Good morning, and welcome to Newmont Mining First Quarter 2012 Earnings Conference Call. [Operator Instructions] Today's conference is being recorded. If anyone has any objections, please disconnect at this time. I'd now like to turn the call over to John Seaberg, Vice President of Investor Relations for Newmont Mining Corporation. Sir, you may begin.

Thanks, operator, and good morning, everyone. Welcome to Newmont's First Quarter 2012 Earnings Conference Call. Joining us today are Richard O'Brien, President and Chief Executive Officer; Gary Goldberg; Executive Vice President and Chief Operating Officer; Russell Ball, Executive Vice President and Chief Financial Officer; and other members of our executive leadership team. Before we begin, I'd like to refer you to our cautionary statement on Slide 2. We will be discussing forward-looking information which is subject to a number of risks as further described in our SEC filings which can be found on our website at newmont.com. And now I'll turn the call over to Richard O'Brien.

Thanks, John. For those of you on the webcast, we'll begin on Slide 3. As we announced last year during our Investor Day in New York, we continue to focus our efforts on offering shareholders a combination of competitive production growth and returns, exploration upside, balance sheet strength and a commitment to return capital back to shareholders. Our first quarter financial and operating results supported our efforts in each of these areas, with consolidated revenue of $2.7 billion, up 9% from the prior-year quarter; operating margins, up 29% on a 22% increase in the average realized gold price of $1,684 per ounce; stable gold production of 1.3 million ounces; operating costs well within our guidance; and a 75% increase in our dividend over the prior year's quarter to $0.35 per share. We are maintaining our 2012 outlook for production, costs applicable to sales and capital spending. Regarding our exploration upside, we continue to see the potential to add the equivalent of 90 million ounces of gold to reserves between 2011 and 2020. And in 2011, as disclosed previously, we made significant progress by adding 11.6 million ounces of gold to reserves or approximately 10% of that target. Our balance sheet continues to strengthen and to provide additional financial flexibility. We recently took advantage of favorable debt markets to raise $2.5 billion of senior notes, to repay borrowings and replenish the balance sheet. Russell will speak to this in a few moments. Turning to Slide 4, as many of you know, our growth potential includes a number of new projects, including the Akyem project in Ghana where construction is now 40% complete and going very well. Our growth potential also includes our Conga project and other projects in Peru. As most of you have heard, the Conga project's environmental impact assessment,…

Thanks, Richard, and good day, everyone. Slide 5 contains the financial highlights, what I consider a solid quarter with a nice positive in regard to operating costs. Adjusted net income of $578 million, or $1.17 a share, was slightly ahead of expectations, driven largely by those lower operating costs. A reconciliation of adjusted net income to net income reported under U.S. GAAP is included as an appendix on Slide 22 and reflects a $71 million charge, net of tax benefits of $4 million, for discontinued operations from an increased accrual related to the Holt property royalty. More detail on this can be found in Note 10 on Page 11 of the 10-Q. And in addition, a write-down of $24 million in marketable securities acquired through the Fronteer acquisition in 2011, net of the miscellaneous asset sales. Cash from continuing operations of $613 million for the quarter was off 38% from the year-ago quarter, largely due to working capital changes. I'll provide some color on this shortly. Moving to Slide 6, attributable gold production of 1.3 million ounces is essentially in line with a year ago despite a much lower contribution from Batu Hijau. Gold costs applicable to sales of $620 an ounce, while up 11% from the year-ago quarter, were approximately $20 an ounce below budget for the quarter. More on that in a moment. Our gold operating margin continues to expand with a 29% increase to $1,064 an ounce on a 22% increase in the realized gold price to $1,684 an ounce. Slide 7 provides more detail on the decrease in operating cash flow from the year-ago quarter. As you can see, we benefited by almost $400 million from a higher realized gold price. However, this was offset by lower copper revenues due to lower production at Batu Hijau,…

Thanks, Russell. From a safety perspective in the first quarter, we incurred 6 serious injuries and no fatalities to our workforce. On Slide 10, you'll see that lower year-over-year production from our Asia-Pacific region was offset by increases in North and South America, while Africa's production was down slightly due to production of slightly lower-grade material in line with the mine plan. Those production impacts were reflected in our CAS, with APAC incurring the largest increase in CAS as we spread higher stripping costs, particularly at Batu Hijau across a lower production base. Turning to Slide 11, our North American production was 489,000 ounces in the first quarter, up slightly from a year ago due to new contributions from underground mining at Exodus and Pete Bajo in Nevada, along with higher leach placement at La Herradura and the start of production at Noche Buena in Mexico. CAS was $613 per ounce, down just slightly from a year ago due to lower inventory drawdown costs. Recall that a year ago, Newmont was in the final stages of remediation at Gold Quarry, so in the first quarter of 2011, we mined less material than in 2012. Looking to Q2, we expect to complete repairs at the Leeville vent shaft by June. Additionally, I'd like to remind you that the second quarter production is historically Nevada's lowest quarter, and it will be again this year, due primarily to annual scheduled maintenance at the Mill 6 roaster in Nevada, which usually lasts about 30 days. Over the last couple of years, it has been roughly 10% to 20% lower production than the other 3 quarters of the year. The impact of this downtime has been incorporated in the full year gold production outlook for Nevada of 1.725 million to 1.8 million ounces. Turning to…

Thanks, Gary, and thanks, Russell. I'll wrap up by reiterating that execution has been and will continue to be job #1 at Newmont. And what do we mean by execution? We mean delivering safely on our goals for production, costs and capital. We also mean bringing projects into production effectively and efficiently. We believe firmly that our commitment to execution, paired with an emphasis on capital returns, both of and on capital, sets us apart in the industry, and we absolutely expect this focus to continue. Thanks for listening to the call. And operator, we'll now open it up for questions.

[Operator Instructions] Our first question from John Bridges, JPMorgan. John D. Bridges - JP Morgan Chase & Co, Research Division: Just wondering if you could sort of give us a little bit of guidance as to what sort of the changes in the plan in Peru at Conga could -- how big a change in cost could that have?

John, that's precisely what we're evaluating. Just to put it in the context, as we are going through this review, which I expect will take a bit of time, we're evaluating both the technical aspects. And as I said, the first thing to recognize is that the EIA that we did, did meet all the technical requirements for its approval and did conform to both international and Peruvian standards. So we will continue to evaluate the recommendations around things that we should consider. When we evaluate that, we'll look at 2 things, both how it impacts the timing of the Conga project, as well as the cost. So that's something that we're in the process of evaluating. And recognizing that we just received the report last week, we're still in process on that. But I guarantee you, John, when we go through this, when we get to the point where we know what the cost structure would be, we are going to look at the economics of this project, just as we've said, and we feel that we have other options in the portfolio should those economics turn out to not be favorable and that's something that we could not go forward with. That said, that's not where we are today. We continue to evaluate. John D. Bridges - JP Morgan Chase & Co, Research Division: And you've got a dividend to maintain as well?

We do, and we feel absolutely good about maintaining that dividend with or without Conga. John D. Bridges - JP Morgan Chase & Co, Research Division: And further on that, on the cost side, I see you've made a bit of progress there. Any areas that you feel you can focus on to better control costs?

Yes, I think as Russell said, we have a number of areas where we are going to focus, and I think it goes right on through, as we look at the opportunities that we have in the world today, I think one of the things you're going to see is us focus more on select opportunities and really continue to build the early stage of the pipeline. But looking at exploration of the advanced projects, we probably will have some opportunities in that as we go forward even this year to reduce capital, yet not impact the plans that we have, and I'd say right on through project construction, where we are going to be looking in particular at our overheads, as well as the project teams that we have in place. And then right on through in the G&A, and when I say G&A, I mean the corporate-wide structure both in Denver and around the world to see where we have duplication. We have been investing, as we have talked about, in new systems. Our SAP rollout will be completed by the end of the year. We will be incorporating savings going forward from that as we look into our 2013 budget process and cycle. And in that plan, I fully expect that we will see costs come down across the company. John D. Bridges - JP Morgan Chase & Co, Research Division: And just finally, with this change to some of the Canadian reporting companies to IFSR (sic) [IFRS], then they seem to have more flexibility now on how they report costs. Would it be possible to get a bit more information on strip ratio so we can sort of better compare your costs with some of those guys?

John, it's Russ. Yes, clearly, under U.S. GAAP, we have, as you, I think, alluded to, less flexibility around that reporting. We are looking at providing more information around an equivalent to a 43-101. We're working through some of the legal issues related there, too. We will endeavor, and John's group has been working on this to provide more of that color to let you guys do a better job modeling perhaps at our Investor Day on May 23. So you should look for more granularity around the projects on May 23. It probably won't get us all the way to where you'd like to be, but it'll certainly get us further than where we are today.

Our next question from David Haughton, BMO Capital Markets.

Yanacocha had a pretty good result going through the mill. The milling rate was well above what we thought on the grades. What should we be thinking about that going forward?

Yes, David. It's Gary Goldberg here. We had higher grades in particular in the first quarter, and that was expected. Little better results and what might have been modeled at the one pit, but right now, we're still looking at staying within the guidance that we provided.

Okay. And the nameplate of the mill was around about 6 million tons per annum, but it seems to be overachieving. Should we -- is that just the softness of the ore at the moment? Or is that, that you've de-bottlenecked it so that we can see sustained good throughput?

It's Richard, David. We have had success at that mill from really the day we started it to actually get over nameplate and maintain it there. And I think it's a combination of both the ore quality, but also, we have done a significant study over the last year or 2 on a business excellence study to get more throughput. And that's true of our mills around the world, but this is one where we actually see it in practice every day.

Okay. And I guess philosophically from the point of view of Conga, one of the appeals, I guess, of Conga was that it's like a trial mine of potential sulfides below Yanacocha. Where does the Yanacocha sulfides fit in all of this? Is it just still too nebulous for you to be thinking about it?

Yes, so let me take that. Actually, what we said about the Conga project was that it was going to help get us more into copper, and it does have the quality of both copper and gold in a larger porphyry. It is a different deposit though than Yanacocha. This is a typical sulfide deposit -- or copper porphyry, rather. And when we're talking about the deposits below Yanacocha, it's significantly different in that it is a deposit which is going to require more technical work for us to assess the commercial practicability of actually producing that. And what I would say is, as we review Conga, we are reviewing all of our investments in Peru, including those potential deposits. So all of that is something that we're looking at, at the moment. And as we get to Investor Day and beyond, we'll keep you informed as to what we think of the prospects of those. So I think it's both timing and, as we've said, technical feasibility for those, so we'll keep you informed.

Switching back to Nevada, most of the work appears to be focused on Long Canyon. Has there been any work undertaken on Sandman or Northumberland that was also picked up with the Fronteer package?

Yes, this is Grigore Simon. Most of the focus is correct to – is at Long Canyon. At Sandman, what we are doing, we are moving the project into the pre-scoping and scoping phase, so we will be spending a bit more time there. As far as Northumberland is concerned, we are evaluating options in terms of further exploration progress, but we really didn't spend a lot of time there last year. And this year, it's a pretty small program overall.

Given the work on Sandman, is it -- is there potential for it to be brought on stream before Long Canyon?

Right now, honestly, I don't see how that one would happen because Long Canyon, it's -- looks much more prospective. So we will -- in the portfolio context, we will be pushing Long Canyon faster than Sandman at this stage. But again, it doesn't mean that we are not going to move along Sandman. It's just that it's not going to move at the same pace.

Our next question from George Topping, Stifel, Nicolaus. George Topping - Stifel, Nicolaus & Co., Inc., Research Division: Boddington was a little bit worse than we were expecting. And it looks like the grades fell 10% from Q4. Can you talk about where you see grades and production for Boddington through the remainder of the year, please?

Yes, we do -- this is Gary again. George, we do see grades down from last year to this year, and that was built into our forecast for the full year production at Boddington. The challenge this past quarter was really mill throughput. We do a combination of some stockpiling there to ensure we get the good grades through the mill. But really, the issue this quarter was around an extended mill shut that went longer by 2 days than what we expected and the conveyor failure that we had with the motors. So don't expect that to continue. And actually, there's been quite an effort going on there, as Richard mentioned, in terms of the mill capacity work that's been done around the group. A lot of work has been done at Boddington to focus on making sure we get that whole mill production process up to speed, and we're really trying to push to make sure we can achieve what we believe is nameplate or maybe a little bit beyond here through the rest of this year. George Topping - Stifel, Nicolaus & Co., Inc., Research Division: All right. Are you looking at not having bounced back so far in Q2?

I'm sorry, a what spike? George Topping - Stifel, Nicolaus & Co., Inc., Research Division: Are you looking at Boddington production improving through the month of -- has it improved in April?

I'm sorry, yes. We look at Boddington's production without the mill shutdown in place getting back in line with what we'd expect for the full year. George Topping - Stifel, Nicolaus & Co., Inc., Research Division: All right, good. And then another question is on -- this is more -- this for financial, it's the dividends to noncontrolling shareholders. There's none in the Q1. Is one being made subsequent to the quarter, or was there none required to be paid?

No, George, this is Russ. Yes, those -- that line that you see reflected in the financials is largely the dividend paid out of Batu Hijau. We have not declared one. We generally do it annually and do it towards the end of the year, so you shouldn't expect to see something until probably the fourth quarter. George Topping - Stifel, Nicolaus & Co., Inc., Research Division: Right. This is the noncontrolling interest?

Yes, that's for the, effectively half of that project that we don't own. George Topping - Stifel, Nicolaus & Co., Inc., Research Division: Right, yes, okay. And then just while we're on Indonesia, if you could fill us in on the -- how the political risk is evolving there. Because I noticed that's one of the areas where you are considering to invest more.

Yes, I'll start. It's Richard. So I think the political risk in Indonesia -- we've been operating in Indonesia for quite some time. As you know, we've been going through a divestiture process over the last several years. And as a result of that, we have almost continuous interaction with both the local community, who have an interest in the current shares that have been divested, as well as an interest in the potential shares. The central government, who is the buyer at least at the moment for the 7%, and we hope that, that will close sometime in the next few months. I think as we see that 7% close, I think we will then be through the divestiture issues and then solidly into what does the rest of Indonesia look like. We think Indonesia continues to be prospective within our contracted work. We are continuing to explore it along, which we think has potential to be similar to Batu Hijau in terms of its output, but probably, twice as big and half the grade, so obviously dependent on economics. But we continue to look at that. Why? Because we believe that the political situation in Indonesia continues to support mining. We do have a contract of work, and the government has indicated that they would like to see certain forms or provisions of that change, including the potential for refining more copper product in Indonesia. And what I can tell you is that the one refinery that is available in Indonesia to process is full. So we continue to work with the government on what we're going to do next. If that's really what's going to happen, somebody's going to have to construct a refinery. So what I'd say is the dialogue with Indonesia continues to be a dialogue. But I'd say generally, it's been constructive. We have worked through the issues. We've been there quite some time. I think on the ground, we provide meaningful jobs and meaningful revenue to the government, and we continue to be cited as one of the most environmentally and, I think, financially, in terms of filing our tax returns and paying on time, of any mining company in Peru -- so I think -- or sorry, I meant in Indonesia. But you could also say that in Peru. So we continue to be positive, I think, about Indonesia. No question, we've got to keep an eye on what's happening there, and elections are going to be coming up there in the next couple years as well.

And George, just adding to Richard's comment, the additional investment we've contemplated on and off over the last decade is around a third SAG, so a mill expansion at the existing operation in Indonesia. And then just further on the exploration, we approved yesterday an unbudgeted request for $20 million for helicopter-supported drilling at Elang, which will give you an indication of our perspective on that risk profile.

At this time, I'd like to turn the call back over to Richard O'Brien, President and CEO, for closing comments.

Thanks, everybody, for taking some time Friday morning to attend our call. And if you have questions, I know John and his team would be more than willing to take them, and we look forward to seeing all of you and even some people who aren't on the call at our Investor Day. Thanks.

This concludes today's conference. You may disconnect at this time. Thank you for your participation.