Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merger or Acquisition (March 2019)
24 slides from Newmont's merger presentation, Mar 19, 2019
Slide 1: 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 2: Additional information about the Newmont Goldcorp transaction
Additional information Additional information about the Newmont Goldcorp transaction and where to find it This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy or an invitation to purchase or subscribe for any securitie
Slide 3: Newmont Goldcorp value creation potential of >$4.4B
Newmont Goldcorp value creation potential of >$4.4B2 pre-tax cost efficiency and productivity improvements1,3 Annual ($M) 3 $365M $165M Full Potential cost efficiency & productivity improvements 2 $100M Total annual synergy, cost efficiency & productivity improvements Integration planning identified
Slide 4: Support for initial annual synergies estimate of $100M
Support for initial annual synergies estimate of $100M1 1 Synergies focused on G&A and initial supply chain savings • Estimate excludes Full Potential cost efficiency and productivity improvement opportunities • Longer-term upside opportunities include concentrate marketing and potential tax synergi
Slide 5: Support for incremental annual efficiencies of $100M
Support for incremental annual efficiencies of $100M1 2 Incremental supply chain efficiencies estimate efficiencies March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 6 Opportunity Description Estimated % of Leverage purchasing scale in overlapping global categories •L
Slide 6: Full Potential to deliver $165M annually
Full Potential to deliver $165M annually1,3 3 Annual pre-tax cash flows from Full Potential benefits ($M) • Greatest total value potential from processing improvements – productivity, reliability and cost efficiency • Additional value from surface and underground mining initiatives, as well as suppo
Slide 7: $165M per year Full Potential site level detail
$165M per year Full Potential site level detail1,3 Key principles and success factors success >$2B in Full Potential3 benefits since 2013 Newmont model has delivered March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 8 Quarterly stories Refresh every 12 – 18 months Qua
Slide 8: Goldcorp asset due diligence
Goldcorp asset due diligence
Slide 9: Key due diligence focus areas
Key due diligence focus areas In-person asset and functional diligence Technical and business due diligence; multiple site visits with senior leaders Operating mines with near-mine exploration upside and revenue stream diversification Assets located in high-ranking gold districts All sites are cyani
Slide 10: Cornerstone Goldcorp assets
Cornerstone Goldcorp assets March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 11 Peñasquito • Large gold-silver deposit with substantial zinc credits • Dynamic mineral system with extensive low-grade and localized high-grade gold • Strong pipeline of early-stage brown
Slide 11: Optimization potential to unlock longer-term value
Optimization potential to unlock longer-term value March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 12 Éléonore • Goldcorp’s newest Canadian mine with significant exploration potential • Leading tailings storage facility management • Metallurgical test work suggests
Slide 12: Goldcorp projects provide long-term optionality
Goldcorp projects provide long-term optionality March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 13 Nueva Unión (50%) • Opportunity to develop two Cu/Cu-Au porphyry deposits; experienced partner in Teck • Long-life in favorable jurisdiction; brownfields potential at
Slide 13: Peñasquito
Peñasquito key due diligence summary • Optimize blast fragmentation • Evaluate late 2018 ore hardness data • Increase exploration investment focused on uncovering alluvial cover March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 14 Mitigation steps •Additional potentia
Slide 14: Cerro Negro
Cerro Negro key due diligence summary • Pursue mine-life extensions on large, prospective land package • Standardize asset retirement obligation consistent with Newmont practices • Integrate Newmont’s Social and Environmental best practices March 2019 Newmont Mining Corporation I Newmont Goldcorp te
Slide 15: Musselwhite
Musselwhite key due diligence summary • Potentially increase mill rates • Leverage Newmont’s brownfield drilling expertise to expand exploration program and define mineralization at depth March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 16 Mitigation steps •Improve g
Slide 16: Éléonore
Éléonore key due diligence summary • Enhance geotechnical model and incorporate into mine development • Optimize floatation and mill circuits to improve recoveries • Leverage Newmont’s proprietary exploration technologies March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Sl
Slide 17: Porcupine
Porcupine key due diligence summary • Enhance capital investment review process based on Newmont standards • Pursue further cost reduction opportunities through cut-off grade optimization • Land position consolidation mine plan March 2019 Newmont Mining Corporation I Newmont Goldcorp technical updat
Slide 18: Red Lake
Red Lake key due diligence summary • Autoclave evaluation and optimization • Pursue further evaluation of greenfields exploration opportunities March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 19 Mitigation steps •Implement new resource models and drill spacing to im
Slide 19: Nueva Unión
NuevaUnión key due diligence summary • • Mine plan optimization opportunities including block cave potential Evaluate autonomous equipment opportunities to improve haulage and drilling options • Brownfield expansion potential appears promising March 2019 Newmont Mining Corporation I Newmont Goldcorp
Slide 20: Norte Abierto
Norte Abierto key due diligence summary • Evaluate plans to refine and smooth geochemistry blending • Further evaluate alternative mining methods • Further refine water extraction plans March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 21 Mitigation steps •Prioritize
Slide 21: Coffee
Coffee key due diligence summary rates March 2019 Newmont Mining Corporation I Newmont Goldcorp technical update – Slide 22 Mitigation steps •Refine geotechnical studies to further define depth and extent of permafrost •Refine surface water control plans •Prioritize oxidation state modeling improvem
Slide 22: Coffee due diligence findings and opportunities
Coffee key due diligence summary Due diligence findings and opportunities Continue to enhance block model and surface water control plans Optimize low cyanide and lime consumption plans given rapid ore leach rates Further evaluate optionality for mine planning Key focus areas Analyze flexibility and
Slide 23: 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 February 21, 2019 and dis
Slide 24: Endnotes
Endnotes Investors ae encouragedtoreadthe infomation contsinedin his presrtation in conuncion wth he flewing notes, the Cauonary Statement on sie 2 andthe facters described under he "Risk Factors" scion the Companys orm 10, fled wih the SEC on Felauary 21, 2010 end csclosure i to Company's cher rece