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NEWMONT GOLD INCREASES OUTPUT AND LOWERS COSTS IN QUARTER

 NEWMONT GOLD INCREASES OUTPUT AND LOWERS COSTS IN QUARTER
 DENVER, April 29 /PRNewswire/ -- Newmont Gold Co. (NYSE: NGC) increased gold production by nearly 20,000 ounces in the first quarter of 1992 compared with the previous year's first quarter, at the same time the company reduced its cash cost of production by 8 percent to $191 an ounce -- one of the lowest cost levels among major producers.
 The company elected early adoption of FASB 106, resulting in a first quarter non-cash charge of $6.4 million, or 6 cents a share, after tax. This charge follows Newmont Gold's electing to implement, a year prior to when required, the accounting standard which requires that postretirement benefits, other than pensions, be accounted for on an accrual basis. This non-cash charge, and a 6 percent drop in the price of gold, reduced first quarter net income to $23.3 million, or 22 cents a share, compared with $34.3 million, or 33 cents a share, in the first quarter of 1991.
 Production in the first quarter of 1992 was 393,500 ounces, up 5 percent from the 373,700 ounces produced in the first quarter of 1991. The cash cost of production was reduced to $191 an ounce from $207 an ounce in the first quarter of 1991. The lower costs resulted primarily from lower general and administrative expenses as well as lower royalty costs. The price received for gold averaged $350 an ounce in the quarter, compared with $373 an ounce in the first quarter of 1991. Despite the decline in the price of gold, lower costs of production enabled Newmont Gold's cash margins to remain very high in the first quarter of 1992 at $159 per ounce as compared to $166 per ounce in the 1991 first quarter.
 In all, 34.5 million tons were mined in the first quarter, compared with 37.0 million tons mined in the first quarter of 1991.
 The company's five mills treated 3.4 million tons of ore and produced 272,400 ounces in the first quarter, compared with 3.2 million tons treated and 258,700 ounces produced in the first quarter of 1991.
 Leach operations resulted in 8.7 million tons placed on pads, and 121,100 ounces produced in the first quarter. This compares with 6.4 million tons placed and 115,000 ounces produced in the first quarter the previous year.
 Newmont Gold has the largest North American production of approximately 1.6 million ounces of gold annually. It is 90.1-percent-owned by Newmont Mining Corp. (NYSE: NEM).
 NEWMONT GOLD CO.
 Summary of Consolidated Income
 (Unaudited - in thousands, except per share)
 Three Months Ended
 March 31,
 1992 1991
 Sales $137,809 $139,310
 Income before cumulative effect
 of change in accounting principle $29,618 $34,219
 Cumulative effect of change in
 accounting principle (a) (6,356) ---
 Net income $23,262 $34,219
 Income per share:
 Before cumulative effect of
 change in accounting principle $0.28 $0.33
 Cumulative effect of change in
 accounting principle (a) (0.06) ---
 Net income $0.22 $0.33
 Average number of
 shares outstanding 104,875 104,875
 (a) No income tax benefit is associated with this charge for the adoption of accounting for postretirement benefits other than pensions in accordance with Statement of Financial Accounting Standards No. 106.
 -0- 4/29/92 R
 /CONTACT: James F. Hill of Newmont Gold, 303-837-5977/
 (NGC NEM) CO: Newmont Gold Co. ST: Colorado IN: MNG SU: ERN


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Publication:PR Newswire
Date:May 1, 1992
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