Newmont Corporation · NYSE:NEM
Newmont — Q2 2024 Earnings Presentation
47 slides from Newmont's earnings presentation, Jul 25, 2024
Slide 1: Investor Presentation Second Quarter 2024
Investor Presentation Second Quarter 2024 INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 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: The Industry's Leading Gold and Copper Business
The Industry’s Leading Gold and Copper Business* 10 Tier 1 Operations ** $1,200/oz All-in Sustaining Costs ** 6 World-Class Copper-Gold Projects $1.3B Annual Development Capital ** $1/share Annualized Base Dividend ** $1B Share Repurchase Program ** *Referring to the gold industry, based on gold and
Slide 4: Delivering on Our Clear and Consistent Strategy
Delivering on Our Clear and Consistent Strategy Transaction Commitments Today Current Focus The New SUSTAINABILITY STANDARD Newmont Leaders at Each Site Implementing Fatality Risk Management Program* 10 Tier 1 Operations* Delivering >$2B Cash from Portfolio Optimization World-Class PORTFOLIO 6 Antic
Slide 5: Go-Forward Portfolio Focused on Tier 1 Operations
Go-Forward Portfolio Focused on Tier 1 Operations TIER 1 OPERATIONS** NORTH AMERICA Carlin* Cortez* 10 Turquoise Ridge* Leading portfolio of Tier 1 assets to support decades Brucejack of profitable and responsible gold Red Chris AFRICA WORLD-CLASS COPPER-GOLD PROJECTS Ahafo South PAPUA NEW GUINEA LA
Slide 6: Underpinned By Industry-Leading Reserves & Resources
Underpinned By Industry-Leading Reserves & Resources Africa 5% South America Papua New Papua New Guinea 34% 10% South America Guinea 38% 18% North Gold America 15% Copper 128 Moz RESERVES * 14 Mt RESERVES * + + 155 Moz RESOURCES ** 26 Mt RESOURCES ** Australia Australia 37% 23% North America 20% *Fo
Slide 7: Six World Class Copper-Gold Projects
Six World Class Copper-Gold Projects RED CHRIS BLOCK CAVE WAFI-GOL PU BLOCK CAVE YANACOCHA SULFIDES British Columbia Papua New Guinea Peru 2.2Mtonnes Copper Reserves & Resources 4.0Mtonnes Copper Reserves & Resources 1.2Mtonnes Copper Reserves & Resources 7.8Moz Gold Reserves & Resources 12.6Moz Gol
Slide 8: 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 9: Results
Newmont RESULTS INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 9
Slide 10: Q1 2024 Highlights
Q1 2024 Highlights THE NEW WORLD-CLASS DRIVING DELIVERING Sustainability Standard Portfolio Capital Allocation Synergies ▪ Applying fatality investigation ▪ Produced ~1.7M attributable ▪ Declared a common dividend of ▪ Delivered $105M in total synergies findings at all managed ounces of gold* and 48
Slide 11: Q1 2024 Financial Performance
Q1 2024 Financial Performance $4.0B z Revenue Q1 2024 OPERATING CASH FLOWS ($M) $1,442 $1.7B z EBITDA* Adjusted $0.15 /sh. z Income GAAP Net $(291) One-Off $0.55 /sh. z Net Income * Adjusted $(193) $(84) $776 $(59) $(39) $776M z Cash from Operations $850M Capitalz Expenditures $(74)M z Free Cash Flo
Slide 12: 2024 and Long-Term Outlook
Newmont 2024 AND LONG-TERM OUTLOOK INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 12
Slide 13: Integrate and Deliver in 2024
Integrate and Deliver in 2024 TANAMI BODDINGTON PEÑASQUITO Maximize Material Movement Progress Laybacks and Improve Progress Gold Layback and Deliver from Deeper Underground Truck Productivity Strong Silver, Lead and Zinc AHAFO CADIA LIHIR Replace Girth Gear and Increase Complete Next Block Cave and
Slide 14: Tier 1 Assets Realizing Full Potential
Tier 1 Assets Realizing Full Potential TANAMI BODDINGTON PEÑASQUITO Efficient Access to Prolific Ore Body at Higher Gold and Copper Grades Higher Proportion of Gold in the Depth from Tanami Expansion 2 from both the North and South Silver, Lead and Zinc Mix at this Production Shaft Pits at this full
Slide 15: 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 ATTRIBU T AB L E GOLD PRODUCTION 4.1 1.5 5.6 1.3 (Moz ) ATTRIBU T AB L E CO-PRODUCT GEO PRODUCTION 1.9 – 1.9 0.05 (Moz ) GOLD ALL-IN SUSTAINING COST *** $1,250 $1,440 $1,3
Slide 16: Managed Tier 1 Portfolio Drives High Value Growth
Managed Tier 1 Portfolio Drives High Value Growth ATTRIBUTABLE GOLD EQUIVALENT (GEO) PRODUCTION * Moz 8.3M 10.0 Gold Equivalent Ounces in 2028E * * 6.7Moz z Gold 8.0 145kt z Copper 6.0 25Moz z Silver 4.0 85kt z Lead 2.0 165kt z Zinc - 2023 NEM + 2024E 2025E 2026E 2027E 2028E NCM**** 2kt z Molybdenum
Slide 17: Margin Expansion Drives Free Cash Flow Growth
Margin Expansion Drives Free Cash Flow Growth ALL-IN SUSTAINING COSTS* DEVELOPMENT CAPITAL $/oz $B $1,400 $1.5 $1,200 $1.0 $1,000 $0.5 $800 $- 2023 NEM + 2024E 2025E 2026E 2027E 2028E 2023 NEM + 2024E 2025E 2026E 2027E 2028E NCM** NCM** Reducing Costs and Maintaining Capital Discipline *All-In Susta
Slide 18: Basis For Disciplined 2024 Outlook
Basis For Disciplined 2024 Outlook PRICING ASSUMPTIONS AND SENSITIVITIES (as of February 22, 2024) ASSUMPTION CHANGE (-/+) REVENUE AND COST IMPACTS ($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 19: Delivering $500M of Synergies by End of 2025
Delivering $500M of Synergies by End of 2025* PROGRESS TOWARD SYNERGY ▪ >$150M identified at Lihir with COMMITMENT ($M) FULL potential upside G&A Supply Chain Full Potential $500M POTENTIAL* ▪ Initial phases in progress at Cadia, Red Chris, and Brucejack $230M $335M ▪ Improved terms and pricing SUPP
Slide 20: Continuous Improvement
Newmont CONTINUOUS IMPROVEMENT INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 20
Slide 21: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement DIAGNOSE DESIGN DELIVER REFRESH Proven integrated operating model with deep bench of experienced leaders and technical experts Robust governance structure drives stable, predictable, and sustainable performance Full Potential program engrained in Newmont
Slide 22: Established Operations Support Networks (OSNs)
Established Operations Support Networks (OSNS) Monitor Coach Intervene Sustain Supporting operations through centralized network of world- class subject matter experts Providing expert data and analytics through a consistent ASSET platform to produce improved performance at operations MINING PROCESS
Slide 23: Projects in Execution
Newmont PROJECTS IN EXECUTION INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 23
Slide 24: Ahafo North: Best Unmined Deposit in West Africa
Ahafo North: Best Unmined Deposit in West Africa ▪ Open pit mine, stand-alone mill for processing 4.1Mozs of Reserve and 1.3 Mozs of Resource ▪ 13-year mine life with ~300koz of average annual production over the first five years (2026 – 2030) ▪ First five-year CAS of $600-$700/oz and AISC of $800-
Slide 25: Cadia Block Caves: Two Panel Caves in Execution
Cadia Block Caves: Two Panel Caves in Execution ▪ Two caves to recover 5.9 Mozs of gold Reserves and 1.3 Mtonnes of copper Reserves ▪ First ore has been delivered from the first panel cave (PC2- 3), and development is underway at the second panel cave (PC1-2) ▪ The newly-acquired project is currentl
Slide 26: Tanami Expansion 2: Investing In Future Profitability
Tanami Expansion 2: Investing In Future Profitability ▪ Delivers a 1.5km deep production shaft, reducing operating costs by ~30% through efficiency improvements ▪ Enables future processing of ~3.3Mtonnes of ore per year ▪ Annual production increase of 150koz – 200koz for the first five full years, b
Slide 27: Sustainability
Newmont SUSTAINAB ILITY INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 27
Slide 28: The Gold Sector's Recognized Sustainability Leader
The Gold Sector’s Recognized Sustainability Leader SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 100% 22 #1 A- Percentile ranking global ESG Risk Rating measures exposure and Most transparent company in CDP Climate Scores reflective of metals and mining sector management of material ESG risks*
Slide 29: Significant Milestones in Our Sustainability Journey
Significant Milestones in Our Sustainability 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 Chie
Slide 30: Committed to Leading ESG Practices
Committed to Leading ESG Practices DEMONSTRATING NEWMONT’S DEDICATIO N TO ACCOUNTABILITY AND TRANSPARENCY Launched 20th Annual Sustainability Report in April 2024, a transparent review of ESG performance and the issues and metrics that matter most to stakeholders Published 3rd Annual Climate Report
Slide 31: 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 20% Health Environment, and Safety Sustainability & Governance Ex
Slide 32: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 32
Slide 33: Appendix
Newmont APPENDIX INV ES TOR PRES ENTATION – Q2 2024 NEWM ONT CORPORA TION 33
Slide 34: 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 35: 2024 Outlook by Site as of February 22, 2024
2024 Outlooka by Site as of February 22, 2024 Attributable Consolidated Attributable Development Consolidated Attributable Consolidated CAS All-In Sustaining Sustaining Capital Capital 2024 Outlook Production (Koz) Production (Koz) ($/oz) Costsb ($/oz) Expenditures ($M) Expenditures ($M) Managed Tie
Slide 36: 2024 Consolidated Expense and Capital Outlook
2024 Consolidated Expense and Capital Outlook GUIDANCE METRIC 2024E Sustaining Capital ($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 37: Adjusted net income (loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: Three Months Ended March 31, 2024 per share data (1) (1) Per share measures may not recalculate due to rounding. (2) Loss on assets held for sale, included in Los
Slide 38: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: Three Months Ended March 31, 2024 2023 (1) Loss on assets held for sale, included in Loss on assets held for sale, represents the Net income (loss) attributable t
Slide 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction withNewmont’s Form 10-Q for the quarter ended March 31, 2024, expected to be filed on, or about, April 29, 2024. Investors are reminded that expectations regarding outlook and guidance, including
Slide 46: 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 47: 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