question wasAhafo and fourth quarter, where you see more certain grade. It's just theimpact of stripping as we move into new pit in new areas. So it's more drivenby the mine plan and the function rather than any negative issues if you wantwith grade.

More stripping than throughput?

Yes, exactly. Or more strippingand maybe lower grade. The throughput is largely affixed again. The throughputissue on the power side, which has been the issue, Ghana has improved, the rains havecome and the dam levels are up so, we do expect to generate less powerourselves and more through the grid. However, for those who have been watchingthe power situation in Ghanathere was a public announcement, I think it was this week or it might have beenlast week of rate increases. And obviously that will impact us and we will haveto work that through in the economics on achievements as well.

Okay. Well, thanks a lot. Welldone and a good quarter.

Thanks.

Our next question comes fromBarry Cooper with CIBC.

Yeah, good day. A few questions.First of all, fairly simple one, maybe, could you explain the drop in thedepreciation rate for Nevada.You basically dropped at $40 amount quarter-on-quarter, about $30 from firsthalf. That seems to be quite a bit for what we would normally consider a stablearea?

Well, Barry that's good question.We had two things going on. We looked in the second quarter and you'll see thatin our Q where we reassessed assets lives, particularly on the whole fleet. Wehad been using an assumption of I think it was seven years on our largeequipment fleet with some of the improvements in the maintenance function. Wehave extended that to 10.5 year, which is probably equates about 75000 hours ona whole truck round numbers. So that was part of it and therest was in moving with production. Again, the split is about 50-50 and itvaries by region between units of production and on the straight line message.So, again, some of it is the mix of production whether it's coming fromunderground or open pits and affect where we are processing it so. You will seethat for the Company we have backed off on the guidance for DD&A for theyear by about the same number $40 million to $50 million.

Great. Okay. So going forwardwhat you suggest we look at them?

Yeah. I think, Barry, thisquarter is pretty indicative. Again, we had a lot of production coming out ofbars and that will take some DD&A with it, but so that revised number seemsto be a reasonable estimate as we look forward in the planning process, youknow, with answers around 5.4 million round numbers.

Okay. Good. And then on yourother guidance on the copper production 190 million pounds to 210 millionpounds you add 183, I am just wondering, I realized you don't like probablychanging guidance all that much, but that seems to be a pretty slow pitchtheir?

Sorry, Barry for the year and Iam just looking at the release on page 11 of page 21. We are about 170.

Yeah. Are you quoting sales, orare you quoting production?

Sales.

Okay. So there's a slightdifference there okay.

There is a difference, Barry andthat's what Dick alluded to earlier with inventories moving around. And again,we are still currently today in the bottom of the pit; the rains have notcoming in. I don't know if its alumina or lumina, but we still have a shovel inthe pit. So, again, we will look to balance the production throughout theportfolio and that means, you may see some operations sitting on more inventoryat yearend. Again, the next is the function of how long we can access that highgrade in the bottom of that pit.

Okay. Then the final question Ihave is, just wondering what your view is, and maybe its not a view, maybe it'sa defensive position that you undertake of the overall, the 1872 Mining Law,where defense are talking about imposing a 4% royalty on all federal land. Howmuch of your production comes off of nonpatented land in Nevada?

This is good for exciting us. Ibelieve that our reserve in Nevada,only 4 million assets are on federal land at this time and our expectation isthat in final bill, you won't see a royalty on existing reserves.

Yeah. I think it will get washeddown to nothing, pretty much by the time, it gets beaten around there.

That's certainly our hope and ourexpectation at this point.

Yeah. That would my guess as wellbut you never know sometimes. Okay. Thanks a lot.

Sure

Our final question comes fromJohn Tumazos with John Tumazos Very Independent Research. Your line is open.

Congratulations on theimprovement. I've several questions, and maybe you can address some of them.How much output do you expect to get from miners in the fourth quarter first.Second, is it right to assume that part of Miramar's availability was thedifficulty of staffing management and other positions in the far north, andwill there will be more acquisitions where Miramar's ability to bring talentedstaff moves the project along as a unique synergy, and finally in the Phoenixredrilling, what is the data you are looking for. Are you trying to exactlycharacterize ore hardness, oxide mix, sulphide at a vertical character or isthere an uncertainty as to the gold or copper content or some other attribute?

Right, I will take those John,so, first on Midas. Think of Midas as a 10,000 ounce a month producer. As weramp up during the fourth quarter recognizing that it's already the end ofOctober, at best, we have two months at 10,000 ounces, at best. I would suggestthat we are moving into new ground, new stoping, still trying to get it rightout there. It will come in less than that. But think of it in that range;that's our capability on that same. We will do 20 that is it at the most. So,think of it that way. With respect to Miramar, Miramar was not reallyavailable. Miramar was something that weunderstood the project, we understood the potential of the Green Stone belt,and we just worked with the old, with Miramara company that we had an invested in for sometime. I think they have done apretty extraordinary job of keeping their team focused on drilling, on puttingthe mine plan together. Clearly one of the things that Newmont does bring tothis operation and answer to your sub part to this, I think that Newmont doeshave the capability, the technical capability and other capabilities to reallywork through some of these issues that maybe, some other companies don't have. We also have the balance sheetstrength, and we have a solid base of production that allows us both in Canadaand in other places throughout the world to take some risk. I think that that'sone of the things you give when you buy a major gold company. We can take aheadand we can still keep on taking just like we did with what happened in East Pakistan. Now I would suggest going forwardwhen I talk about scope and scale benefits. That is exactly the kind of thingthat I hope we can take other places. Does that mean more…

If I could follow-up concerning Phoenix for the first 46 holes suggesting net-net betteror worse data, and concerning Miramar,just cruising their website there were a lot of job openings. It seems likethere were more jobs in management vacant and that may be filled. And I didn'tget the impression they have any material undisclosed with that because it wasall up on the web. So it didn't give the impression like they were going to beon schedule with the small those north ones. And I would think there must be alot of companies and situations where they can't really stop their projectsthat would be opportunities, not really bidding more situations.

That could very well be respectto Miramar. Ihaven't had the time to cruise other people's website to see if that's thecase, but we do have a group that keeps their ears to the ground here, so we'llkeep looking for those opportunities. And with respect to Miramar's, as I said,I think we'll work a complimentary process here to keep the people they have toadd our people and move this project forward so that's sort of a last answer tothat, and with respect to Phoenix, again, we've drove those holes. That doesn'tmean we have had time to assay all of them, it doesn't mean we have anyconclusion at this point, still preliminary as we keep saying when we get themine plan together, we will update analysts. So with that, I want to thankeverybody for their attention today, and again, if you other questions, JohnSeaberg and the IR team would be happy to follow up with you. Thanks again.

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