Summary of NEWMONT MINING CORP /DE/

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION (dollars in millions, except per share, per ounce and per pound amounts).

The following discussion provides information that management believes is relevant to an assessment and understanding of the consolidated financial condition and results of operations of Newmont Mining Corporation and its subsidiaries (collectively, "Newmont," the "Company," "our" and "we"). References to "A$" refer to Australian currency, "C$" to Canadian currency, "IDR" to Indonesian currency, "NZ$" to New Zealand currency and "$" to United States currency.
This item should be read in conjunction with our interim unaudited Condensed Consolidated Financial Statements and the notes thereto included in this quarterly report. Additionally, the following discussion and analysis should be read in conjunction with Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations and the consolidated financial statements included in Item 8 of our Form 8-K for the year ended December 31, 2008 filed on September 15, 2009.
Selected Financial and Operating Results

                                           Three Months Ended              Nine Months Ended
                                             September 30,                   September 30,
                                          2009            2008            2009           2008
Revenues                               $    2,049       $   1,371      $    5,187      $   4,799
Income from continuing operations      $      645       $     215      $    1,242      $   1,101
Net income                             $      645       $     222      $    1,228      $   1,118
Net income attributable to Newmont
stockholders                           $      388       $     191      $      739      $     827

Per common share, basic
Income from continuing operations
attributable to Newmont
stockholders                           $     0.79       $    0.40      $     1.54      $    1.78
Net income attributable to Newmont
stockholders                           $     0.79       $    0.42      $     1.52      $    1.82

Consolidated gold ounces sold
(thousands) (1)                             1,715           1,485           4,734          4,569
Consolidated copper pounds sold
(millions)                                    141              44             342            201

Average price received, net (2)
Gold (per ounce)                       $      964       $     865      $      930      $     900
Copper (per pound)                     $     2.80       $    2.01      $     2.30      $    3.50

Costs applicable to sales (3)
Gold (per ounce)                       $      404       $     467      $      419      $     433
Copper (per pound)                     $     0.50       $    1.98      $     0.63      $    1.70

(1) Includes incremental start-up ounces of nil and 1 in the three and nine months ended September 30, 2009 and 3 and 20 in the three and nine months ended September 30, 2008, respectively.

(2) After treatment and refining charges.

(3) Excludes Amortization and Accretion.

Consolidated Financial Results
Net income attributable to Newmont stockholders for the third quarter of 2009 was $388, or $0.79 per share, compared to $191, or $0.42 per share in 2008. Results for the third quarter of 2009 compared to 2008 were impacted by increased gold and copper sales volumes, higher realized gold and copper prices and lower costs. Net income attributable to Newmont stockholders for the first nine months of 2009 was $739, or $1.52 per share, compared to $827, or $1.82 per share in 2008. Results for the first nine months of 2009 compared to 2008 were impacted by higher gold and copper sales volumes, higher realized gold prices and lower costs, partially offset by lower realized copper prices. The Net income attributable to Newmont stockholders per share for the three and nine months ended September 30, 2009, compared to the same periods for 2008, reflect higher average shares outstanding due to the issuance of 34,500,000 shares in February 2009.

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Sales - gold, net for the third quarter of 2009 increased $372 compared to the third quarter of 2008 as a result of a 233,000 increase in consolidated gold ounces sold and a $99 per ounce increase in the average realized price after treatment and refining charges. Sales - gold, net for the first nine months of 2009 increased $307 compared to the first nine months of 2008 as a result of a 184,000 increase in consolidated gold ounces sold and a $30 per ounce increase in the average price realized after treatment and refining charges. The following analysis summarizes the change in consolidated gold sales revenue:

                                           Three Months Ended              Nine Months Ended
                                             September 30,                   September 30,
                                          2009            2008            2009           2008
Consolidated gold sales:
Gross                                  $    1,660       $   1,282      $    4,421      $   4,106
Less: Treatment and refining
charges                                        (7 )            (1 )           (20 )          (12 )

Net                                    $    1,653       $   1,281      $    4,401      $   4,094


Consolidated gold ounces sold
(thousands):
Gross                                       1,715           1,485           4,734          4,569
Less: Incremental start-up sales                -              (3 )            (1 )          (20 )

Net                                         1,715           1,482           4,733          4,549


Average realized price (per ounce):
Before treatment and refining
charges                                $      968       $     866      $      934      $     903
After treatment and refining
charges                                $      964       $     865      $      930      $     900

The change in consolidated gold sales is due to:

                                                         Three Months Ended        Nine Months Ended
                                                           September 30,             September 30,
                                                           2009 vs. 2008             2009 vs. 2008
Increase in consolidated ounces sold                    $                203      $               166
Increase in average realized gold price                                  175                      149
Increase in treatment and refining charges                                (6 )                     (8 )

                                                        $                372      $               307

Sales - copper, net for the third quarter of 2009 increased $306 compared to the third quarter of 2008 due to higher sales volume and higher realized prices. Sales - copper, net for the first nine months of 2009 increased $81 compared to the first nine months of 2008 due to higher sales volume, partially offset by lower realized prices. The following analysis summarizes the change in consolidated copper sales revenue:

                                           Three Months Ended              Nine Months Ended
                                             September 30,                   September 30,
                                          2009            2008            2009           2008
Consolidated copper sales:
Gross before provisional pricing       $      386       $     151      $      763      $     726
Provisional pricing mark-to-market
gain (loss)                                    48             (52 )           112             38

Gross after provisional pricing               434              99             875            764
Less: Treatment and refining
charges                                       (38 )            (9 )           (89 )          (59 )

Net                                    $      396       $      90      $      786      $     705


Consolidated copper pounds sold
(millions)                                    141              44             342            201

Average price realized (per pound):
Gross before provisional pricing       $     2.73       $    3.39      $     2.23      $    3.61
Provisional pricing mark-to-market
gain (loss)                                  0.34           (1.18 )          0.33           0.19

Gross after provisional pricing              3.07            2.21            2.56           3.80
Less: Treatment and refining
charges                                     (0.27 )         (0.20 )         (0.26 )        (0.30 )

Net                                    $     2.80       $    2.01      $     2.30      $    3.50

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The change in consolidated copper sales is due to:

                                                 Three Months Ended        Nine Months Ended
                                                   September 30,             September 30,
                                                   2009 vs. 2008             2009 vs. 2008
Increase in consolidated pounds sold            $                214      $               537
Increase (decrease) in average realized
copper price                                                     121                     (426 )
Increase in treatment and refining charges                       (29 )                    (30 )

                                                $                306      $                81

The following is a summary of net gold and copper sales:

                                   Three Months Ended          Nine Months Ended
                                      September 30,              September 30,
                                    2009          2008          2009         2008
           Gold
           North America:
           Nevada                $      481      $   471     $    1,321     $ 1,457
           La Herradura                  23           19             75          64

                                        504          490          1,396       1,521

           South America:
           Yanacocha                    535          378          1,451       1,265

           Asia Pacific:
           Jundee                       103           94            293         282
           Tanami                        61           75            220         249
           Kalgoorlie                    91           69            223         189
           Waihi                         27           35             78          95
           Batu Hijau                   201           23            358         171

                                        483          296          1,172         986

           Africa:
           Ahafo                        131          117            382         321

           Corporate and other            -            -              -           1

                                 $    1,653      $ 1,281     $    4,401     $ 4,094


           Copper
           Asia Pacific:
           Batu Hijau            $      396      $    90     $      786     $   705

Costs applicable to sales decreased in the third quarter and first nine months of 2009 from 2008 as detailed in the table below. The decrease in the third quarter and first nine months of 2009 is due to lower waste tons mined and lower diesel prices, partially offset by increased gold and copper sales volumes. Amortization increased in the third quarter and first nine months of 2009 compared to 2008, due to increased gold and copper sales volumes as detailed in the table below. We expect Amortization expense in 2009 to be approximately $740 to $760.

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The following is a summary of Costs applicable to sales and Amortization:

                                     Costs Applicable to Sales                                          Amortization
                          Three Months Ended             Nine Months Ended            Three Months Ended             Nine Months Ended
                             September 30,                 September 30,                 September 30,                 September 30,
                         2009            2008            2009          2008          2009            2008           2009           2008
Gold
North America:
Nevada                 $     273       $     271      $      764      $   724      $      69       $      65      $     183       $   175
Hope Bay                       -               -               -            -              3               -              9             -
La Herradura                   8               9              30           27              2               2              7             6

                             281             280             794          751             74              67            199           181

South America:
Yanacocha                    163             159             488          488             43              43            128           131

Asia Pacific:
Jundee                        33              44             103          126             12               9             33            26
Tanami                        45              55             146          162             10              10             32            27
Kalgoorlie                    60              63             151          171              5               4             11            12
Waihi                         14              16              38           45              5              10             18            24
Batu Hijau                    37              20              88           76             10               4             23            15

                             189             198             526          580             42              37            117           104

Africa:
Ahafo                         61              55             175          150             17              16             51            47

                             694             692           1,983        1,969            176             163            495           463


Copper
Asia Pacific:
Batu Hijau                    71              88             217          342             18              16             55            67


Other
Other North America            -               -               -            -              -               1              -             1
Other Asia Pacific             -               -               -            -              1               -              2             2
Corporate and Other            -               -               -            -              4               6             14            15

                               -               -               -            -              5               7             16            18

                       $     765       $     780      $    2,200      $ 2,311      $     199       $     186      $     566       $   548

Exploration expense decreased $2 and $7 for the third quarter and first nine months of 2009 compared to 2008, respectively. We expect 2009 Exploration expense to be approximately $165 to $175.
Advanced projects, research and development expense for the third quarter and first nine months of 2009 and 2008 is summarized as follows:

                                         Three Months Ended          Nine Months Ended
                                           September 30,               September 30,
                                        2009             2008        2009           2008
     Boddington                       $      11         $    1     $      24       $    3
     Hope Bay                                 2             16            18           29
     Technical and project services           6              5            18           15
     Corporate                                3              3            10           10
     Nevada underground                       1              1             9            1
     Akyem                                    2              2             5            5
     Fort a la Corne JV                       -              6             1           19
     Other                                    2             10            15           31

                                      $      27         $   44     $     100       $  113

We expect 2009 Advanced projects, research and development expenses to be approximately $155 to $165.
General and administrative expenses increased $2 and $15 for the third quarter and first nine months of 2009 compared to 2008, respectively, due to higher benefits, mainly pension and other post retirement costs. We expect 2009 General and administrative expenses to be approximately $150 to $160.

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Other expense, net for the third quarter and first nine months of 2009 and 2008 is summarized as follows:

                                         Three Months Ended          Nine Months Ended
                                           September 30,               September 30,
                                        2009             2008        2009           2008
     Boddington acquisition costs     $       -         $    -     $      67       $    -
     Regional administration                 14             10            40           31
     Community development                   12             15            33           47
     Western Australia power plant           18              2            27           15
     Peruvian royalty                         8              4            19           15
     Workforce reduction                      -              -            15            -
     Batu Hijau divestiture                   3              2             9            7
     Accretion, non-operating                 3              2             9            7
     World Gold Council dues                  2              3             8            8
     Reclamation estimate revisions           -             13             -           74
     Pension settlement loss                  -              1             -           12
     Provision for bad debts                  -             11             -           11
     Other                                    7              6            32           22

                                      $      67         $   69     $     259       $  249

In connection with the acquisition of the remaining interest in Boddington, we incurred costs of $67, including Australian stamp duties, for the nine months ended September 30, 2009. Community development and regional administration expenses relate to our social responsibility, external and government relations, and regional office costs which are not a direct cost of mine production. Workforce reduction expense includes costs related to global workforce reduction that impacted approximately 3% of our world wide workforce.
Other income, net for the third quarter and first nine months of 2009 and 2008 is summarized as follows:

                                           Three Months Ended                Nine Months Ended
                                              September 30,                    September 30,
                                          2009             2008            2009             2008
Canadian Oil Sands Trust income        $        7       $       36      $       16       $       91
Refinery income                                 9                2              13                2
Interest income                                 2                7              11               24
Gain on sale of investments, net                2               19               2               29
Foreign currency exchange gains
(losses), net                                   2               (7 )             -              (20 )
Gain on sale of exploration
property                                        -               32               -               32
Income from development projects,
net                                             -                3               -               12
(Loss) gain on ineffective portion
of derivative instruments, net                 (1 )              3              (5 )              5
Impairment of marketable securities             -              (34 )            (6 )            (90 )
Other                                           4                5              12               15

                                       $       25       $       66      $       43       $      100

Canadian Oil Sands Trust income decreased $29 and $75 in the third quarter and first nine months of 2009, respectively, compared to the same periods of 2008 due to reduced distributions related to a significant decrease in oil prices. The decrease in interest income is a result of a lower global interest rate environment. Gain on sale of investments, net in 2008 was attributable to the sale of marketable equity securities. During the first nine months of 2009, we recognized impairments of marketable securities of $2 for Shore Gold, Inc. and $4 for other marketable securities. During the third quarter of 2008, we recognized impairments of marketable securities of $26 for Shore Gold Inc. and $8 for other marketable securities, resulting in total impairments for the first nine months of 2008 of $58 for Shore Gold Inc., $13 for Gabriel Resources Ltd. and $19 for other marketable securities.
Interest expense, net decreased by $25 and $33 for the third quarter and first nine months of 2009, respectively, compared to the same periods in 2008 mainly due to higher capitalized interest, partially offset by additional interest on the convertible senior notes. Capitalized interest increased $35 and $50 for the third quarter and first nine months of 2009, respectively, compared to the same periods in 2008 primarily due to construction of the Boddington project. We expect 2009 Interest expense, net to be approximately $100 to $110.

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Income tax expense during the third quarter of 2009 was $253 compared to $6 during the third quarter of 2008. The increase primarily relates to (i) the increase in pre-tax income, and (ii) the reduction in income taxes in 2008 resulting from revised estimates of reserves for uncertain income tax positions. Income tax expense during the first nine months of 2009 was $494 compared to $193 during the first nine months of 2008. The increase primarily relates to
(i) the increase in pre-tax income, (ii) the reduction in income taxes in 2008 resulting from revised estimates of uncertain income tax positions, and
(iii) the reduction in income taxes in 2008 realized from the conversion of one of the Company's non-US subsidiaries to a partnership for U.S. income tax purposes which gave rise to a significant capital loss allowing the Company to recover income taxes paid on prior years capital gains. In addition to the non-recurring items discussed above, the effective tax rates in the third quarter and for the first nine months of 2009 and 2008 are different from the United States statutory rate of 35%, primarily due to
(i) U.S. percentage depletion, and (ii) the effect of different income tax rates in countries where earnings are indefinitely reinvested. For a complete discussion of the factors that influence our effective tax rate, see Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations in Newmont's Form 8-K for the year ended December 31, 2008, filed September 15, 2009. We expect the 2009 income tax rate to be approximately 28% to 30%, assuming an average gold price of $900 per ounce. Net income attributable to noncontrolling interests increased $226 and $198 in the third quarter and the first nine months of 2009, respectively, as a result of increased earnings at Yanacocha and Batu Hijau. Income (loss) from discontinued operations was a follows: