Good morning, and welcome to the Newmont Mining Second Quarter 2015 Earnings Conference Call. All lines will be on a listen-only mode until we open for questions and answers. 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 Meredith Bandy, Vice President Investor Relations. You may begin.

Thank you and good morning everyone. Welcome to Newmont's second quarter 2015 earnings conference call. Joining us on the call today are Gary Goldberg, President and Chief Executive Officer; Laurie Brlas, Chief Financial Officer and other member of our executive team will be available to answer questions at the end of the call. Turning to Slide 2, before to know any further, please take a moment to review the cautionary statement shown here or refer to our SEC filings which can be found on our website newmont.com. And now, I'll turn it over to Gary, on Slide 3.

Thanks Meredith, and thank you for joining us this morning. Newmont continued to deliver strong performance in the second quarter and I’d like to walk you through the highlights now. We reduced our injury rates, maintain steady gold production and lowered our all-in sustaining cost by 14$ per ounce compared to the prior year quarter. This performance resulted in our fifth consecutive quarter of positive free cash flow, a 32$ increase in adjusted EBITDA and a 17% increase in operating cash flow compared to 2014. We also announced the acquisition of Cripple Creek & Victor in Colorado and advance the Turf Vent Shaft and Long Canyon operations or mines rather Nevada and Merian in Suriname. Finally, we leveraged strong operating performance to pay down debt and return cash to shareholders. Turning to Slide 4 to look at our safety performance, I am pleased to report that we reduced our total injury rates by slightly more than 40% this quarter compared to last year. This constitutes Newmont’s lowest ever injury rate and reflects tremendous dedication by our team and significant approve improvement by our contractors. I particularly want to acknowledge our teams in Ghana and Suriname, who completed the entire quarter working without injury, proving that our goal of zero harm is achievable. This performance comes down to strong operating discipline, safe facilities and most importantly a sense of accountability for safety that runs throughout the entire workforce. Let’s turn to Slide 5 for other quarter highlights. Our strategy has three elements and we are making progress in all fronts. First, to improve the underlying business, we maintain steady gold production more than offsetting the impact of divestments and doubled our copper production. Our gold all-in sustaining costs were just over $900 per ounce, which represents a 14% improvement over the…

Thanks Gary and thanks everyone for joining us today. It was a strong quarter for Newmont and I am pleased with our performance. Turning to Slide 11, as Gary mentioned, we continue to see cost improvement across the portfolio. Our second quarter gold cost applicable to sales per ounce and gold all-in sustaining cost for ounce were both 14% favorable to the prior year. These improvements contributed to EBITDA expansion and our fifth consecutive quarter of positive free cash flow. Despite an 8% decline in our average realized gold price, the lower cost from operations led to continued strong financial results. Turning to Slide 12, during the second quarter, we generated more than $440 million in cash from continuing operations and increase of more than 17% from the year-ago quarter. Adjusted EBITDA was also up 32% from the prior year, due to higher grades and recoveries especially at Batu Hijau, improved oil prices and exchange rates and ongoing efficiency improvements. Consolidate free cash flow was $119 million during the second quarter including increased development capital spending at our projects such as Merian and Long Canyon. Year-to-date free cash flow now stands at $463 million, almost $400 million higher than the prior year period. We’ve reported adjusted net income of $131 million in the second quarter or $0.26 per share compared to a $101 million or $0.20 last year. Turning to Slide 13 for a review of that, adjusted new income excludes a $0.02 per share gain related to discontinued operation, $0.05 per share loss related to impairments and restructuring costs and $0.09 per share impairment of certain differed tax asset. After reconciling for these items, we reported adjusted net income of $131 million or $0.26 per share as I noted. The strong quarter operationally was also reflected in adjusted EBITDA…

Thanks, Laurie. I’ll shift gear now to cover our outlook, turning to Slide 17. We’re revising our production and cost guidance to reflect continued strong performance at our operations and the impact of building Long Canyon Phase 1, acquiring CC&V and divesting Waihi. We expect to produce between 4.7 million and 5.1 million ounces of gold in 2015, up slightly from our previously published range of 4.6 million to 4.9 million ounces. We also improved our 2015copper production guidance by about 10%, due to a better phase position at Batu Hijau as we’ve been able to make better progress on 50 watering than we planned. Our revised long term guidance calls for gold product between 5.2 million and 5.5 million ounces by 2017 and 9% increase from previous guidance. In North America, we expect gold production to increase over the three year period as we complete the Turf Vent Shaft, enter a period of lower stripping at Carlin and add production from CC&V and Long Canyon Phase 1. In Asia Pacific, we expect Batu Hijau to contribute steady gold and copper production from higher grade ore over the next three years. A planned expansion at Tanami if approved represents additional upside. In Africa, we expect product to decline over the next three years, primarily due to lower grades at Ahafo. The team is developing profitable expansion projects including an optimized Ahafo mill expansion to increase throughput and offset lower grade ore. And the Subika underground mine which would improve ore grade and add up to 200,000 ounces of production per year, while reducing overall unit costs. These expansions also represent potential upside. In South America, production is forecast to decline in 2015 and 2016 before rising in 2017, as new production at Merian offsets maturing operations at Yanacocha. We are…

Thank you. We will now begin the question-and-answer session. [Operator Instructions] And our first question is from Andrew Quail with Goldman Sachs. Your line is open.

Yeah, good morning, Gary and congratulations on a very solid quarter again. It’s a positive trends you got over 12 months definitely. Couple of questions, on the pair issues in Ghana, can you easily give us a split between a Akyem and Ahafo, obviously, Akyem is showing much lower cost in heading in the other way where Ahafo suppose you’ve said grades coming off?

Yeah, the power consumption in Ghana it’s about 60 megawatts in total with about 30 megawatts at each of those sites. And what we’ve done is put in the temporary additional power at Akyem and we’re finishing up by the end of this year some addition permanent capacity at Ahafo as we look at the potential to add mill capacity there and the potential for underground, we wanted to base the more permanent power there. We have since June and went back to running full capacity, while we continue to work with the government and look at different ways to address the power situation over the longer there. We’re now in good shape for continuing and sustaining our existing production base going forward.

Thank Gary. And then in mean on that - on your slide 26 which is very helpful. As far as when you talk about the reduced or the divine laybacks and reduced the full cost. Is that server it’s - have you already sort of plan that by specific mines or is that main and how many mines would that be resuming to it?

And what we’ve done Andrew and as we build our plans and this is something we introduced last year and continue to refine this year. We actually build our plans starting from a lower gold price and layer on, what would we start, what runs, what doesn’t. So we started at a $900 price and then continued looking at what comes in both with existing operation and projects. So we’ve got a pretty good idea where we’d go and where we’d focus and where the best value comes as we’d go the other direction and looking. It’s depending ones again how long we expect these thing to last.

And just a last one, maybe it associate Kalgoorlie. Obviously there’s been some noise around sort of direct stepping away there. Can you just give us an update what operationally have that - is that impact Newmont and how you see that asset going forward?

No, I think one other things that we completed in this past quarter, we took over and agreed a management agreement with Barrick and we’ve now taken over managing the operation on behalf of the joint venture. It’s still a 50-50 joint venture. We continue to do work and now with this change, we’re also looking at what we might do both in further bringing our systems and approaches in, but also looking at the exploration upside. So it’s something we continue to assess.

Thanks very much, Gary.

Thanks Andrew.

Our next question is from John Bridges with JPMC. Your line is open.

Thanks Gary, Laurie and everybody. Again congratulations on the results. I was just wondering with these expansion projects you’re talking about Tanami and Ahafo, what sort of gold price would you need to press the button on those two projects?

It varies on both on them. At Tanami, quite frankly because it’s - well both of them quite frankly are incremental expansions. We see prices that would support good double digit returns. It could below even a $1,000 per ounce. We’ll give more information as we assess those here in the third and the fourth quarter and bring them forward, but that’s where I see quite frankly both of those.

Okay. And then following on the layback question, and looking at your results from last quarter, your layback, your strip ratios are following most of the mines. Is that normal value variation or was there a degree of sort of adjusting to another price already in your numbers? And then I was in tread at - what was it - at Twin Creeks, the strip ratio there is much higher but is not showing up in the cash cost, I just wondered what was driving that?

Okay, I’ll take the first part on Carlin and Boddington in terms of strip ratio, because those are probably the two biggest drives of Carlin being the biggest. And I was just out there last week and have a pretty good handle on what’s going on. I think the big difference is then we’ve had material that was originally characterized this waste, it’s now become ore, so that’s a good thing in terms of mineral model but it also results in lower stripping. So what we’d expected to be stripping is waste is now ore. That ore has a longer haul when and you’ve been out there, so taking it from the Northern pit down to where the mill is does require a longer haul, so that’s taking up the truck capacity and lower stripping. At Boddington, it’s been changes to the mine plan that we implemented earlier this year and really the shape and that’s allowed us not just for this year but going forward to reduce some of the stripping. Twin Creeks, the question there was - now Chris Robison is going to address Twin Creeks’ question.

Yeah John, I think it follows on with Gary commented on about Carlin in the longer hauls. The hauls right now at Twin are actually, well we continue to strip at a pretty high pace there. They are high in the mine, so pretty short hauls actually and we’ve done redesigns on where our dumps are and the hauls that of even shorten that more, so that’s probably the key to cause not up significantly as stripping continues.

Well, okay. And then maybe the longevity of how long you could delay some other stripping, how much flexibility you built into your mine plans?

Yeah, we’re really not delaying the stripping. This is both we modified the mine plan at Boddington and at Carlin it’s really a more a matter of the switch from ore to waste, so we’d be back into the normal sort of stripping going forward.

Okay, got it. Thanks a lot and well done guys.

Thank you, John.

Our next question is from Stephen Walker with RBC. Your line is open.

Thank you very much. Thank you, Gary and team. Just a couple of questions Gary, if you could in previous calls there’s been more granular discussion on which projects, which smelting, copper smelting projects in Indonesia that you could be considering investing in as part of renewal process for the copper concentrate export progress here. I know it comes up for renewal in September, could you give us some color on your level of confidence that you get some news on that renewal of the copper concentrate export permit?

Sure, thanks Steven. I think couple of things. Obviously, we continued to watch and see how Freeport progresses with their discussions because they are - I know the first cab of the rank with their permit do here this month are as due as you said in September. I met with a number of government officials earlier this year and more recently met with the Minister of Mines and Energy as he was here in the U.S. to just talk about the progress and where we are both in terms of the modifications to a contracted work and the permit extension. And we do continue to discuss with several parties the potential of participating in a smelter and supporting the country’s policy of having in country processing. Those were at different stages with different parties and I am not really have liberty to get into the details on those other than we continue to progress that. I do think there is desire in country that’s continued to see the operations run as we work together towards a solution. Now I have encouraged as I was when I visited in March and that resulted in getting our extension in March. We’ve got work to do and they are just coming out of a holiday period here primarily through the month of July and we’re looking to get reengaged in detail on these discussions in August with the government.

Great, just as follow-up on that too. You are going to be benefitting from the Phase 6 high grade, when do you have to make a decision on the pre-strip for the Phase 7 or and what are the metrics vis-à-vis gold and copper prices that makes at a go or no go or is it a forgoing conclusion that it is a go at this Phase 7 strip at this stage?

No, Stephen, a good question, it’s one of the things in why we are encouraging getting resolution on the contractor work, so we know that we have the certainty in terms of how we’re going to look out in the future for development of Phase 7. Phase 7, we really get into larger spending for striping in particular early next year, so we’re really targeting through the end of this year, we’ll look at it. The same way we do with all of our different options at different price scenarios to see what it make sense, how it make sense to bring it forward, how it make sense to finance that particular investment because it’s about five years of striping, we’re doing work with the team there to look at ways to maybe reduce that a bit and improve the cost profile and how we can drive things. We’ve just got the full potential program rolled out there and we’re going to see how we can improve our cost position there as well. All that we want to factor in as we make the decision on whether and how to proceed with Phase 7.

Alright, I assume that’s not in the capital guidance, that’s been given looking forward?

That’s not in the current capital guidance.

If I can change gears a little bit at Merian you are using an EPCM contractor G Corp, this is unusual when we look at what Newmont has done in the past, you’ve not - you’ve always done that sort of internally, can you discuss a little bit how that process is going and whether you think that you could be looking at using contractors or EPCM contractors of this nature going forward?

Yeah, no, good point. We have - sometimes we’ve done it internally. For larger projects we’ve actually done it with third parties, you the back goes in the flares and that type. G Mining has had a good history of building projects of this scale and particular in Suriname, Luis [ph] has done a good job there and continues to do a good job for us, so it’s a different model and it’s one that we believe allows us to build projects affectively safely and at a lower cost than what we’ve been seeing through some of the other model. So we’re giving it a bit of a try here how it might apply in other place. I think once you start to get much larger project in this, that model may not fit, but I think for the most of the projects we have in our project pipeline this sort of model is something that makes good sense. So that’s why we’re given in a try and as I said we’re seeing good progress there. We’re at 25% project completion year-to-date and that’s progressing very well on the ground.

Great, and just one last question Laurie, if I might ask, both gold and copper revenues were lower in the quarter than the average price in the quarter, is that just a timing issue on gold and copper concentrate sales?

Definitely on the copper concentrate sale there is a bit of a timing issue. On a year-to-date basis I think we are pretty solid on gold and we see continuing to hit the numbers for the rest of the year. Copper will get back from that timing gap.

Or it should improve into the third into the third quarter just on a PP or prior period pricing adjustments?

Yes.

Yes, that CCR feeds well affect that and we also have mark-to-market adjustments more still again on the copper and gold.

Thank you, Gary. Thank you, Laurie.

Thanks Stephen.

[Operator Instructions] Our next question is from Jorge Beristain with Deutsche Bank. Your line is open.

Hey good morning, everybody, Jorge Beristain of DB. I guess my first question is maybe for Laurie, just more of a technical accounting question. Your year-end ‘14 reserves stood at about 82 million ounces and 17 years of mine life, but that’s based on $1,300 gold. So I was wondering if you could provide any kind of sensitivity around where your reserves could go at current spot of around 1,100 and if you believe that from an accounting point of view, you are being sufficiently conservative enough using that $1,300 gold price in light of the recent move?

Yeah, we will certainly evaluate that as we get towards the year-end. And as you know, we have to be at or below the three year trailing average by SEC requirement. We’ve historically been below that. But given what we’re seeing, you could see some kind of a change and we provided the sensitivity on that in the past what would happen, but we also in those sensitivities assume consistent are the dollar that what we saw a year ago. So I think you’d see some of that adjustment would be medicated. Gary, you want to add on that?

No, I think we have in those reserve calculations, we left the Aussie dollar at parity dollar for dollar and the oil was at a $100 per barrel. So as we - we assess reserve reporting at the end of the year and making a potential reduction in that reserve price, we would include also those changes in the Aussie the oil price and also the improvements we’ve seen in our operating cost throughout the business.

And that wouldn’t have a direct - an adjustment like that would not have a direct impact or impairment on the balance sheet. What you might see if we reduced our reserves would be a bit higher depreciation and amortization next year as that would imply some shorter mines but there been a direct impairment.

Got it, thank you. And just Gary, my second question is a bit more of a strategic nature, but seeing last week’s aggressive pullback in some of the gold equities and it does seem like we’re seeing some sort of investor fatigue or and/or capitulation toward gold and by extension the gold equities. Could you comment us to what you are hearing at the board level not only at the Newmont board or maybe within the industry as to what the industries planning to do in order to stay relevant as an asset class toward institutional investors which require certain thresholds for market cap and liquidity and just in other in short is M&A potentially back on the burner in 2016 if we continue see gold prices say below a 1,100?

Yeah, I’ll make it clear that M&A isn’t that top end of our priority. We’re really focused on running our existing business well and delivering results. I think as it’s been highlighted continuing to deliver the results that we say we’re going to, continuing to look at ways to improve the businesses, the way to earn the creditability of shareholders. As an industry, I think we’ve got different participants going after it in different ways. I think we’ll see some that will do well and perform well through this price environment. We’ve got others that I am sure will get challenged just by the nature of how they going to cross and gone after their cost, improvement and efficiencies. We’ve really focused over the last couple of year with our board and what can be done to sustainably improve and efficiencies not just do something that’s flushing the pan for a year or two. And I think that’s just as important from a shareholder standpoint look at it. So our discussions with shareholders, our discussion with our board and we just completed those discussions here recently with our most recent board meeting. We’re really focused on making sure we continue to deliver, stay within our strategy, make sure the foundation is going well, make sure we’ve got good financial capacity, keep an eye on the balance sheet, keep an eye shareholder returns as you saw with a divided that we believe we’re positioned well to be able to pay that dividend even though it fell below our current guideline and those of the sorts of things that we’ve been discussing and focusing on it. I think in terms of the market, I’ve always been saying keep an eye on both what’s happening with ETS and what’s happening in China. And…

Okay, great, thank you. And I just wanted to reemphasis, when I said M&A I really meant consolidation in terms of sorted mergers of equals, but I’ll leave it there. Thanks very much.

Thanks Jorge.

Our next question is from David Haughton with CIBC. Your line is open.

Yes, good morning, Gary, Laurie. I am David Haughton from CIBC. Got a couple of operational questions for you, in your commentary Gary, you’d mentioned the watering programs at Batu Hijau have a potential full better grades going forward what nearly it down at the bottom of the higher grade portion that beating the dry season. Does the watering have a material improvement beyond the second and third quarter?

Yeah, I think as we looked at it and we have to see what happens with the rain as you point out. But we’re about 50 meters below where we expected to be in terms of water level in the pit and it’s spend because it’s been drier but we also installed an additional the watering pipeline to make sure if rain came more than expected we’re in a better position. So that’s all helped. That could help and that’s one of the things, we do our plans for ‘16 and ‘17 because we would have planned in ‘16 a period where we actually came out of the pit bottom and it could position us better, but that’s part of what well assess when we do our ‘16 plan.

Okay, and also as a throughput at Batu Hijau has been picking up quite well in the first and second quarter this year. Should we expect it to be at those sort of levels going forward?

I think it’s a combination, as we’re in the lower part of the ore body, the higher grade - higher grade is also softer ore and higher recovery. So all those go together to really result in the better results.

Okay, just switching continents to Ahafo continue to get good cash cost results there but your guidance is quite a bit hard than what we’ve seen in the first half of this year. Are you expecting some higher costs in the second half of the year with potentially all graded higher strip or some other factors?

The combination of two things, one would be grade is expected to drop in the second half of the year and we also expect to see some higher sustaining capital spend that will occur in the second half of the year.

Okay, and then the last one looking at Tanami exploration, do any of those exploration results, have any of them being factored into your thoughts on the expansion?

No, at this stage we are basing the expansion completely on what we have in our reserve base not on the resource or on the rest of what I have just talked about.

Okay, but if you are going to have additional infrastructure on presumably better mobility of fleet et cetera that that could put you in good stead for accessing potentially these new portions of the ore body if they pan out?

No, exactly, we’ve got existing infrastructure but also have potential options. When you recall, we had a shaft option for continuing to expand production there. That could become one that we consider and then there be other potential incremental expansions at the mill we could do depending on what we’d find. But right now, I want to keep the focus keep it stepwise on what’s the most logical mix that based on what we know.

Okay, thank you Gary.

Thanks David.

Our final question is from Michael Dudas with Sterne Agee. Your line is open.

Yes, thank you and good morning, Gary, Laurie and team. First question made for Laurie, if you were to looking at 2017 cost guidance of 900 to 1,000, if you’re to mark-to-market energy in $4, is that what a bit of the range would be low end, high end or could that be very helpful of we have these type of metrics over the next couple of years?

We’ve provided those sensitivities in the past and those are included in our materials that certainly we’ve used. The midpoint of our guidance would reflect the energy an $8 assumptions that we’ve got right now.

Okay, fair enough. Secondly, when you mentioned, Gary mentioned in his prepared remarks about or maybe you did about net debt-to-EBITDA ratio of target of one, could you just characterize how sensitive that is relative to gold price additional acquisitions, progress on the development project, is that a hard target, is there a timeframe that’s included there?

No, it’s a general guideline and it’s not going to be sensitive to development essentially because that doesn’t affect EBITDA, we’ve got that factored in. It’s really the EBITDA will move, I want to make the point that it’s at a $1,200 gold because our EBITDA will obviously more if the gold price changes. And so if we’re at a one, that’s extremely conservative, if we’re at one at $1,200 and so it fells up a little bit at $1,100 number, but we’re still at a very confident investment grade position.

And I wanted to flush it out, thank you. My final question, Gary, I know you talked about some of the labor issues in Africa and in Australia, what - any sense in North America, is there attraction of labor, productivity, any issues on that front that coming ahead over the next 12 to 18 months?

No, no real issues in North America, Peru and quite frankly Australia, we continue to see better labor availability which is evident in the much over turnover rates we’re seeing in our operations in West half. So I think that’s a key point one other things and I mentioned we just had the board in. We spent quite a bit of time with the board talking about talent, talking about succession and what we do to make sure we have a good strong talent pipeline throughout the business, so not just at headquarters but how does that look out into the operations, how does it look from the finance side back in across the region. So it’s one that we spend a lot of time on and it’s one we feel it’s important for us as we try to separate ourselves from the rest of the group.

Excellent, I appreciate that. Thank you, good luck, guys.

Thanks Michael.

And we do have one final question. Our final question is from Anita Soni with Credit Suisse. Your line is open.

Hi. Just one question on Achim, I think this group what there was a little bit lighter than prior quarter, could you just elaborate on that?

Yeah, what we had Anita in the first quarter in particular but second quarter for the first two months April and May we had lower throughput as we run the power rationing before we got the rest of the gen sets the temporary gen sets in. So from June we are back at full capacity and that was really the big driver on the difference in mill throughput and we’d expect that as I mentioned, now that we have the additional power capacity to be achieving the more normal levels going forward.

So the full capacity for the reminder of the year at this point?

That’s correct.

Alright, thank you very much.

Thanks Anita.

Alright, we have no further question. I would now turn the meeting over back to Mr. Gary Goldberg.

Thanks operator and thanks again everyone for joining our second quarter earnings call. Our team continues to drive stronger performance across the portfolio and the sector. We’ve remained committed to continually improving the business by making our operation safer and more efficient and to building a longer life, lower cost asset portfolio that thrives in all cycles. Our ultimate goal is to create the value in need to fund profitable growth, pay down debt and most importantly generate cash for our shareholders. Thank you for your time and have a safe day.

Thank you for participating in today’s conference. All lines may disconnect at this time.