Newmont Gold sales record for quarter

North America’s largest gold producer Newmont Gold (NYSE) had a record quarter with gold sales from its Australian and Carlin, Nev., mining operations of 395,700 oz. That represents a 46% increase on the 271,600 oz. which Newmont Gold sold in the first three months of 1989.

The first-quarter sales were accompanied by a healthy increase in the company’s first-quarter earnings which climbed to US$42.5 million or 41 cents a share from US$16.5 million or 16 cents a share during the equivalent period last year.

First-quarter revenues also increased to US$160.3 million from US$108.1 million in the first three months of 1989.

Production at Newmont’s Carlin, Nev., operations increased to 272,500 oz. in the first three months of 1990 from 168,400 oz. in the equivalent 1989 period. Cash cost per oz. decreased to US$224 per oz. from US$254 per oz. last year.

Newmont attributes the production increase to the introduction at Carlin of mill number four in June, 1989.

With five mills now up and running, the company treated 3.7 million tons of ore in the first quarter, compared with 2.5 million tons in the first quarter of 1989.

Newmont Gold is a 90.1% owned subsidiary of Colorado- based Newmont Mining (NYSE). Newmont Gold (NYSE)* $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenues $160,351 $108,137 Net earnings 42,500 16,528

per share 0.41 0.16 *US dollars

— 30 —

File: KERR

May 11 dw – Kerr Addison/annual

Government policies threaten productivity: Kerr president

Current government practices are having a negative impact on the productivity of Canadian mines, the president of Kerr Addison Mines (TSE) said at the company’s annual meeting in Toronto.

“The present policies of high interest and exchange rates in this country, together with increases in government-mandated costs, are threatening to wipe out these productivity gains,” Ian Bayer said.

“In fact, there are growing signs these policies may be doing serious permanent damage to the goods- producing sector of our economy.”

Kerr, part of the Noranda group of companies, turned a profit of $12.6 million (72 cents per share) last year, compared with $10.5 million (60 cents per share) in 1988. The former gold producer plays the role of a holding company, its principal operating company being 50.4% owned Minnova (TSE).

During the first quarter of this year, Kerr reported a net profit of $8.5 million (49 cents per share) compared with $9.7 million (55 cents per share) for the same period in 1989.

“While the average price for gold and the level of the Canadian dollar were relatively unchanged (during the quarter), prices for copper and zinc were more than 20% lower than those of the comparative quarter in 1989,” Bayer said.

“However, copper and zinc markets remain strong by historical comparisons, reflecting low inventories, concentrate and metal supply disruptions and good demand in central Europe.”

Bayer cautioned that uncertainty over the strength of business conditions for the last six months of 1990 could lead to weakening prices. “The sharp fall in gold prices in late March has left the markets for precious metals in an extremely cautious state,” he said.

A 44% owned affiliate of Kerr, RFC Resources Finance (TSE), recently completed a positive feasibility study on a former producing property, the Pend Oreille lead-zinc mine project, in Washington State. Bayer said RFC is reviewing its financing options.

In addition to its mining holdings, Kerr has a 34.2% interest in oil and gas producer Anderson Exploration, which Bayer said had record levels of production volumes, cash flow and earnings for 1989. Kerr Addison Mines (TSE) $000s except per-share items Quarter ended Mar. 31 1990 1989 Income $35,183 $22,681 Net earnings 8,541 9,702

per share 0.49 0.55