Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (December 2021)
55 slides from Newmont's investor presentation, December 2021
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES DECEMBER 2021 THROUGH SUSTAINABLE, RESPONSIBLE MINING DECEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 1
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: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions World’s Leading Gold Company ▪ Nine world-class assets in top-tier jurisdictions* Musselwhite ▪ Robust gold reserves of 94Moz and 65Moz 20% in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of average ~8M GEOs* Turquoise Ridge/Twin Creeks
Slide 4: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION Feasibility Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~45%), Copper (~45%), Australia – Gold Silver (~10%) Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold
Slide 5: Investing in Exploration to Extend Mine Life
Investing in Exploration to Extend Mine Life Exploration Investment** Coffee Galore Creek 20% Saddle North Musselwhite Éléonore $300M Japan Porcupine in 2022 Nevada Gold Mines* CC&V 80% 80% Peñasquito Mexico Pueblo Viejo* Merian Espérance Akyem Ahafo Yanacocha Tanami Andes Centralian LEGEND Lachlan
Slide 6: Steady Production Through Industry-Best Portfolio
Steady Production Through Industry-Best Portfolio INDICATIVE 10-YEAR PRODUCTION PROFILE* (Attributable Moz per Year) 10 9 Total GEO Production** 8 7 Gold Production** 6 SOUTH AMERICA*** 5 AFRICA 4 3 AUSTRALIA 2 NORTH AMERICA*** 1 - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 ~8 Million Gold Eq
Slide 7: Increasing Production and Investing in Our Future
Increasing Production and Investing in Our Future ATTRIBUTABLE PRODUCTION* (MOZ) Gold Production* UNDERPINNED BY THE Co-Product GEO Production** INDUSTRY’S BEST PORTFOLIO 8.0 Total GEO Production ▪ 7.5 – 8.3 million GEOs per year through 2026* 7.0 Gold ▪ Includes 6.0 – 6.8 million ounces Production
Slide 8: Reducing Costs and Improving Margin
Reducing Costs and Improving Margin DECLINING COSTS OVER ALL-IN SUSTAINING COST ($/OZ) Gold AISC* TIME Co-Product GEO AISC $1,100 Total GEO ▪ Gold AISC improves to $920 – AISC* $1,020/oz and co-product GEO $1,000 AISC improves to $800 – $900/oz $900 ▪ Improving total GEO AISC to between $880 - $980/
Slide 9: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement LEVERAGING PROVEN WORLD-CLASS PROGRAM AND TECHNICAL EXPERTISE Diagnose Design Deliver Refresh ~15% EXTERNAL ~55% MINING SPEND & OTHER IMPROVEMENT ✓ Proven integrated operating model with deep bench Supply Chain, Asset Optimizing Fleet and of experienced
Slide 10: Diverse, Global Portfolio of World-Class Assets
Diverse, Global Portfolio of World-Class Assets 2022 ALL-IN SUSTAINING COSTS ($/GEO) World-Class Assets $1,600 $1,400 Yanacocha $1,200 Total GEO AISC* $1,000 $800 Pueblo Viejo** Yanacocha Ahafo CC&V Akyem Tanami Merian Boddington Éléonore Peñasquito Porcupine Musselwhite Nevada Gold Cerro Negro $600
Slide 11: Focused on Value, Driven by Purpose: 2021 Highlights
Focused on Value, Driven by Purpose 2021 HIGHLIGHTS On track to deliver attributable Protecting the wellbeing of our Generated $1.7B in attributable gold production of 6.0 million workforce and communities free cash flow* and >$250 million ounces at all-in sustaining cost of throughout Covid respons
Slide 12: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities INVESTING IN ORGANIC RETURNING CASH TO MAINTAINING FINANCIAL GROWTH SHAREHOLDERS FLEXIBILITY ✓ Sustaining capital of ~$1B per year ✓ Industry-leading dividend framework ✓ Liquidity of $7.6B and cash position of $4.6B at Q3 ✓ Average attributable development
Slide 13: Free Cash Flow Increases with Higher Gold Price
Free Cash Flow Increases with Higher Gold Price ANNUAL INCREMENTAL FREE CASH FLOW* +$4.8B +$3.6B INCREMENTAL FCF +$2.4B +$1.2B $1,200 $1,500 $1,800 $2,100 $2,400 +$400M FCF per annum for every $100/oz increase in gold price *Free Cash Flow assumptions as of December 2, 2021; Includes impacts from ap
Slide 14: Industry-Leading Dividend Framework
Industry-Leading Dividend Framework ▪ Leading $1.00/share sustainable base dividend ANNUALIZED DIVIDEND PAYOUT $2.80 - $3.70 ▪ Targeting 40% – 60% of incremental attributable Free Cash Flow above $1,200/oz returned to shareholders ▪ Evaluating gold price increments of ~$300/oz $2.20 - $2.80 ▪ Approv
Slide 15: External Recognition for Responsible Business Practices
External Recognition for Responsible Business Practices ESG RATINGS ESG RECOGNITION SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 99% Percentile ranking 23 ESG Risk Rating measures exposure and #2 Most transparent company in B CDP Climate Scores reflective of global metals and mining sector man
Slide 16: Focused on Value, Driven by Purpose
Focused on Value, Driven by Purpose 2020 SUSTAINABILITY REPORT 2020 CLIMATE STRATEGY REPORT STANDARDS AND PERFORMANCE EXPECTATIONS ADDITIONAL REPORTS ON OUR WEBSITE ▪ Sustainability Accounting Standards Board (SASB) ▪ 2020 SASB Index ▪ Task Force on Climate-related Financial Disclosures (TCFD) ▪ 202
Slide 17: Investment highlights
#1 gold producer with an Proven operating model and Focused on industry-leading average ~8M GEOs* per year deep bench of experienced returns to shareholders with through 2031 and significant leaders with strong track record disciplined capital allocation exposure to other metals through the cycle St
Slide 18: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING DECEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 18
Slide 19: Delivering on Capital Allocation Strategy in 2021
Delivering on Capital Allocation Strategy in 2021 ✓ Delivered first Autonomous Haulage Fleet to gold mining industry ✓ Approved full funds for Ahafo North and progressing Tanami Expansion 2 INVESTING IN ORGANIC ✓ Progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds
Slide 20: Five Year Outlook: $1,800/oz Gold Price Assumption
Five Year Outlook: $1,800/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 21: Five Year Outlook: $1,200/oz Gold Price Assumption
Five Year Outlook: $1,200/oz Gold Price Assumption GUIDANCE METRIC (+/- 5%) 2022E 2023E 2024E 2025E 2026E Gold production* (Mozs) 6.2 6.0 – 6.6 6.2 – 6.8 6.2 – 6.8 6.2 – 6.8 Other metal production** (Mozs) 1.3 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 1.4 – 1.6 Total GEO production* (Mozs) 7.5 7.5 – 8.1 7.7 – 8
Slide 22: Industry-Leading Portfolio Delivers Long-Term Value
Industry-Leading Portfolio Delivers Long-Term Value AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Profitable Extending Mine Life Preparing for Future Growth Maintaining Strong (38.5%) Production Performance ▪ Boddington adds ▪ Peñasquito continues ▪ Cerro Negro improves ▪ Ak
Slide 23: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS PROGRESSING TANAMI EXPANSION 2 ✓ Delivers a 1.5 km deep production shaft, reducing ✓ Supports Tanami’s future as a long-life, low-cost producer operating costs by ~10% through efficiency improvements and unlocks o
Slide 24: Ahafo North – Best Unmined Deposit in West Africa
Ahafo North – Best Unmined Deposit in West Africa EXPANDING CURRENT FOOTPRINT IN GHANA PROGRESSING AHAFO NORTH ✓ Open pit mine, stand-alone mill for processing 3.5Mozs of ✓ Investment of $750-$850M with three-year development Reserve and 1.0Mozs of Resource timeline ✓ 13-year mine life with ~300Koz
Slide 25: Yanacocha Sulfides Advances Towards 2022 Approval
Yanacocha Sulfides Advances Towards 2022 Approval NEXT CHAPTER IN YANACOCHA’S LONG HISTORY PROFITABLE PRODUCTION WITH FURTHER UPSIDE ✓ First phase includes Yanacocha Verde and Chaquicocha deposits ✓ First five-year average CAS of $500- $600/GEO and AISC of to profitably extend Yanacocha operations b
Slide 26: Porcupine Adds Profitable Production With Pamour
Porcupine Adds Profitable Production With Pamour EXTENDING MINE LIFE IN A PROVEN DISTRICT EXISTING INFRASTRUCTURE IMPROVES RETURNS ✓ Pamour layback adds 1.6 Moz gold production to Porcupine, ✓ ~$400 million development capital with a full funds decision extending mine life through 2035 expected in t
Slide 27: Expanding the Cerro Negro District in Argentina
Expanding the Cerro Negro District in Argentina UP TO 50% INCREASE IN ANNUAL PRODUCTION SIGNIFICANT EXPLORATION UPSIDE ✓ The project is expected to improve annual production to above ✓ Highly prospective and underexplored gold district 350 Koz beginning in 2024 ✓ Among the top land packages in Newmo
Slide 28: Significant Milestones in Our ESG Journey
Significant Milestones in Our ESG Journey 2001 2004 2007 2013 2016 2020 Founding member Established Safety Appointed Adopted Conflict-Free Sustainability and Implementing Global of ICMM & Sustainability Company’s first Gold Standard safety targets Industry Standard on Board committee Chief Sustainab
Slide 29: Reducing Our Carbon Footprint
Reducing Our Carbon Footprint >30% REDUCTION 30% REDUCTION 100% CARBON NEUTRAL Absolute GHG Emissions Absolute GHG Emissions of joint 2050 Ambition and Intensity by 2030 (Scope 1 and 2) venture assets and supply chain by 2030 (Scope 3) ▪ Targets will be delivered from our current ▪ Reduction targets
Slide 30: Targeted Strategy to Reduce Scope 1 & 2 Emissions
Targeted Strategy to Reduce Scope 1 & 2 Emissions PROJECTS IDENTIFIED OPPORTUNITIES THROUGH RENEWABLES OPERATIONAL ~10% YANACOCHA CHANGES Evaluating a wind project >30% ~10% TANAMI >800 KtCO2e Reduction from Reduction in Scope Evaluating future wind and solar projects Renewable Energy 1 & 2 Emission
Slide 31: Pathway to Achieving Climate Change Goals
Pathway to Achieving Climate Change Goals 10+ YEARS NEXT 10 YEARS IN EXECUTION Battery Electric Haul Trucks Less Energy Intensive Ore Fleet Electrification Mine Electrification All Sites and Projects – Global Separation (Tanami Expansion 2) (Borden) All Sites – Global Tanami – Australia Porcupine –
Slide 32: Social Acceptance Built on Trust and Engagement
Social Acceptance Built on Trust and Engagement KEY PRINCIPLES ▪ Proactively engage stakeholders ▪ Develop relationships based on inclusion, transparency and integrity ▪ Act with humility and a willingness to listen MINE LIFECYCLE ▪ Integrate stakeholder considerations into managing risks ▪ Develop
Slide 33: Governance Underpins Sustainability Strategy
Governance Underpins Sustainability Strategy SUSTAINABILITY GOVERNANCE AT NEWMONT SHORT-TERM INCENTIVE PLAN BOARD OF DIRECTORS ▪ Oversight, advice and counsel on key sustainability matters ▪ Dedicated Safety & Sustainability Committee Environment, 20% Health and Safety Sustainability & Governance EX
Slide 34: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS Tom Palmer Rob Atkinson Nancy Buese Greg Boyce, Chair Bruce R. Brook Maura Clark Matthew Coon Come President and CEO EVP and COO EVP and CFO Steve Gottesfeld Nancy Lipson René Médori Julio Quintana Susan Story Jane Nelson EVP a
Slide 35: Executive Compensation Structure
Executive Compensation Structure BALANCED AND WEIGHTED TOWARD DELIVERY OF RESULTS DECEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 35
Slide 36: Robust Reserves in Top-Tier Jurisdictions
Robust Reserves in Top-Tier Jurisdictions REPLACED 80 PERCENT OF DEPLETION IN 2020 GOLD GOLD EQUIVALENT OUNCES Africa Silver 12% 12% North America 35% Other Australia 94 Moz 65 Moz 13% 20% Gold Reserves* & GEO Reserves* & 101 Moz 107 Moz Gold Resources** GEO Resources** Copper South America 75% 33%
Slide 37: Exploration is a Core Expertise and Investment Priority
Exploration is a Core Expertise and Investment Priority EXPLORATION IS THE FOUNDATION FOR GROWING RESERVES AND SUSTAININ G PRODUCTION 28 Exploration Success Discoveries 338 Geoscientists Sector-Leading Team Underpinned by a Proven Operating Model Technology Cutting Edge Exploration Technologies Safe
Slide 38: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF 59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV CENTRALIAN GOL
Slide 39: Nevada Joint Venture Processes
Nevada Joint Venture Processes For contributing excluded assets Four Mile (Barrick), Fiberline (Newmont) and Mike (Newmont): ▪ Party that owns asset has obligation to contribute upon completion of successful Feasibility Study, which requires a project IRR of at least 15% ▪ Feasibility Study must be
Slide 40: 2022 Consolidated Expense and Capital Outlook
2022 Consolidated Expense and Capital Outlook GUIDANCE METRIC ($M) (+/- 5%) 2022 2023 2024 2025 2026 Consolidated Sustaining Capital $1,000 $900 – $1,100 $900 – $1,100 $900 – $1,100 $900 – $1,100 Consolidated Development Capital $1,400 $1,300 – $1,500 $1,100 – $1,300 $400 – $600 $100 – $300 Total Co
Slide 41: 2022 Site Outlook as of December 2, 2021
2022 Site Outlooka as of December 2, 2021 a) 2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of December 2, 2021. Outlook is based upon certain assumptions, including, but not limited t
Slide 42: 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 others to understand the results of the c
Slide 43: 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 44: 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 45: Attributable Free cash flow
Attributable Free cash flow Management uses Attributable Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations that are attributable to the Company. Attributable Free Cash Flow is Net cash provided by (used in) operating activities after deducting net cash flows from o
Slide 46: All-in Sustaining Costs
All-in Sustaining Costs Newmont has developed 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 performance and t
Slide 47: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Three Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septem
Slide 48: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Nine Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septemb
Slide 49: Gold All-in Sustaining Costs – 2022 Outlook
Gold All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Gold AISC outlook to the 2022 Gold CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Sec
Slide 50: Co-Product All-in Sustaining Costs – 2022 Outlook
Co-Product All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Co-product AISC outlook to the 2022 Co-Product CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Sect
Slide 51: Total GEO All-in Sustaining Costs – 2022 Outlook
Total GEO All-in Sustaining Costs – 2022 Outlook A reconciliation of the 2022 Total GEO AISC outlook to the 2022 Total GEO CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Section
Slide 52: Net Debt to Adjusted EBITDA Ratio
Net Debt to Adjusted EBITDA Ratio Management uses net debt to Adjusted EBITDA as non-GAAP measures to evaluate the Company’s operating performance, including our ability to generate earnings sufficient to service our debt. Net debt to Adjusted EBITDA represents the ratio of the Company’s debt, net o
Slide 53: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-Q for the quarter ended September 30, 2021, and with the Cautionary Statement on slide 2 and the following notes below Outlook Assumptions. Outlook and projections use
Slide 54: Endnotes
Endnotes Reserves Estimates: The reserves stated in this presentation were prepared in compliance with Industry Guide 7 published by the United States SEC and represent the amount of gold, copper, silver, lead and zinc that we estimated, at December 31, 2020, could be economically and legally extrac
Slide 55: Endnotes
Endnotes Free Cash Flow. Free cash flow or FCF is a non-GAAP metric and is generated from Net cash provided from operating activities of continuing operations less Additions to property, plant and mine development. See appendix for more information and for a reconciliation to the nearest GAAP metric