Slide 1: Q3 2018 Earnings
Q3 2018 Earnings October 25, 2018
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 Chief Executive Officer
Gary Goldberg President and Chief Executive Officer
Slide 4: Operational execution delivers strong Q3
Operational execution delivers strong Q3 Q3 AISC1 of $927/oz – strong performance in Africa and South America Superior operational Q3 attributable production of 1.3 Moz – consistent with second half weighting execution Investing in fit-for-purpose technology – advancing most promising digital initia
Slide 5: Leading sustainability performance
Leading sustainability performance Total injury rates (total recordable injuries per 200,000 hours worked) 1.0 0.8 0.6 0.4 0.43 0.2 0.0 2012 2013 2014 2015 2016 2017 YTD 2018 Top sustainability performance in mining sector for four consecutive years * YTD figures used in this presentation are nine m
Slide 6: Costs improve with ongoing productivity gains
Costs improve with ongoing productivity gains All-in sustaining cost1 ($/oz) $1,169 $1,099 $997 $950 – $990 $935 $913 $924 YTD = $973/oz 2012 2013 2014 2015 2016 2017 2018E October 25, 2018 Newmont Mining Corporation I Q3 2018 earnings I Slide 6
Slide 7: Gold production back-half weighted
Gold production back-half weighted Attributable gold production (Moz) 5.3 4.9 – 5.2 4.9 5.0 4.9 4.7 4.6 YTD = 3.7 Moz 2012 2013 2014 2015 2016 2017 2018E October 25, 2018 Newmont Mining Corporation I Q3 2018 earnings I Slide 7
Slide 8: Four projects in execution; Subika UG ramping up
Four projects in execution; Subika UG ramping up Mine life Cost† Production Capital IRR Project (years) (AISC/oz) (Koz/yr) ($M) (%) Subika Underground 11 150 – 200 $160 – $200 >20% reduced by $250 – $350* Ahafo Mill Expansion - 75 – 100 $140 – $180 >20% Quecher Main** 8 $900 – $1,000 ~200 $250 – $30
Slide 9: Progressing long-term growth options
Progressing long-term growth options • North America – UG expansions (Carlin, Long Canyon); Greenfields (US, Canada, Mexico) • South America – Expansions (Yanacocha, Sabajo); Greenfields (Andes, Guiana Shield) • Africa – UG expansions (Ahafo, Akyem); Greenfields (Ethiopia) • Australia – UG expansion
Slide 10: Nancy Buese, EVP and Chief Financial Officer
Nancy Buese EVP and Chief Financial Officer
Slide 11: Strong Q3 financial results despite lower gold prices
Strong Q3 financial results despite lower gold prices Financial metric Q3 2017 Q3 2018 Change Revenue ($M) $1,879 $1,726 -8% Adjusted Net Income6 ($M) $184 $175 -5% Adjusted Net Income ($/diluted share) $0.34 $0.33 -3% Adjusted EBITDA4 ($M) $656 $636 -3% Cash from continuing operations ($M) $489 $42
Slide 12: Q3 adjusted net income of 33 cents per share
Q3 adjusted net income of 33 cents per share GAAP to adjusted net income ($/diluted share) $0.74 $0.04 $0.14 $0.33 ($0.31) Net loss from Impairment of Tax adjustments Other** Adjusted net continuing long-lived assets & and valuation income operations adjustment* allowance *Impairment of long-lived a
Slide 13: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Maintaining investment grade balance sheet • Liquidity of $6B as of Q3 2018 • Net debt to adjusted EBITDA of 0.4x Growing margins, Reserves and Resources Returning cash to shareholders • Expected annualized dividends of ~$300M7 • Repurchased over 2
Slide 14: Tom Palmer, EVP and Chief Operating Officer
Tom Palmer EVP and Chief Operating Officer
Slide 15: North America performance improving in second half
North America performance improving in second half • Carlin delivers strong performance despite continued geotechnical challenges • CC&V concentrate project completed; ramping up shipments to Nevada • Twin Creeks performance improves with lower cost production from underground • Advancing project st
Slide 16: South America investing in profitable production
South America investing in profitable production • Merian and Yanacocha deliver solid performance from higher grades and throughput • Merian primary crusher commissioned with four haul trucks added to fleet • Quecher Main development continues, first ore placed in September 2018 • Chaquicocha Oxides
Slide 17: Advancing next phase of growth in Australia
Advancing next phase of growth in Australia • Tanami delivers strong Q3; power project on track for Q1 2019 • Boddington’s optimized mill maintenance strategy improves costs; stripping campaign ongoing • KCGM managing geotechnical impacts; assessing options for longer-term mine plans • Tanami Expans
Slide 18: Africa focused on delivering projects to improve value
Africa focused on delivering projects to improve value • Steady performance at Ahafo and Akyem from higher grades • Subika Underground on-track to reach commercial production in Q4 • Ahafo Mill Expansion progressing with commercial production expected in H2 2019 • Ahafo North and regional growth stu
Slide 19: Gary Goldberg, President and Chief Executive Officer
Gary Goldberg President and Chief Executive Officer
Slide 20: Global portfolio of long-life assets
Global portfolio of long-life assets 68.5 million ounces in total 2017 Reserves Improvements since 2012 % of Reserves: >70% in US and Australia 3 new lower cost mines 9 profitable expansions Average project IRR >20% $2.8B in non-core asset sales North America Carlin Improved value and risk profile T
Slide 21: Leading project pipeline and track record
Leading project pipeline and track record Long-term projects (>3 years; not in outlook) Mid-term projects (<3 years; not in outlook) Greenfields Sustaining projects (in outlook) Conceptual/ Scoping Current projects (in outlook) Prefeasibility/ Canadian Yukon Feasibility Definitive Greater Leeville F
Slide 22: Steady long-term production profile
Steady long-term production profile Projected production profile (Moz)* Industry-leading long-term pipeline 6.0 Divested Current Feasibility Mid-term projects projects project** 5.0 4.0 3.0 Existing assets and sustaining projects 2.0 1.0 - 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 23: Leading in profitability and responsibility
Leading in profitability and responsibility • Safe, stable and profitable gold production over longer horizon • Ongoing margin, Reserves and Resources growth across four anchor regions • Superior balance sheet, dividends and sustainability performance Gold pour at Carlin October 25, 2018 Newmont Min
Slide 24: Questions?
Questions?
Slide 25: 2018 Outlook
2018 Outlooka Consolidated a2018 Outlook in the table above are considered “forward-looking All-in Consolidated statements” and are based upon certain assumptions, including, but not Consolidated Attributable Consolidated Sustaining Total Capital limited to, metal prices, oil prices, certain exchang
Slide 26: Adjusted net income (loss)
Adjusted net income (loss) 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
Slide 27: Adjusted net income (loss)
Adjusted net income (loss) Three Months Ended Nine Months Ended September 30, September 30, (1) Net loss (income) attributable to Newmont stockholders from discontinued operations 2018 2017 2018 2017 relates to (i) adjustments in our Holt royalty obligation, presented net of tax expense Net income (
Slide 28: 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 29: 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 30: 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 31: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and Projects, amortization and Reclamation and Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining remediation. Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining
Slide 32: All-in sustaining costs
All-in sustaining costs Advanced (1) Excludes Depreciation and Projects, amortization and Reclamation and Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining remediation. Nine Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (
Slide 33: All-in sustaining costs – 2018 outlook
All-in sustaining costs – 2018 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2018 Gold AISC outlook range to the 2018 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 34: 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-Q, filed with the SEC on October 25, 2018 and disc
Slide 35: Endnotes
Endnotes 6. Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See slides 26-27 for more information and reconciliation to the nearest GAAP metric. 7. Anticipated annualized dividends of ~$300M represents management’s current expe