Newmont Corporation · NYSE:NEM
Newmont — Q2 2024 Earnings Presentation
29 slides from Newmont's earnings presentation, Jul 25, 2024
Slide 1: Second Quarter 2024 Earnings
Second Quarter 2024 Earnings July 25, 2024 SECOND QUARTER 2024 EARNINGS NEWMONT CORPORATION 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements, Including Outlook
Cautionary Statement Regarding Forward Looking Statements, Including Outlook 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 to
Slide 3: Executing Safety Refresh at Managed Operations
Executing Safety Refresh at Managed Operations Returning to a Fatality-Free Work Environment ▪ Performing a systematic review of Safety and Risk Management systems and processes ▪ Reviews designed to identify challenges and key areas for improvement ▪ Leveraging review findings to reinvigorate our s
Slide 4: Q2 2024 Highlights
Q2 2024 Highlights THE NEW WORLD-CLASS DELIVERING DRIVING Sustainability Standard Portfolio Synergies Capital Allocation ▪ Executing safety refresh at all ▪ Produced 1.6M attributable ▪ Delivered $205M in synergies to ▪ Advanced key near-term projects managed operations; ounces of gold* and 477k GEO
Slide 5: On Track to Deliver Initial $500M of Synergies
On Track to Deliver Initial $500M of Synergies* PROGRESS TOWARD SYNERGY Entering the delivery phase at Lihir, COMMITMENT ($M) ▪ Cadia and Red Chris G&A Supply Chain Full Potential $500M FULL ▪ ~$185M identified at Cadia and POTENTIAL * Red Chris with potential upside ▪ Identified >$100M from portfol
Slide 6: Operational Update
Newmont OPERATIONAL UPDATE SECOND QUARTER 2024 EARNINGS NEWMONT CORPORATION 6
Slide 7: Solid Q2 Performance from Managed Tier 1 Assets
Solid Q2 Performance from Managed Tier 1 Assets* TANAMI BODDINGTON PEÑASQUITO ▪ Delivered higher production as ▪ Consistent production as stripping ▪ Delivered strong gold and zinc grades planned continues in the North and South pits from the Chile Colorado pit in Q2 ▪ Expect to access higher-grade
Slide 8: Advancing Key Projects in Execution in Q2
Advancing Key Projects in Execution in Q2 TANAMI EXPANSION 2 1.5km deep production shaft, reducing operating costs by ~30% through efficiency improvements ▪ Progressing concrete lining in lower section of the shaft and the construction of underground infrastructure and surface facilities AHAFO NORTH
Slide 9: Financial Performance
Newmont FINANCIAL PERFORMANCE SECOND QUARTER 2024 EARNINGS NEWMONT CORPORATION 9
Slide 10: Q2 2024 Financial Performance
Q2 2024 Financial Performance Adjusted Net Revenue Adjusted EBITDA * GAAP Net Income Income * $4.4B $2.0B $0.74/sh $0.72/sh Cash from Capital Cash & Cash Operations Expenditures Free Cash Flow * Equivalents ** $1.4B $800M $594M $2.8B Well-Positioned to Deliver Improved Financial Results in H2 2024 *
Slide 11: On Track to Deliver 2024 Guidance
On Track to Deliver 2024 Guidance* Tier 1 Portfolio* Managed Non-Managed Portfolio Non-Core Operations Operations** Total Assets A T T RIB UT A B LE GOLD PRODUCTION 4.1 1.5 5.6 1.3 (Moz) A T T RIB UT A B LE CO-PRODUCT GEO PRODUCTION 1.9 – 1.9 0.05 (Moz) GOLD ALL-IN SUSTAINING COST *** $1,250 $1,440
Slide 12: Shareholder-Focused Capital Allocation Strategy
Shareholder-Focused Capital Allocation Strategy 1 Financial Flexibility ~$7.0B ~$3.0B ~$8.0B TARGET LIQUIDITY* TARGET CASH* TARGET DEBT BALANCE** 2 Sustainable Investment ~$1.3B ANNUAL DEVELOPMENT CAPITAL*** 3 Return of Capital $1/share $1.0B ANNUALIZED BASE DIVIDEND* SHARE-REPURCHASE PROGRAM** Subj
Slide 13: Closing Remarks
Newmont CLOSING REMARKS SECOND QUARTER 2024 EARNINGS NEWMONT CORPORATION 13
Slide 14: Delivering on Our Key Commitments
Delivering on Our Key Commitments THE NEW WORLD-CLASS DELIVERING DRIVING Sustainability Standard Portfolio Synergies Capital Allocation The Industry’s Leading Gold and Copper Business* *Referring to the gold industry, based on gold and copper reserves and resources. SECOND QUARTER 2024 EARNINGS NEWM
Slide 15: Appendix
Newmont APPENDIX SECOND QUARTER 2024 EARNINGS NEWMONT CORPORATION 15
Slide 16: Basis For Disciplined 2024 Outlook
Basis For Disciplined 2024 Outlook PRICING ASSUMPTIONS AND SENSITIVITIES (as of February 22, 2024) ASSUMPTION CHANGE (-/+) REVENUE AND COST IMPACTS ($M)** Tier 1 Portfolio Total Newmont Gold ($/oz) $1,900 $100 $550 $675 Australian Dollar $0.70 $0.05 $150 $190 Canadian Dollar $0.75 $0.05 $40 $100 Oil
Slide 17: 2024 Consolidated Expense and Capital Outlook
2024 Consolidated Expense and Capital Outlook GUIDANCE METRIC 2024E Sustaining Capital ($M) Managed Tier 1 Portfolio $1,210 Non-Managed Tier 1 Portfolio $290 Total Tier 1 Portfolio $1,500 Non-Core Assets $300 Total Newmont Sustaining Capital* $1,800 Development Capital ($M) Managed Tier 1 Portfolio
Slide 18: Adjusted net income (loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: (1) Per share measures may not recalculate due to rounding. (2) Loss on assets held for sale, included in Loss on assets held for sale, represents the loss record
Slide 19: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: (1) Loss on assets held for sale, included in Loss on assets held for sale, represents the loss recorded for the six non-core assets and the development project t
Slide 20: Free cash flow
Free cash flow The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used
Slide 21: 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 22: Costs Applicable to Sales
Costs Applicable to Sales Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated
Slide 23: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 24: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 25: Gold All-In Sustaining Costs - 2024 Outlook
Gold All-In Sustaining Costs - 2024 Outlook A reconciliation of the 2024 Gold AISC outlook to the 2024 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 26: 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 27: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with Newmont’s Form 10-Q for the quarter ended June 30, 2024, expected to be filed on, or about, July 25, 2024. Investors are reminded that expectations regarding outlook and guidance, including f
Slide 28: Endnotes
Endnotes Portfolio Optimization. The announced portfolio optimization includes expected asset divestitures and expected portfolio re-sequencing and thus are expectations and thus “forward-looking statements” subject to risks, uncertainties and other factors which may cause such divestitures to occur
Slide 29: Endnotes
Endnotes Past Performance. Past performance metrics and figures included in this presentation are given for illustrative purposes only and should not be relied upon as (and are not) an indication of Newmont’s views on its or Newcrest’s future financial performance or condition or prospects (includin