Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — 2006 Denver Gold Show
16 slides from Newmont's conference presentation, Sep 27, 2006
Slide 1: 2006 Denver Gold Show
2006 D ENVER G OLD S HOW Wayne W. Murdy Chairman & CEO Pierre Lassonde President September 27, 2006 2006 D ENVER G OLD S HOW Exhibit 99.1
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, that are intended to be covered by the safe harbor created by such sections. S
Slide 3: Overview
Overview Gold in a Long-Term Bull Market Generating Strong Bottom Line Leverage to Gold New Mines to Grow Production Beyond 2007 Expect to Grow Reserves for 5 Straight Year Anticipate Approximately $160 Million in Net Q3 Pre-Tax Gains th
Slide 4: Competitive Cost Profile
Competitive Cost Profile Newmont vs. Industry Weighted Average Cash Costs $- $50 $100 $150 $200 $250 $300 $350 2002 2005 H1 2006 Industry NEM 1) Source: GFMS 2) For 2005 and H1 2006, Newmont weighted average cash costs estimated as 1.05 x Cost Applicable to Sales per ounce
Slide 5: First-Half 2006 Highlights
H1 2005 $173 H1 2005 $322 H1 2005 $182 First-Half 2006 Highlights H1 2006 $291 H1 2006 $584 H1 2006 $374 $0 $200 $400 $600 Income from Continuing Operations ($M) Net Cash from Continuing Operations ($M) Operating Margin ($/oz) ~ 40% Increase in Average Realized Gold Price From H1 2005 to H1 2006 * *
Slide 6: Newmont's Strong Asset Portfolio
Newmont’s Strong Asset Portfolio JUNDEE Over 32 Million Acres of Land in the World’s Best Gold Districts Nevada Yanacocha Indonesia Ghana Australia/ New Zealand Investment Portfolio
Slide 7: Nevada
Nevada 33 mm oz of Reserves; ~ 2.3 mm oz of Production in 2006 Nevada 40% Phoenix 300K – 350K oz/yr producer 21 year mine life 9 mm oz of gold reserves Copper leach & exploration upside Leeville Ramping-up to 3,200 tpd by end of 2007 400K – 450K oz/yr of steady state production Platform for further
Slide 8: Australia & New Zealand
Australia & New Zealand 14.9 mm oz of Reserves; ~ 1.4 mm oz of Production in 2006 Overview Operations in Western Australia, Northern Territory, Queensland and the North Island of New Zealand Boddington Project Initial production in late 2008 or early 2009 600,000 – 675,000 equity oz of steady-state
Slide 9: Indonesia
Indonesia 6.7 mm oz of Au Reserves; ~ 200k oz of Au Production in 2006 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 2005 2006 2007 Overview 2007 opportunities include strong cash flow and earnings contributions as copper hedges roll off in Q1 2007 Overview Near-term challenges from harder ores affect
Slide 10: Yanacocha
Yanacocha 16.8 mm oz of Reserves; ~ 1.4 mm oz of Production in 2006 Overview Yanacocha expected to average 850,000 – 900,000 equity ozs from 2007-2010 resulting in higher production costs Gold mill in 2008 New Government supportive of fair and sustainable business practices Significant sulfide miner
Slide 11: Ghana
Ghana 18.7 mm oz of Reserves; ~ 170 k oz of Production in 2006 Ahafo Project On schedule start-up and first gold pour in July 2006 500,000 – 550,000 oz at annual steady state production Power rationing affecting 2006 and 2007 production Akyem Project Deferring development to complete permitting, rev
Slide 12: Confident We Will Grow Reserves for the Fifth Straight Year
Confident We Will Grow Reserves for the 5 Straight Year th 2002 2003 2004 2005 North America 24% South America 27% Australia 14% Indonesia 2% West Africa 10% Opportunity Fund & Support 21% Turkey 2% 2006 Exploration Expense - $160 mm - $165 mm Nevada 36% Yanacocha 18% Batu Hijau 7% Ghana 20% Other 3
Slide 13: Ghana Growth
Ghana Growth 19.9 16.0 11.9 4.9 3.3 2001 2002 2003 2004 2005 Ahafo Akyem Rapid Reserve Growth & Expansion Opportunities Over 16 mm ozs added to reserves since acquisition Potential to add 250,000 – 350,000 ozs of annual production at Ahafo Ahafo Exploration Significant exploration upside remains 13
Slide 14: Investment Portfolio
Investment Portfolio 2006 Estimated Royalty and Other Income of $90 - $105 million +$300 Million in Half Gains from Sale of Non-Core Assets Long-Term Wealth Creation 1) Alberta Heavy Oil Investment: $20 million Investment $280 million Sale Proceeds 2) Canadian Oil Sands Trust: $200 million Investmen
Slide 15: We are in a Long-Term Gold Bull Market
We are in a Long-Term Gold Bull Market $- $100 $200 $300 $400 $500 $600 $700 $800 1969 1972 1975 1978 1981 1984 1987 1990 1993 1996 1999 2002 2005 -8% -7% -6% -5% -4% -3% -2% -1% 0% 1% 2% Current Account Deficit/Surplus Gold Price Source: Bloomberg Excessive US Dollar Reserves in Asia Current Accoun
Slide 16: Conclusion
Conclusion Gold in a Long-Term Bull Market Generating Strong Bottom Line Leverage to Gold New Mines to Grow Production Beyond 2007 Expect to Grow Reserves for 5 Straight Year Anticipate Approximately $160 Million in Net Q3 Pre-Tax Gains th