Slide 1: Q3 2017 earnings
Q3 2017 earnings October 26, 2017
Slide 2: Cautionary statement
Cautionary statement Cautionary statement regarding forward looking statements: 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
Slide 3: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 4: Strong third quarter results
Strong third quarter results Leading safety performance and top miner in DJSI for third consecutive year Superior operational Q3 AISC1 of $943/oz on strong performance in Africa, Australia and North America execution Q3 attributable production of 1.3 Moz up 7% from prior year quarter Tanami Expansio
Slide 5: Leading safety and sustainability performance
Leading safety and sustainability performance Injury rates (total recordable injuries per 200,000 hours worked) 2016 injury rates 0.79 0.8 0.8 0.6 0.62 0.4 0.51 0.38 0.36 0.38 0.36 0.2 0 2012 2013 2014 2015 2016 2017 YTD ICMM Newmont average Top sustainability performance in mining sector for three
Slide 6: Continuous cost and efficiency improvements
Continuous cost and efficiency improvements Gold all-in sustaining cost ($/ounce) – 2017 outlook unchanged $1,170 $1,099 $996 $900 – 950 $933 $912 YTD = $909/oz 3 2012A 2013A 2014A 2015A 2016A 2017E October 26, 2017 Newmont Mining Corporation I Q3 2017 earnings I Slide 6
Slide 7: New mines and improved throughput add production
New mines and improved throughput add production Attributable gold production (Moz) – 2017 outlook unchanged 5.0 – 5.4 4.9 5.0 4.9 4.7 4.6 YTD = 3.9 Moz 3 2012A 2013A 2014A 2015A 2016A 2017E October 26, 2017 Newmont Mining Corporation I Q3 2017 earnings I Slide 7
Slide 8: Quecher Main to extend Yanacocha life to 2027
Quecher Main to extend Yanacocha life to 2027 From 2020 – 2025, Quecher Main delivers: Metrics Quecher Main • Yanacocha production ~200 Koz/year* Production* 200 Koz Development capital $250 – $300M • Average CAS of $750 – $850/oz** First production early 2019 • Average AISC of $900 – $1,000/oz** Co
Slide 9: Progressing long-term growth options
Progressing long-term growth options • North America – UG expansions (Carlin, Twin, Long Canyon); Greenfields (Canada, US) • South America – Expansions (Yanacocha, Sabajo); Greenfields (Colombia, Peru, Guiana Shield) • Africa – UG expansions (Ahafo, Akyem); Greenfields (Ethiopia) • Australia – UG ex
Slide 10: Nancy Buese, EVP and CFO
Nancy Buese, EVP and CFO
Slide 11: Free Cash Flow of ~$500M generated in the quarter
Free Cash Flow of ~$500M generated in the quarter Financial metric Q3 2016 Q3 2017 Change Revenue ($M) $1,791 $1,879 +5% Adjusted Net Income ($/diluted share)4 $0.38 $0.35 -8% Adjusted EBITDA ($M) $666 $653 -2% Cash from continuing operations ($M) $508 $688 +35% Free Cash Flow ($M)5 $239 $494 +107%
Slide 12: Q3 adjusted net income of 35 cents per share
Q3 adjusted net income of 35 cents per share GAAP to adjusted net income ($/diluted share) $0.01 $0.01 $0.02 $0.39 $0.35 Net income from Gain on asset and Acquisition cost Valuation allowance Adjusted net income continuing investment sales adjustments and other tax operations adjustments October 26,
Slide 13: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Investing in profitable growth • Growing margins, Reserves and Resources Returning cash to shareholders • Q3 dividend increases 50% to $0.075 Strong balance sheet; liquidity of $5.9B • Repaid $575M convertible notes in July • Net debt to adjusted E
Slide 14: Tom Palmer, EVP and COO
Tom Palmer, EVP and COO
Slide 15: Continued strong performance across North America
Continued strong performance across North America • Carlin delivering strong performance – underground production improving at Leeville • Silverstar de-weighting underway – expecting to access ore in 2018 (represents upside) • CC&V and Long Canyon production strong – accelerating ore on leach pads •
Slide 16: Investing in profitable growth in South America
Investing in profitable growth in South America • Merian delivering improved mine and mill performance – launching Full Potential in Q4 • Yanacocha recovering from weather, transitional ore impacts • Quecher Main approved – first production expected early 2019 • Yanacocha sulfides advancing Merian C
Slide 17: Advancing next phase of profitable growth at Tanami
Advancing next phase of profitable growth at Tanami • Boddington achieved record throughput in August – fourth record set this year • Tanami Expansion completed safely, on time and budget – mill performing above design capacity • KCGM west wall remediation underway • Tanami Expansion 2 advancing thr
Slide 18: Strong performance and prospects in Africa
Strong performance and prospects in Africa • Ahafo and Akyem continue to outperform – 2017 regional cost guidance improved • Ahafo expansions on course – mining ore at Subika UG; crusher foundation complete at mill • Favorable investment agreement terms extended in Ghana – providing ongoing stabilit
Slide 19: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 20: Global portfolio of long-life assets
Global portfolio of long-life assets Operations and sustaining projects Improvements since 2012 Current projects Mid-term projects 3 new lower cost mines Long-term projects 7 profitable expansions Average project IRR > 20% North America $2.8B in non-core asset sales Carlin Improved value and risk pr
Slide 21: Investing in profitable growth across the cycle
Investing in profitable growth across the cycle Project Mine life* (yrs) Cost (AISC/oz) Production (Koz/yr) Capital ($M) IRR (%) Northwest Exodus +7 ~$25 lower 50 – 75 $50 – $70 >30% Tanami Expansion +3 $700 – $750 ~ 80 ~$120 ~35% Ahafo Mill Expansion 75 – 100 $140 – $180 >20% reduced by $250 – $350
Slide 22: Leading growth pipeline and track record
Leading growth pipeline and track record Greenfields Conceptual/ Scoping Prefeasibility/ Colombia Feasibility Definitive Long Canyon Ph 2 Feasibility Yukon Execution Yanacocha Sulfides Pete Bajo Expansion Morrison Eastern Great Basin Awonsu Northwest Exodus Greater Leeville Tanami power Peru Ahafo N
Slide 23: Advancing power project to improve risk and value
Advancing power project to improve risk and value • Progressing Tanami Power project to improve costs, reliability and environmental impact • Gas fueled power generation expected to lower costs significantly • Pipeline expected to improve security of supply with flexibility to support future growth
Slide 24: Differentiated long-term production profile
Differentiated long-term production profile Projected production profile (Koz)3 Industry-leading long-term pipeline Divestments Current projects Mid-term projects 5,000 4,000 3,000 Existingassets Existing assetsand andsustaining sustainingprojects projects Existing assets and sustaining projects 2,0
Slide 25: Superior Reserves and returns
Superior Reserves and returns 129 oz 12 yrs 72% 40 TB Reserves per Kshare Operating Reserves Reserves based in Drilling data vs gold sector average vs gold sector US, Australia, in proprietary of 77oz per Kshare* average of 9.9 yrs** Canada and Western exploration data base vs gold sector Europe vs
Slide 26: Leading in profitability and responsibility
Leading in profitability and responsibility Safe, stable and profitable gold production over longer horizon Superior operational Continuous cost and productivity improvement through Full Potential execution Industry leading talent and robust and diverse leadership pipeline Ongoing margin growth acro
Slide 27: Questions?
Questions?
Slide 28: 2017 Outlook
2017 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital a2017 Outlook in the table are considered “forward-looking Production Production CAS Costsb Expenditures statements” and are based upon certain assumptions, (Koz, Kt) (Koz, Kt) ($/oz, $/lb)
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, 2017 2016 2017 2016 Net income (loss) attributable to Newmont stockholders $ 206 $ (358) $ 429 $ (283) 1. Net loss (income) attributable to Newmont stockholders from discontinued operations Net loss (income) attribu
Slide 31: 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 32: 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 (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, p
Slide 33: 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 performan
Slide 34: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In 1. Excludes Depreciation and Costs Development General Other and All-In Ounces Sustaining amortization and Reclamation and Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds C
Slide 35: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In 1. Excludes Depreciation and Costs Development General Other and All-In Ounces Sustaining Nine Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per amortization and Reclamat
Slide 36: All-in sustaining costs – 2017 outlook
All-in sustaining costs – 2017 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2017 Gold AISC outlook range to the 2017 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 21, 201