Slide 1: Q3 2016 Results
Q3 2016 Results 27 October 2016
Slide 2: Cautionary statement
Cautionary statement This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbor created by such sections a
Slide 3: Continuing to improve performance and portfolio
Continuing to improve performance and portfolio 12% reduction in total injury rates from prior year quarter Improve the $925/oz AISC1 remains within guidance underlying business 1.25 Moz of attributable gold production up 3% from prior year quarter Merian reached commercial production safely, on tim
Slide 4: Sustainability performance supports long-term value
Sustainability performance supports long-term value Injury rates (total recordable injuries per 200,000 hours worked) 0.7 0.6 0.65 0.5 Down ~54% since 2012 0.4 0.47 0.39 0.3 0.32 0.30 0.2 2012A 2013A 2014A 2015A 2016 YTD • Overall sustainability • Health and safety • Climate strategy Mining industry
Slide 5: Merian delivered on schedule, $150M under budget
Merian delivered on schedule, $150M under budget • Optimized approach improves returns and risk profile • Achieved commercial production on schedule and $150M below budget • Expected to deliver more than a decade of profitable production First gold pour at Merian 27 October 2016 Newmont Mining Corpo
Slide 6: Long Canyon to reach commercial production in 2016
Long Canyon to reach commercial production in 2016 • Optimized approach improves returns and payback period • Expected to reach commercial production ahead of schedule • High grade oxide deposit with mineralization open in all directions Mining at Long Canyon 27 October 2016 Newmont Mining Corporati
Slide 7: Improving underlying business and outlook
Improving underlying business and outlook • YTD gold production of 3.6 Moz – on track to meet guidance of 4.8 – 5.0Moz • YTD AISC of $910/oz – on track to meet guidance of $870 – $930/oz • YTD CapEx of $832M – on track to meet guidance of $970 – $1,150M Gold all-in sustaining costs ($/oz) – without
Slide 8: All projects provide more than 15% IRR
All projects provide more than 15% IRR Project Capital ($M) Cost (AISC/oz) Gold (Koz/yr) First production Insert picture of CC&V Merian (75%) ~$525 $650 – $750 300 – 375 Koz October 2016 Long Canyon $250 – $300 $500 – $600 100 – 150 Koz Q4 2016 Tanami expansion $100 – $120 $700 – $750 ~ 80 Koz Mid-2
Slide 9: PTNNT sale proceeding on course
PTNNT sale proceeding on course • Transaction expected to close in Q4 • Aligns with strategic goals; monetizes cash flow • Total consideration of $1.3B = $920M gross cash proceeds + $403M contingent payments 5 • Post-close position – 92% of reserve base is gold Batu Hijau 27 October 2016 Newmont Min
Slide 10: Strong Q3 adjusted net income
Strong Q3 adjusted net income GAAP to adjusted net income ($/share)6 $0.03 $1.08 $0.03 $0.32 $0.38 ($0.67) $0.04 ($0.13) Net loss Holt property Batu Hijau Loss on Net income La Quinua Impairments, Adjusted net attributable royalty Operations classification from leach pad restructuring income to NEM
Slide 11: Exceptional financial performance
Exceptional financial performance Financial metric Q3 2016 Q3 2015 Change Revenue ($M) $1,791 $1,560 +15% Attributable Gold Sales (Koz) 1,230 1,218 +1% Average Realized Gold Price, Net ($/oz) $1,329 $1,112 +20% Adjusted Net Income ($M)7 $202 $70 +189% Adjusted Net Income ($ per share)6 $0.38 $0.13 +
Slide 12: Leading balance sheet
Leading balance sheet Pro forma net debt 11% 2016 Debt Repayments YTD reduction* 56% $274M 5.125% Senior Notes due 2019 Since 2013 $226M 6.25% Senior Notes due 2039 Pro forma net debt 1.7x 1.1x $275M Term Loan due 2019 to EBITDA* 12-month trailing average $330M PTNNT Revolver Competitor average** Ne
Slide 13: Enhanced gold price linked dividend
Enhanced gold price linked dividend Annualized dividends per share (US$) $1.25 $1.10 Annual dividend ($/shr) Previous policy Revised policy Down 30% since 2012 $1.00 $0.85 $0.75 $0.60 $0.50 $0.50 $0.40 $0.30 $0.25 $0.15 $0.20 $0.10 $0.00 <$1150 $1150-$1199 $1200-$1249 $1250-$1299 $1300-$1349 $1350-$
Slide 14: Executing capital priorities
Executing capital priorities Year to date change in ending consolidated cash balance ($M) $1,327 ~$875 ($832) $59 ($777) ($41) $2,974 $2,363 $2,099 Cash Net cash Capital Debt Dividend Other Cash Cash proceeds Pro forma (12/31/2015)* provided by expenditures repayment (09/30/2016)* from PTNNT cash op
Slide 15: Operations continue strong performance
Operations continue strong performance Metric Q3 2016 Q3 2015 Change Injury rates (per 200,000 hours worked) 0.30 0.34 -12% Attributable gold production (Koz) 1,246 1,205 +3% Gold CAS ($/oz) $706 $645 +9% Gold AISC ($/oz) $925 $879 +5% Consolidated sustaining capex ($M) $147 $146 +1% Total capex ($M
Slide 16: North America delivering profitable growth
North America delivering profitable growth • Long Canyon ahead of schedule; studies to advance Phase 2 underway • CC&V expansion complete and operation meeting investment case • Progressing incremental growth at Carlin and addressing geotechnical constraints Leach pads at Long Canyon 27 October 2016
Slide 17: South America opens prospective new district
South America opens prospective new district • Smooth transition from construction to operation at Merian • Advancing Yanacocha sulfides through Chaquicocha exploration drilling, autoclave tests • Yanacocha water treatment plant completed under budget First Oregold pour atatMerian stockpiles Merian
Slide 18: Full potential delivering positive results in Australia
Full potential delivering positive results in Australia • Boddington and KCGM achieve record milling rates in September • Strong safety, cost and production performance at KCGM under Newmont leadership • Dual decline in use and mill expansion on track at Tanami Boddington Construction at Tanami 27 O
Slide 19: Strong performance at Akyem and Ahafo
Strong performance at Akyem and Ahafo • Meeting or exceeding production, cost and Full Potential targets • Throughput improvements driving production increases • Optimizing and advancing Ahafo Mill Expansion and Subika underground projects First gold pour at Merian Ahafo 27 October 2016 Newmont Mini
Slide 20: Project pipeline represents near term upside
Project pipeline represents near term upside Update - no structural changes 27 October 2016 Newmont Mining Corporation I Q3 2016 earnings I Slide 20
Slide 21: Ahafo projects unlock major underground resource
Ahafo projects unlock major underground resource Ahafo Mill Expansion Subika Underground Production 75 – 100Koz Production 150 – 200Koz Capital $140 – $180M Capital $150 – $200M Decision Q4 2016 Decision Q4 2016 Expected average for first five years of production. See Endnote 4. Expected life of min
Slide 22: Exploration delivers 123 Moz @ $23/oz since 2001
Exploration delivers 123 Moz @ $23/oz since 2001 Recent development trends (Moz)5 Reserves (proven & probable) 2013 1.4 Long Canyon +50% Resource (measured & indicated) 2015 2.1 Depletion (through 2015) 2010 1.7 Merian +165% 2015 4.5 2003 2.8 Tanami +200% 2015 8.9 2003 8.2 Ahafo +100% 2015 17.4 See
Slide 23: Investors turning to gold as safe haven
Investors turning to gold as safe haven Real interest rates (%) & gold price ($/oz) Gold ETF holdings (Moz) & gold price ($/oz) 4.0% 100 $2,000 3.0% 75 $1,600 2.0% 50 $1,200 1.0% 25 $800 0.0% -1.0% - $400 2012 2013 2014 2015 2016 YTD 2008 2009 2010 2011 2012 2013 2014 2015 2016 10-yr real interest r
Slide 24: Positioned for long-term value creation
Positioned for long-term value creation Where are we today? Where are we heading? Safety & sustainability Industry leaders World class performance Costs AISC down 22% since 2012 First quartile costs Portfolio $2.8B in asset sales since 2013* Superior value and risk profile Production Profitable grow
Slide 25: Appendix
Appendix
Slide 26: 2016 Outlook
2016 Outlooka Consolidated All- Consolidated Consolidated Attributable Consolidated in Sustaining Total Capital a Outlook projections used in this presentation are considered Production Production CAS Costsb Expenditures “forward-looking statements” and represent management’s good (Koz, Kt) (Koz, Kt
Slide 27: Free cash flow
Free cash flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by operating activities plus Net cash used in operating activities of discontinued operations less Additions to property, plant and mine developmen
Slide 28: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Management uses Earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate th
Slide 29: Adjusted net income
Adjusted net income Management uses Adjusted net income (loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and analysts to understand the results of the contin
Slide 30: Adjusted net income
Adjusted net income Three Months Ended Nine Months Ended September 30, September 30, 2016 2015 2016 2015 (1) Loss (income) from discontinued operations relates to (i) adjustments in our Holt property Net income (loss) attributable to Newmont stockholders $ (358) $ 219 $ (283) $ 474 Loss (income) att
Slide 31: All-in sustaining costs
All-in sustaining costs Newmont has worked to develop a metric that expands on GAAP measures such as cost of goods sold and non-GAAP measures, such as Costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance
Slide 32: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In Costs Projects General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (1) Excludes Depreciation and (1)(2)(3) September 30, 2016 to Sales Costs (4) E
Slide 33: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In Costs Projects General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (1) Excludes Depreciation and September 30, 2015 to Sales (1)(2)(3) Costs (4) E
Slide 34: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In Costs Projects General Other and All-In Ounces Sustaining Nine Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (1) Excludes Depreciation and September 30, 2016 to Sales (1)(2)(3) Costs (4) Ex
Slide 35: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In Costs Projects General Other and All-In Ounces Sustaining Nine Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per (1) Excludes Depreciation and September 30, 2015 to Sales (1)(2)(3) Costs (4) Ex
Slide 36: All-in sustaining costs – 2016 outlook
All-in sustaining costs – 2016 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2016 Gold AISC outlook range to the 2016 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 37: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes, the Cautionary Statement on slide 2 and the factors described under the “Risk Factors” section of the Company’s Form 10-K, filed with the SEC on or about February 17, 201