Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Investor Day (December 2017)
147 slides from Newmont's investor day presentation, Dec 6, 2017
Slide 1: Newmont Investor Day
Newmont Investor Day December 6, 2017
Slide 2: Safety briefing
Safety briefing New York Stock Exchange Floor 7 – emergency exits You are here December 2017 Newmont Mining Corporation I 2017 Investor Day – Slide 2
Slide 3: Cautionary statement
Cautionary statement 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 be covered by the safe harbor created by such sections a
Slide 4: Gary Goldberg
Gary Goldberg President and Chief Executive Officer
Slide 5: Agenda
Agenda Business outlook Technical outlook Operational outlook 8:30am – 9:30am 9:30am – 10:15am 10:15am – 12:30pm Welcome and safety share Technical fundamentals Operational outlook • Gary Goldberg • Scott Lawson • Tom Palmer Newmont outlook Technology gallery walk • Andrew Woodley • Gary Goldberg •
Slide 6: Proven strategy for long-term value creation
Proven strategy for long-term value creation Improve Deliver underlying business superior operational execution Strengthen Sustain the portfolio global portfolio of long-life assets Create value Lead sector for shareholders in profitability and responsibility December 2017 Newmont Mining Corporation
Slide 7: Leading performance relies on operational execution
Leading performance relies on operational execution Total injury rates down 53% All-in sustaining costs1 down 22% $909 0.38 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 YTD * YTD * Top sustainability performance in mining sector for three consecutive years * YTD figures used in this p
Slide 8: Global portfolio of long-life assets
Global portfolio of long-life assets Operations and sustaining projects Improvements since 2012 Current projects 3 new lower cost mines Mid-term projects Long-term projects 9 profitable expansions Average project IRR >20% $2.8B in non-core asset sales North America Carlin Improved value and risk pro
Slide 9: Leading project pipeline and track record
Leading project pipeline and track record Greenfields Conceptual/ Scoping Prefeasibility/ Colombia Feasibility Definitive Long Canyon Ph 2 Feasibility Yukon Execution Yanacocha Sulfides Pete Bajo Expansion Morrison Eastern Great Basin Awonsu Northwest Exodus Greater Leeville Tanami power Andes Ahafo
Slide 10: Stability extends beyond five year outlook
Stability extends beyond five year outlook Projected production profile (Moz)* Industry-leading long-term pipeline 6.0 Divested Current Mid-term Prefeasibility projects projects projects ** 5.0 4.0 3.0 Existing assets and sustaining projects 2.0 1.0 3 FCF/share up $3.60 since 2012 - 2012 2013 2014 2
Slide 11: Superior Reserves and returns
Superior Reserves and returns 128oz 12yrs 72% 1.20g/t Reserves per Kshare Operating Reserves Reserves based in Reserve grade vs gold sector vs gold sector US, Australia, vs 2016 mined grade average of 77oz/Kshares* average of 9.9 yrs** Canada and Western of 1.15 g/tonne vs gold sector Europe vs gold
Slide 12: Costs improve on productivity and portfolio gains
Costs improve on productivity and portfolio gains Gold all-in sustaining cost outlook ($/oz)* $1,099 $996 $1,025 $933 $912 – $950 $970 $970 $970 $970 965 – – – – – 900 870 870 870 870 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E – 2022E 2020E 2021E Average 2022E * Consolidated all-in sustaining c
Slide 13: Mine and mill improvements boost production
Mine and mill improvements boost production Attributable gold production outlook (Moz) 5.4 5.4 5.4 5.0 – 4.9 – – 5.1 5.1 5.1 4.7 4.6 5.0 4.9 4.9 – – – 4.6 4.6 4.6 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E – 2022E 2020E 2021E Average 2022E December 2017 Newmont Mining Corporation I 2017 Investo
Slide 14: Capital discipline maintained
Capital discipline maintained Total capital outlook ($M) Development capex added with project approval $1,615 Development capital Sustaining capital $1,337 $1,068 $1,015 $1,000 $990 – – 900 890 $830 – 730 $680 $680 $680 – – – 580 580 580 2013A 2014A 2015A 2016A 2017E 2018E 2019E 2020E – 2022E 2020E
Slide 15: Leading in profitability and responsibility
Leading in profitability and responsibility Safe, stable and profitable gold production over longer horizon Superior operational Continuous cost and productivity improvement through Full Potential execution Leading talent and robust and diverse leadership pipeline Ongoing margin growth across four a
Slide 16: Randy Engel
Randy Engel Executive Vice President, Strategic Development
Slide 17: Global presence conveys competitive advantage
Global presence conveys competitive advantage • Global footprint in stable jurisdictions • Financial flexibility to invest in most promising growth options • Technical expertise to develop profitable operations in broad range of gold districts • Superior environmental, social and governance performa
Slide 18: Improved portfolio mine life, costs and risk profile
Improved portfolio mine life, costs and risk profile Divested Reinvested PTNNT, Midas, Merian, Long Assets Jundee, Penmont, Canyon, CC&V Waihi Costs1 $800 – $900/oz Below $700/oz AISC down >$100/oz Production 630Koz/year ~800Koz/year Mine life < 5 years > 10 years Mine life doubled Higher technical
Slide 19: Global dynamics affecting the market
Global dynamics affecting the market • Geopolitical conflict – impacting economies, security and migration patterns • New paradigm for investors – greater accountability; sharper focus on long-term value creation • Demographic shifts – continued urbanization and wealth trends in Asia • Technology tr
Slide 20: Disciplined approach to growth
Disciplined approach to growth Priorities: • Grow margins, Reserves & Resources through coordinated exploration, projects, transactions • Leverage strong balance sheet and stable cash flow profile through 2024 • Set stage for longer-term growth for 2025 and beyond Integrated approach Higher Explorat
Slide 21: Advancing exploration agreements in key districts
Advancing exploration agreements in key districts • Plateau (Canadian Yukon) – 2,973m of diamond drilling, stake enlarged to 662km2 in 2017 • Continental (Colombia) – refining project approach, resource confidence and exploration upside • Esperance (French Guiana) – exploring promising mineralized t
Slide 22: Nancy Buese
Nancy Buese Executive Vice President and Chief Financial Officer
Slide 23: Balance sheet among the best in the gold sector
Balance sheet among the best in the gold sector Growing margins, Reserves and Resources • ~$6.7B invested into profitable growth* Net debt to adjusted EBITDA of 0.4x • $2.8B of gross debt repaid* Maintaining investment grade balance sheet • Liquidity of $5.9B as of Q3 2017 Returning cash to sharehol
Slide 24: Investing in profitable projects across the cycle
Investing in profitable projects across the cycle Project Mine life (yrs) Cost (AISC/oz) Production (Koz/yr) Capital ($M) IRR (%) Merian (75%) 15 $650 – $750 300 – 375 ~$525 >25% Long Canyon Phase 1 8 $500 – $600 100 – 150 ~$225 >25% Tanami expansion +3 $700 – $750 ~ 80 ~$120 >35% Northwest Exodus +
Slide 25: Continuing to exercise capital discipline
Continuing to exercise capital discipline Rigorous risk management approach aligns decision making • Anticipate and manage sociopolitical, governance, execution and cyber risk • Regional hurdle rates based upon proprietary country risk model All investments subject to independent valuation process •
Slide 26: Conservative plan with upside leverage
Conservative plan with upside leverage 2018 CAS breakdown Royalties & Conservative and robust planning process other 5% • Plans built-up from $800/oz case to maximize value, optionality Diesel 9% Potential upside includes: Power 9% Labor & services • Further cost and efficiency improvements 45% • FX
Slide 27: Lower interest expense, higher investments in future
Lower interest expense, higher investments in future Guidance metric 2017E2 2018E2 G&A ($M) 215 – 240 215 – 240 Interest Expense ($M) 210 – 250 175 – 215 DD&A ($M) 1,225 – 1,325 1,225 – 1,325 Exploration & Advanced Projects ($M) 325 – 375 350 – 400 Sustaining Capital ($M) 575 – 675 600 – 700 Tax Rat
Slide 28: Responsible, sustainable value creation
Responsible, sustainable value creation Forging early, mutually Reducing energy Concurrent reclamation plans Mine closure beneficial emission integrated into annual and long- planning relationships intensity term mine plans Exploration Development Construction Production Closure Post-Closure Ongoing
Slide 29: Financial strength paves way for value creation
Financial strength paves way for value creation Committed to investment grade balance sheet Net debt to adjusted EBITDA* Manageable debt maturities 1.0x • Next tranche of $626M due in October 2019 • Weighted average cost of debt ~5% 0.4x Focused on sustainable returns • ~$2.5B of free cash flow gene
Slide 30: Dividend aligned to long-term value creation
Dividend aligned to long-term value creation Stable and sustainable dividend Annualized dividend ($/share) • Reflects stable long-term production >50% • Reiterates confidence in cash flow stability • Removes gold price-link Aligns with capital priorities $0.30 • Incorporates ongoing investment in gr
Slide 31: Questions?
Questions?
Slide 32: Scott Lawson
Scott Lawson Executive Vice President & Chief Technology Officer
Slide 33: Agenda
Agenda Business outlook Technical outlook Operational outlook 8:30am – 9:30am 9:30am – 10:15am 10:15am – 12:30pm Welcome and safety share Technology outlook Operational outlook • Gary Goldberg • Scott Lawson • Tom Palmer Newmont outlook Technology gallery walk • Andrew Woodley • Gary Goldberg • Grig
Slide 34: Investing in technologies based on value and viability
Investing in technologies based on value and viability Sensors Data analytics Advanced B-Tag optimizes Centralized asset process control productivity; fatigue health monitoring Reduces variability, monitors boost safety improves reliability improves productivity Automation Virtual reality Remote ope
Slide 35: Digital assessments guide fit-for-purpose approach
Digital assessments guide fit-for-purpose approach Autonomous Advanced Centralized Connected Advanced Smart Mine fleet process control support worker analytics Apply control Provide a Enable Leverage Provide insight Maximize use of logic & AI to consistent site improved wearable & foresight producti
Slide 36: Data quality drives differentiation
Data quality drives differentiation December 2017 Newmont Mining Corporation I 2017 Investor Day – Slide 36
Slide 37: Talent is key competitive advantage
Talent is key competitive advantage Grigore Simon Marcelo Godoy Lauren Hafla Mike Wundenberg Senior Vice President, Vice President, Resource Director, Group Executive, Exploration Evaluation and Mine Metallurgical Services Asset Management, Planning Business Improvement Gallery walk spotlights diffe
Slide 38: Technology gallery walk
Technology gallery walk
Slide 39: Mine Monitoring & Control
Mine Monitoring & Control Overview • People delivering globally consistent, fully integrated technology solutions Plan Do • Structured, agile approach aligned with priorities of digital roadmap Act Check • Value focused improvements in safety, reliability, efficiency & performance Achievements to da
Slide 40: Strategic Mine Planning
Strategic Mine Planning Overview • Proprietary optimization tools customized for specific mining complexes and value drivers • Optimization through the value chain flexing mining, processing and projects simultaneously • Leveraging advanced combinatorial optimization algorithms and know-how Which re
Slide 41: Hydrometallurgy
Competitive Advantage through Technology Overview y through APC liver lue De ed Va c • World class expertise in four technical pillars Enhan Water Treatment – Comminution, Flotation, Hydrometallurgy, Water Hydrometallurgy Comminution Flotation • Success underpinned by: – State of the art laboratory
Slide 42: Exploration Technology
Exploration Technology Overview Build competitive advantage in exploration through integrated proprietary technologies leading to increased discovery rates and reduced exploration costs • Area selection • Area screening and fingerprinting • Undercover Exploration Targeting • 3D Mineralization Vector
Slide 43: Tom Palmer
Tom Palmer Executive Vice President & Chief Operating Officer
Slide 44: Agenda
Agenda Business outlook Technical outlook Operational outlook 8:30am – 9:30am 9:30am – 10:15am 10:15am – 12:30pm Welcome and safety share Technical fundamentals Operational outlook • Gary Goldberg • Scott Lawson • Tom Palmer Newmont outlook Technology gallery walk • Andrew Woodley • Gary Goldberg •
Slide 45: Global portfolio of long-life assets
Global portfolio of long-life assets 68.5 million ounces in total Reserves Highlights % of Reserves Global portfolio of long-life assets Continued Full Potential delivery Stable platform for future growth Strong leadership and pipeline North America Carlin Culture of collaboration − NW Exodus Twin C
Slide 46: Strong bench of experienced operators
Strong bench of experienced operators Andrew Woodley Alwyn Pretorius Alex Bates Dean Gehring RSVP, North America RSVP, Africa RSVP, Australia RSVP, South America • 20 years’ • 20 years’ • 25 years’ • 25 years’ experience experience experience experience • Mining engineer • Mining engineer • Civil en
Slide 47: Targeting differentiation across all strategic pillars
Targeting differentiation across all strategic pillars Strategic pillar Focus Target Leverage collective experience and Leading safety performance and controls to lower risks and exposures culture with zero fatalities Health & Safety Improve the value and risk profile of Leading productivity, capita
Slide 48: Laying the foundation for ongoing success
Laying the foundation for ongoing success Consistent operating site organization, culture and work management systems • Developing broader capabilities and commercial acumen among operating leaders • Improved talent management systems, succession planning and diversity • Culture of trust – speaking
Slide 49: Accelerating Full Potential to improve margins
Accelerating Full Potential to improve margins Sustainable improvements consistently outstrip targets; $1.5B in improvements to date8 • Benefits include globally consistent metrics and reporting, communities of practice • Outlook reflects advanced projects only; forecast to more than offset inflatio
Slide 50: 2018 earnings and cash flow weighted to Q4
2018 earnings and cash flow weighted to Q4 • North America – higher stripping in first half; Silverstar production in second half • Australia – stable production with Tanami and KCGM offsetting Boddington stripping campaign • South America – mine sequencing in first three quarters; reaching higher g
Slide 51: Optimizing projects to improve long-term delivery
Optimizing projects to improve long-term delivery Greenfields Conceptual/ Scoping Prefeasibility/ Colombia Feasibility Definitive Long Canyon Ph 2 Feasibility Yukon Execution Yanacocha Sulfides Pete Bajo Expansion Morrison Eastern Great Basin Awonsu Northwest Exodus Greater Leeville Tanami power And
Slide 52: Andrew Woodley
Andrew Woodley Regional Senior Vice President, North America
Slide 53: North America continues as cornerstone
North America continues as cornerstone Five operating complexes and 50-year track record of profitability and innovation • Higher stripping at Twin, Carlin partly offset by new underground production • Pursuing profitable longer-term growth at Carlin, Long Canyon, Plateau • Increasing value through
Slide 54: Carlin refining mine plans and growth prospects
Carlin refining mine plans and growth prospects Largest complex has 3 surface, 4 UG mines >$10M savings8 in UG mines • Surface mine plans modified to improve value • Silverstar production included in 2018 and 2019 • Semi-autonomous mining at Leeville/NW Exodus Via payload and haulage, fleet producti
Slide 55: Twin Creeks maximizing asset value
Twin Creeks maximizing asset value Oxide and refractory ores from 2 pits and TRJV >$35M savings8 in surface mines • Stripping campaign from 2018 to 2020 • Resequencing laybacks to improve value • Twin UG commercial production in mid-2018 Via haulage, maintenance, mine plan and ore control improvemen
Slide 56: Phoenix optimizing mine sequencing
Phoenix optimizing mine sequencing Complex deposit with gold, copper, silver ores >$9M in value creation8 • Revised concentrate contracting strategy Mine • Focus on gold zones drives improvements in 2018 Sales Mill • Higher grade copper phases begin in 2020 Via value chain strategy in 2017 Phoenix C
Slide 57: Long Canyon accelerating production
Long Canyon accelerating production Phase 1 completed early, 20% under budget ~$10M savings8 in supply chain • Optimizing mine plans and leach pad expansion • Phase 2 studies and permitting underway • Mineralization open in all directions Via renegotiated contracts and lower consumption in 2017 Long
Slide 58: Cripple Creek & Victor leveraging regional synergies
Cripple Creek & Victor leveraging regional synergies Ore processed via valley leach, high-grade mill >$25M in value creation8 • Working to offset lower leach, mill grade in 2018 • Secure value by shipping concentrates to Nevada ̶ Expected to improve recoveries and add FCF Via downtime, recovery and
Slide 59: Alwyn Pretorius
Alwyn Pretorius Regional Senior Vice President, Africa
Slide 60: Africa delivering improved performance and growth
Africa delivering improved performance and growth Ghana’s largest gold producer, responsible for 32% of country’s total production • Mine plan optimization, improved mill throughput and recovery delivering lower unit costs • Subika Underground and Ahafo Mill Expansion progressing on course • Advanci
Slide 61: Ahafo expansions are gateway to UG district
Ahafo expansions are gateway to UG district OP/UG mines feed conventional process plant Mill throughput up 4% • Improved costs via mine design, mill throughput Harder ore 884 • Commercial production – Subika UG (H2 2018); 849 841 Ahafo Mill Expansion (H2 2019) 2015 2016 2017E • Drilling underway to
Slide 62: Akyem offsetting lower grades, harder ore
Akyem offsetting lower grades, harder ore Surface mine feeds conventional process plant Mill throughput up 6% Harder ore • Harder primary ore in 2018 impacts costs 1,085 • Advanced process control system enabling 1,025 1,039 increased throughput and recovery rates 2015 2016 2017E • Drilling below ex
Slide 63: Ahafo North represents prospective new district
Ahafo North represents prospective new district 9 surface deposits along 14 km strike length • Located 30 km north of Ahafo • 3.3Moz Reserve and 1Moz Resource* • Stand-alone mill to process ~3.5 to 4Mt/yr • Permitting and outreach underway • Decision expected in H2 2019 with 3-year development sched
Slide 64: Alex Bates
Alex Bates Regional Senior Vice President, Australia
Slide 65: Australia growing margins and reserves
Australia growing margins and reserves Australia’s largest gold producer, responsible for 17% of country’s total production • Full Potential eliminates mill constraints, sets new standards for maintenance practices • Advancing profitable underground expansions and surface mine laybacks • Leveraging
Slide 66: Boddington improvements extend life
Boddington improvements extend life 2 pits feed flotation process, produce concentrate Mill recovery up 3% • Higher stripping from 2018 to 2020 Recovery 83.3% 83.7% 81.2% 82.5% • Multiple mill utilization and recovery records set .82 g/t .76 .80 .76 • Mine re-sequencing accelerates laybacks 2014 201
Slide 67: KCGM advancing mine life and growth prospects
KCGM advancing mine life and growth prospects Newmont’s leadership improves profitability Mill throughput up 13% • Remediating impact of west wall slip 13.0 13.1 • Higher grades, throughput and recoveries 11.6 11.6 • Morrison layback expected to add 1.8Moz and 2014 2015 2016 2017E extend life by 5 y
Slide 68: Tanami entering next phase of profitable growth
Tanami entering next phase of profitable growth First expansion delivered on time and budget Grade up 5% • Optimized stope designs result in higher grades 5.7 g/t 5.4 g/t • Lower mining costs >offset increased development 2016 mine plan 2017 mine plan • Advancing resource definition for next expansi
Slide 69: Tanami Power improves performance and risk
Tanami Power improves performance and risk Progressing Tanami Power project to improve costs, reliability and environmental impact • Switching to natural gas expected to lower CO2 emissions by up to 20% • Includes construction and operation of 450km natural gas pipeline and 2 power stations • Expect
Slide 70: Tanami's Expansion 2 taps new discoveries
Tanami’s Expansion 2 taps new discoveries Increases profitable production and extends mine life • Includes production shaft to maximize value from 1,200 – 2,600m below surface; optimizing processing capacity • Staged investment; develop while continuing to optimize resource risk at depth • Decision
Slide 71: Dean Gehring
Dean Gehring Regional Senior Vice President, South America
Slide 72: South America balancing profitability and growth
South America balancing profitability and growth Source of profitable production and growth for nearly 25 years with expanding scope • Lower cost production from Merian offsetting declining oxide profile at Yanacocha • Focus on maximizing profitability and optimizing growth projects • Advancing near
Slide 73: Merian establishes foothold in prospective district
Merian establishes foothold in prospective district Improving mine productivity, growing oxide base Payload up 37% (DMT) • Full Potential delivering improvements in 2018 130 129 124 113 94 • Primary crusher advancing on track • Advancing growth through Sabajo and Amazonia Jun 17 Jul 17 Aug 17 Sep 17
Slide 74: Yanacocha focused on maintaining profitability
Yanacocha focused on maintaining profitability Advancing Quecher Main as bridge to sulfides 80Koz of additional production • Accelerating Full Potential to maintain profitability Re-leach • Higher processing/stockpile costs forecast in 2018 Primary leach • High grade satellite deposits represent ups
Slide 75: Optimizing approach to sulfide development
Optimizing approach to sulfide development Project to develop Yanacocha’s sulfide deposits reaches feasibility study in late 2018 • Potential to extend operational life to 2039 • First phase focuses on developing most profitable deposits to optimize risk and returns • Favorable drilling and process
Slide 76: Questions?
Questions?
Slide 77: Agenda
Agenda Business outlook Technical outlook Operational outlook 8:30am – 9:30am 9:30am – 10:15am 10:15am – 12:30pm Welcome and safety share Technical fundamentals Operational outlook • Gary Goldberg • Scott Lawson • Tom Palmer Newmont outlook Technology gallery walk • Andrew Woodley • Gary Goldberg •
Slide 78: Grigore Simon
Grigore Simon Senior Vice President, Exploration
Slide 79: Focused on high value, near mine options
Focused on high value, near mine options December 2017 Newmont Mining Corporation I 2017 Investor Day I Slide 75
Slide 80: North America remains a core growth area
North America remains a core growth area December 2017 Newmont Mining Corporation I 2017 Investor Day I Slide 76
Slide 81: Long Canyon – advancing Phase 2
Long Canyon – advancing Phase 2 Reserves and Resource (R&R) base Upside Potential • Reserves: 1.2 Moz (17Mt @ 2.1 g/t Au) • 75% of Inventory converted to R&R • Resource*: 2.0 Moz (21Mt @ 3.0 g/t Au) • Mineralization over 5.0km strike length is open Highlights • Resource drilled to Reserves spacing;
Slide 82: Exodus – growing into major underground deposit
Exodus – growing into major underground deposit Reserves and Resource (R&R) base Upside Potential • Reserves: 0.8 Moz (3Mt @ 8.1 g/t Au) • 45% of Inventory converted to R&R • Resource*: 0.3 Moz (2Mt @ 6.1 g/t Au) • Half of +4.0km target drill tested Highlights • 0.8Moz Reserves and 0.5Moz Resource**
Slide 83: Leeville – growing high grade underground deposit
Leeville – growing high grade underground deposit Reserves and Resource (R&R) base Upside Potential • Reserves: 3.8 Moz (12Mt @ 10.3 g/t Au) • 45% of Inventory converted to R&R • Resource*: 0.6 Moz (2Mt @ 10.4 g/t Au) • 2.6km of exploration drift over the next 3 years Highlights • 0.2Moz Reserves an
Slide 84: Delivering on promise in Australia
Delivering on promise in Australia December 2017 Newmont Mining Corporation I 2017 Investor Day I Slide 80
Slide 85: Tanami UG – advancing Tanami Expansion 2
Tanami UG – advancing Tanami Expansion 2 Reserves and Resource (R&R) base Upside Potential • Reserves: 4.5 Moz (23Mt @ 6.0 g/t Au) • 70% of Inventory converted to R&R • Resource*: 1.1 Moz (6Mt @ 4.7 g/t Au) • Extensions and repeating structures Highlights • 2.2 Moz Reserves and 1.2 Moz Resource** ad
Slide 86: Tanami UG – advancing Tanami Expansion 2
Tanami UG – advancing Tanami Expansion 2 Reserves and Resource (R&R) base Upside Potential • Reserves: 4.5 Moz (23Mt @ 6.0 g/t Au) • 70% of Inventory converted to R&R • Resource*: 1.1 Moz (6Mt @ 4.7 g/t Au) • Extensions and repeating structures Highlights • 2.2 Moz Reserves and 1.2 Moz Resource** ad
Slide 87: Growing the underground resource in Africa
Growing the underground resource in Africa December 2017 Newmont Mining Corporation I 2017 Investor Day I Slide 83
Slide 88: Subika - unlocking major underground resource
Subika - unlocking major underground resource Reserves and Resource (R&R) base UG only Upside Potential • Reserves: 1.5 Moz (11Mt @ 4.5 g/t Au) • 65% of Inventory converted to R&R • Resource*: 1.5 Moz (11Mt @ 4.1 g/t Au) • Four ore shoots, all open at depth Highlights • 0.9Moz Reserves and 1.2Moz Re
Slide 89: Ahafo UG - potentially major new blind discovery
Ahafo UG - potentially major new blind discovery Reserves and Resource (R&R) base UG only Upside Potential • Reserves: N/A • 44% of Inventory converted to R&R • Resource*: 1.1Moz (9Mt @ 3.9 g/t Au) • Multiple ore shoots open at depth Highlights • 0.4Moz Resource** additions since 2015 Investor Day •
Slide 90: Akyem UG – maiden underground Resource in 2017
Akyem UG – maiden underground Resource in 2017 Reserves and Resource (R&R) base UG only Upside Potential • Reserves: N/A • 0% of Inventory converted to R&R • Resource: N/A • Mineralization open at depth Highlights • Maiden Resource expected in 2017 • Mineralization extended ~500m below ultimate pit
Slide 91: Extending mine life in South America
Extending mine life in South America December 2017 Newmont Mining Corporation I 2017 Investor Day I Slide 87
Slide 92: Merian – further oxide and UG potential
Merian – further oxide and UG potential Reserves and Resource (R&R) base 100% Upside Potential • Reserves: 5.7 Moz (141Mt @ 1.3 g/t Au) • 65% of Inventory converted to R&R • Resource*: 2.7 Moz (75Mt @ 1.1 g/t Au) • Extensions, high grade UG, brownfields saprolite Highlights • 1.2Moz Reserves and 1.9
Slide 93: Chaquicocha Central – new high grade discovery
Chaquicocha Central – new high grade discovery Reserves and Resource (R&R) base 100% Upside Potential • Reserves: N/A • 70% of Inventory converted to R&R • Resource*: 2.3 Moz (11Mt @ 6.3 g/t Au) • Extensions to the E and NNW; Chaqui Sur Oxides Highlights • 2.3 Moz Resource additions and 1.5Moz (79Mt
Slide 94: Esperance – new business development in Fr. Guiana
Esperance – new business development in Fr. Guiana Reserves and Resource (R&R) base 100% Upside Potential • Reserves: N/A • 0% of Inventory converted to R&R • Resource: N/A • semi-continuous untested soil anomalies over +20km Highlights • Joint Venture earn-in agreement with CME 60km SE of Merian •
Slide 95: Proprietary technologies drive discovery program
Proprietary technologies drive discovery program Oberon/Tanami, Australia, DSG footprint Antonio/Yanacocha NEWDAS and DSG integrated targeting Deep Sensing Geochemistry (DSG) 3D Distributed Acquisition System (NEWDAS) • State-of-the-art proprietary technology • 3D data acquisition system • Depth of
Slide 96: Questions?
Questions?
Slide 97: Gary Goldberg
Gary Goldberg President and Chief Executive Officer
Slide 98: Leading in profitability and responsibility
Leading in profitability and responsibility Safe, stable and profitable gold production over longer horizon Superior operational Continuous cost and productivity improvement through Full Potential execution Leading talent and robust and diverse leadership pipeline Ongoing margin growth across four a
Slide 99: Appendix A: Site fact sheets
Appendix A: Site fact sheets
Slide 100: Carlin site details
Carlin site details 2016 Reserves: 2016 Resources*: 15.0 Moz Gold 5.5 Moz Gold Ownership: 100% Location: West of Elko, Nevada on the Carlin Trend Operations: Four open pits and four underground mines Process: High grade refractory ore processed through a roaster (Mill 6); high grade oxide and transi
Slide 101: Twin Creeks site details
Twin Creeks site details 2016 Reserves: 2016 Resources*: 4.9 Moz Gold 4.1 Moz Gold Ownership: 100% Twin Creeks; 25% TRJV Location: Located 35 miles northeast of Winnemucca, Nevada Operations: Open pit and Turquoise Ridge underground mine Process: High grade refractory ore processed through the Sage
Slide 102: Phoenix site details
Phoenix site details 2016 Reserves: 2016 Resources*: 4.4 Moz Gold 3.5 Moz Gold 1.3 Blbs Copper 0.9 Blbs Copper Ownership: 100% Location: Near the town of Battle Mountain, Nevada Operations: Phoenix open pit and Lone Tree Process: Mill produces gravity gold concentrate and copper/gold flotation conce
Slide 103: Long Canyon site details
Long Canyon site details 2016 Reserves: 2016 Resources*: 1.2 Moz Gold 2.0 Moz Gold Ownership: 100% Location: Located along the eastern flank of the Pequop mountains in NE Nevada, Elko County Operations: Surface Process: Heap leach Products: Gold Key statistics 2015 2016 2017 Outlook 2018 Outlook Att
Slide 104: CC&V site details
CC&V site details 2016 Reserves: 2016 Resources*: 3.4 Moz Gold 2.5 Moz Gold Ownership: 100% Location: Near the towns of Cripple Creek and Victor, Colorado Operations: 4 open pits Process: Historically a valley leach facility; new mill and second valley leach commissioned Products: Gold Key statistic
Slide 105: Merian site details
Merian site details 2016 Reserves*: 2016 Resources*: 5.7 Moz Gold 2.7 Moz Gold Ownership: 75% Location: 66 kilometers south of Moengo, Suriname Operations: Surface Process: conventional mill and standard carbon-in-leach circuit for processing ore Products: Gold Key statistics 2015 2016 2017 Outlook
Slide 106: Yanacocha site details
Yanacocha site details 2016 Reserves*: 2016 Resources*: 4.4 Moz Gold 9.2 Moz Gold 1.6 Blbs Copper Ownership: 51.35% Location: 375 miles north of Lima, Peru in Cajamarca region Operations: 7 open pit mines Process: Four leach pads, three processing facilities and one mill Products: Gold Key statistic
Slide 107: Ahafo site details
Ahafo site details 2016 Reserves: 2016 Resources*: 6.2 Moz Gold 4.6 Moz Gold Ownership: 100% Location: 180 miles northwest of Accra, Ghana Operations: Four open pits; underground mine in development Process: Conventional mill and standard carbon-in-leach circuit for processing ore; mill expansion un
Slide 108: Akyem site details
Akyem site details 2016 Reserves: 2016 Resources*: 3.3 Moz Gold 1.2Moz Gold Ownership: 100% Location: 80 miles northwest of Accra, Ghana Operations: One open pit mine Process: Conventional mill and standard carbon-in-leach circuit for processing ore Products: Gold Key statistics 2015 2016 2017 Outlo
Slide 109: Tanami site details
Tanami site details 2016 Reserves: 2016 Resources*: 4.5 Moz Gold 1.1 Moz Gold Ownership: 100% Location: 342 miles northwest of Alice Springs in the Northern Territory Operations: One underground mine Process: The processing plant current consists of a crushing plant, a grinding circuit, gravity carb
Slide 110: Boddington site details
Boddington site details 2016 Reserves: 2016 Resources*: 11.6 Moz Gold 6.0 Moz Gold 1.2 Blbs Copper 0.8 Blbs Copper Ownership: 100% Location: 81 miles southeast of Perth, Western Australia Operations: Two open pits Process: The milling plant includes a three-stage crushing facility, four balls mills,
Slide 111: Kalgoorlie site details
Kalgoorlie site details 2016 Reserves: 2016 Resources*: 8.3 Moz Gold 0.9 Moz Gold Ownership: 50% Location: 373 miles east of Perth, Western Australia Operations: Fimiston pit (commonly referred to as the Super Pit) and Mt. Charlotte underground mine Process: Two SAG and associated ball mills, as wel
Slide 112: Appendix B: Biographies
Appendix B: Biographies
Slide 113: Management team biographies
Management team biographies Gary Goldberg, President and Chief Executive Officer Gary J. Goldberg was appointed President and Chief Executive Officer and joined the Board of Directors of Newmont Mining Corporation on March 1, 2013. He had served as President and Chief Operating Officer since July 20
Slide 114: Management team biographies
Management team biographies Randy Engel, Executive Vice President Strategic Development Randy Engel was elected Executive Vice President, Strategic Development in September 2008, after having served as Senior Vice President, Strategy and Corporate Development since 2007. Mr. Engel has been with the
Slide 115: Management team biographies
Management team biographies Elaine Dorward-King, Executive Vice President, Sustainability and External Relations Dr. Elaine Dorward-King was elected Executive Vice President, Sustainability and External Relations in March 2013. Prior to joining Newmont, Dr. Dorward-King served as Managing Director o
Slide 116: Management team biographies
Management team biographies Bill MacGowan, Executive Vice President, Human Resources Bill MacGowan serves as Executive Vice President, Human Resources after having been elected Executive Vice President, Human Resources and Communications in 2010. Prior to joining Newmont, Mr. MacGowan served as Chie
Slide 117: Regional Senior Vice President biographies
Regional Senior Vice President biographies Andrew Woodley, Senior Vice President, North America Andrew Woodley became the Regional Senior Vice President North America in January 2017. Prior to joining Newmont, Andrew worked with Rio Tinto for 21 years holding a range of commercial, operational and s
Slide 118: Technical Services biographies
Technical Services biographies Marcelo Godoy, Vice President, Resource Evaluation and Mine Planning With over 20 years of experience, Marcelo holds a PHD in Strategic Mine Planning from the WH Bryan Mining Geology Research Centre in Australia. As the regional leader of Ore Evaluation Services at Gol
Slide 119: Board of Directors biographies
Board of Directors biographies Noreen Doyle, Chair of Board of Directors Noreen Doyle currently serves as Chair of Newmont's Board of Directors. She was the First Vice President of the European Bank for Reconstruction and Development from 2001 to 2005. Ms. Doyle also serves as the Vice Chair and Lea
Slide 120: Board of Directors biographies
Board of Directors biographies J. Kofi Bucknor J. Kofi Bucknor is the Chief Executive Officer of J. Kofi Bucknor & Associates, a Ghanaian corporate finance advisory and propriety investing firm established in 2000. He currently serves on the boards of ARM (Nigeria) and Saham Assurances Limited (Moro
Slide 121: Board of Directors biographies
Board of Directors biographies Veronica Hagen Veronica Hagen is the former President and Chief Executive Officer of Polymer Group, Inc. Ms. Hagen was President and CEO of Sappi Fine Paper North America from 2004 to 2007. Prior to working for Sappi, she served in various executive roles with Alcoa an
Slide 122: Board of Directors biographies
Board of Directors biographies Julio Quintana Julio Quintana formerly served as President and Chief Executive Officer of Tesco Corporation, which supplies oilfield drilling technology, services and equipment, and prior to that served as Tesco’s Chief Operating Officer. He served in various executive
Slide 123: Appendix C: Reserves & Resources
Appendix C: Reserves & Resources
Slide 124: Attributable Gold Reserves, U.S. Units
Attributable Gold Reserves, U.S. Units (1) Attributable Proven, Probable, and Combined Gold Reserves , U.S. Units December 31, 2016 December 31, 2015 Metallurgical (3) Proven Reserves Probable Reserves Proven and Probable Reserves Recovery Proven + Probable Reserves (2) (3) (2) (3) (2) (3) Deposits/
Slide 125: Attributable Gold Reserves, U.S. Units (continued)
Attributable Gold Reserves, U.S. Units (continued) 1) See cautionary statement regarding reserves and resources on page 10 hereof. 2016 reserves were calculated at a gold price of $1,200 or A$1,600 per ounce unless otherwise noted. 2015 reserves were calculated at a gold price of $1,200 or A$1,500 p
Slide 126: Attributable Gold Reserves, Metric Units
Attributable Gold Reserves, Metric Units (1) Attributable Proven, Probable, and Combined Gold Reserves , Metric Units December 31, 2016 December 31, 2015 Metallurgical Proven Reserves Probable Reserves Proven and Probable Reserves Recovery(3) Proven + Probable Reserves Deposits/Districts by Reportin
Slide 127: Attributable Gold Mineral Resources, U.S. Units
Attributable Gold Mineral Resources, U.S. Units Attributable Gold Mineral Resources(1)(2) - December 31, 2016, U.S. Units Gold Measured Resource Gold Indicated Resource Gold Measured + Indicated Resource(3) Gold Inferred Resource Deposits/Districts Newmont Share Tonnage Grade Au Tonnage Grade Au Ton
Slide 128: Attributable Gold Mineral Resources, Metric Units
Attributable Gold Mineral Resources, Metric Units Attributable Gold Mineral Resources(1)(2) - December 31, 2016, Metric units Gold Measured Resource Gold Indicated Resource Gold Measured + Indicated Resource(3) Gold Inferred Resource Deposits/Districts Newmont Share Tonnage Grade Au Tonnage Grade Au
Slide 129: Attributable Copper Reserves, U.S. Units
Attributable Copper Reserves, U.S. Units Attributable Copper Reserves(1) U.S. Units December 31, 2016 December 31, 2015 Proven Reserves Probable Reserves Proven + Probable Reserves Proven + Probable Reserve Deposits/Districts Newmont Share Tonnage (2) Grade Copper (3) Tonnage (2) Grade Copper (3) To
Slide 130: Attributable Copper Reserves, Metric Units
Attributable Copper Reserves, Metric Units Attributable Copper Reserves(1) Metric Units December 31, 2016 December 31, 2015 Proven Reserves Probable Reserves Proven + Probable Reserves Proven + Probable Reserve Deposits/Districts Newmont Share Tonnage (2) Grade Copper (3) Tonnage (2) Grade Copper (3
Slide 131: Attributable Copper Mineral Resources
Attributable Copper Mineral Resources Attributable Copper Mineral Resources(1)(2) U.S. Units December 31, 2016 Measured Resources Indicated Resources Measured + Indicated Resources Inferred Resources Deposits/Districts Newmont Share Tonnage Grade Copper Tonnage Grade Copper Tonnage Grade Copper Tonn
Slide 132: Endnotes
Endnotes
Slide 133: 2017 Outlook
2017 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital a2017 Outlook in the table are considered “forward-looking Production Production CAS Costsb Expenditures statements” and are based upon certain assumptions, (Koz, Kt) (Koz, Kt) ($/oz, $/lb)
Slide 134: 2018 Outlook
2018 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital a2018 Outlook in the table are considered “forward-looking Production Production CAS Costs b Expenditures (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) statements” and are based upon c
Slide 135: 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, such as Costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performan
Slide 136: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In 1. Excludes Depreciation and Costs Development General Other and All-In Ounces Sustaining Nine Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per amortization and Reclamat
Slide 137: All-in sustaining costs
All-in sustaining costs 1. Excludes Depreciation and amortization and Reclamation and remediation. 2. Includes stockpile and leach pad inventory Year ended December 31, 2012 adjustments. 3. Remediation costs include operating accretion Consolidated Batu Hijau Adjusted AISC and amortization of asset
Slide 138: All-in sustaining costs – 2017 outlook
All-in sustaining costs – 2017 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2017 Gold AISC outlook range to the 2017 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 139: All-in sustaining costs – 2018 outlook
All-in sustaining costs – 2018 outlook Similar to the historical AISC amounts presented above, AISC outlook is also a non-GAAP financial measure. A reconciliation of the 2018 Gold AISC outlook range to the 2018 CAS outlook range is provided below. The estimates in the table below are considered “for
Slide 140: 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 141: Free cash flow yield
Free cash flow yield Management uses Free Cash Flow Yield as a non-GAAP financial measure to compare the cash flows generated from operations relative to the market valuation of the company. Free Cash Flow Yield is Free Cash Flow (as defined above on slide 60) divided by Newmont’s total market capit
Slide 142: 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 143: Return on Capital Employed (ROCE)
Return on Capital Employed (ROCE) Management uses Return on Capital Employed (“ROCE”) as a non-GAAP measure to evaluate the Company’s operating performance. ROCE does not represent, and should not be considered an alternative to, net earnings (loss), operating earnings (loss), or cash flow from oper
Slide 144: TTM Return on Capital Employed (ROCE)
TTM Return on Capital Employed (ROCE) Three Months Ended Sep 30, Jun 30, Mar 31, Dec 31, 2017 2017 2017 2016 (in millions, except per share amounts) Net income (loss) attributable to Newmont stockholders $ 206 $ 177 $ 46 $ (344) Net income (loss) attributable to noncontrolling interests (8) (26) 12
Slide 145: 2013 Return on Capital Employed (ROCE)
2013 Return on Capital Employed (ROCE) Year Ended Dec 31, 2013 (in millions, except per share amounts) Net income (loss) attributable to Newmont stockholders $ (2,534) Net income (loss) attributable to noncontrolling interests (261) Net loss (income) from discontinued operations (61) Equity loss (in
Slide 146: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes, the Cautionary Statement on slide 3 and the factors described under the “Risk Factors” section of the Company’s Form 10-K, filed with the SEC on or about February 21, 201
Slide 147: Endnotes – continued
Endnotes – continued 7. Statements of management’s expectations with respect to future dividends on slide 30 are “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 int