Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Diggers and Dealers 2015
25 slides from Newmont's conference presentation, Aug 2, 2015
Slide 1: Tom Palmer, Senior Vice President APAC
Tom Palmer, Senior Vice President APAC Diggers and Dealers | 2 August 2015
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, and are intended to
Slide 3: Tom Palmer, Senior Vice President APAC
Tom Palmer, Senior Vice President APAC Diggers and Dealers | 2 August 2015
Slide 4: Batu Hijau
Batu Hijau
Slide 5: Steady reduction in injury rates
Steady reduction in injury rates Total Recordable Incident Frequency Rate (TRIFR) (per 200,000 hours worked) 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 2012 2013 2014 2015 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 5
Slide 6: Global operations
Global operations 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 6
Slide 7: Delivering our strategy
Delivering our strategy AISC1 of ~$900 per ounce – down 14% from Q2 2014 Improve the underlying 1.2 Moz of attributable gold production – equal to Q2 2014, offsetting divestments business Injury rates at historic lows – down ~40% from Q2 2014 Integrating CC&V – adds free cash flow and mine life with
Slide 8: Asia Pacific operations
Asia Pacific operations 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 8
Slide 9: Asia Pacific performance
Asia Pacific performance Au 20 % YTD COMPARED TO PRIOR YEAR Consolidated Production, YTD June GOLD PRODUCTION 15% 28% Cu 137 % YTD COMPARED TO PRIOR YEAR North America COPPER 40% 17% PRODUCTION South America Asia Pacific Africa USD ALL IN 16 % YTD COMPARED TO PRIOR YEAR SUSTAINING COST/OZ 2 August 2
Slide 10: Productivity Improvement – Full Potential process
Productivity Improvement – Full Potential process “Diagnose ” “Design” 2 wks 4 wks 4 wks 4 wks 4 wks Ramp-up Gap to Full Potential Root Cause Analysis & Batu Hijau • Interviews • Value driver analysis Issue Prioritisation Solution Generation Full • Team • Variance analysis • Size of prize by area Po
Slide 11: Boddington Full Potential
Boddington Full Potential Mining: Sum of Shovel Hang and Truck Wait Time per load 4.00 3.50 3.00 Full Plant Shutdown Hours Minutes 1000 2.50 900 800 700 600 2.00 500 400 300 200 1.50 100 0 2013 2014 2015 B 2015 F 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 11
Slide 12: Tanami Full Potential
Tanami Full Potential Total UG Haulage (tkm's) 2,400,000 2,200,000 2,000,000 1,800,000 Tanami Operations UG Truck 1,600,000 Payload Improvement 63 1,400,000 62 61 1,200,000 60 Payload (tonnes) 59 1,000,000 58 57 800,000 56 55 54 600,000 53 Jul-12 Nov-12 Jul-13 Nov-13 Jul-14 Nov-14 Jan-15 Sep-12 Sep-
Slide 13: Exploration focused on high grade, near mine options
Exploration focused on high grade, near mine options Post-2020 production 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 13
Slide 14: Tanami grown to nearly 11 Moz through exploration
Tanami grown to nearly 11 Moz through exploration 5.1 Moz produced; 5.6 Moz in Reserves & Resource5 Future growth potential • Extensions at Callie ̶ 4.7 Moz produced ̶ 1.7 Moz Reserves and Resource • Extensions at Auron ̶ 0.4 Moz produced ̶ 3.4 Moz Reserves and Resource • Federation Limb discovery (
Slide 15: Auron – significant growth potential at similar grade
Auron – significant growth potential at similar grade Auron • Reserves of 2.6 Moz ̶ 13.0 million tonnes at 6.2 grams of gold per tonne • Resource of 0.8 Moz ̶ 4.3 million tonnes at 5.7 grams of gold per tonne • Only 50% drilled to Reserve Auron drill intercepts typically vary in thickness from 5 to
Slide 16: Federation Limb – new higher grade discovery
Federation Limb – new higher grade discovery Federation Limb • Resources of 0.5 Moz ̶ 2.3 million tonnes of ore at 6.9 grams of gold per tonne • Only 25% drilled to Resource Federation Limb drill intercepts typically vary in thickness from 2 to 35 meters with grades of 2 to 200 grams of gold per ton
Slide 17: Liberator – latest higher grade discovery
Liberator – latest higher grade discovery Liberator • Expect to declare first Resource in 2016 • Target open in all directions Liberator drill intercepts typically vary in thickness from 2 to 40 meters with grades of 2 to 30 grams of gold per tonne; select intercepts shown above Federation drill hol
Slide 18: Sustainability
Sustainability Employment of 11,200 people across Australia, New Zealand and Indonesia $1.7 billion on goods, services, taxes, royalties and salaries to the Australian and New Zealand economies KCGM – Ultra Fine Grind Mill 2 August 2015 Newmont Mining Corporation | Diggers and Dealers | 18
Slide 19: Questions
Questions For further information contact: Newmont Asia Pacific | Telephone +61 8 9423 6100 | newmont.com
Slide 20: 2015 Outlook
2015 Outlooka a2015 Outlook projections used in this presentation All-in Consolidated (“Outlook”) are considered “forward-looking statements” Consolidated Attributable Consolidated Sustaining Total Capital and represent management’s good faith estimates or Production Production CAS Costsb Expenditur
Slide 21: Adjusted EBITDA
Adjusted EBITDA We also present adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) as a non-GAAP measure. Our management uses adjusted net income, adjusted net income per diluted share and Adjusted EBITDA as measures of operating performance to assist in compa
Slide 22: 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 to provide visibility into the economics of our gold mining operations related to expenditures, operating performance and the ability to generate cash flow fr
Slide 23: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In (1) Excludes Depreciation and Costs Projects General Other and All-In Ounces Sustaining Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per amortization and Reclamation and June 30, 2015 to
Slide 24: All-in sustaining costs
All-in sustaining costs Advanced Treatment All-In (1) Excludes Depreciation and Costs Projects General Other and All-In Ounces Sustaining Three Months Ended Applicable Remediation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per amortization and Reclamation and (1)(2)(3) (4) (5
Slide 25: 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 most recent Form 10-Q, filed with the SEC on July 23, 2015