Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — BMO Global Metals & Mining Conference 2019
44 slides from Newmont's conference presentation, Feb 25, 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
Additional information Additional information about the proposed 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 securities or the
Slide 3: Newmont has outperformed Barrick by ~90% since 2014
Newmont has outperformed Barrick by ~90% since 2014 TSR1 Since January 1, 2014 (%) 220.0 April 21, 2014 Sept 24, 2018 Jan 14, 2019 mont and Goldcorp unce combination 200.0 180.0 Newmont: +65% 160.0 140.0 120.0 Gold Miners ETF2: +13% Gold Price: +11% 100.0 80.0 Barrick: (22%) 60.0 40.0 20.0 31-Dec-13
Slide 4: Newmont previously reviewed and rejected combination with Barrick
Newmont previously reviewed and rejected combination with Barrick 1.000x 0.900x 0.800x 0.700x 0.600x 0.500x 0.400x 0.300x 0.200x 20143 2014 2015 2016 2017 2018 01-Jan-2014 to 31-Dec-2018 Barrick / Newmont Trendline Source: Bloomberg Market Data February 2019 Newmont Mining Corporation I BMO Metals &
Slide 5: Disciplined approach to M&A led to Goldcorp transaction
Disciplined approach to M&A led to Goldcorp transaction Pro Forma Reserves: Newmont + Goldcorp3 • Highly disciplined approach to evaluating M&A High-quality, sustainable and profitable assets Low jurisdictional risk Value opportunities from synergies and Full Potential W. Africa 10% A alia North Ame
Slide 6: Newmont Goldcorp delivers compelling value
Newmont Goldcorp delivers compelling value Comparison at time of announcement mm annual America America Source: Company filings, FactSet, street research Note: Newmont-Goldcorp accretion is based on the median net asset value per share and cash flow per share estimates available in broker reports pr
Slide 7: Full Potential leverages Newmont's global operating model
Full Potential5 leverages Newmont’s global operating model • • • Proven operating model with clear accountabilities and site ownership of target setting and delivery Consistent performance benchmarking and sharing of successes enables rapid replication Newmont Full Potential has delivered more than
Slide 8: Newmont Goldcorp provides >$2.5B of value creation potential
of value creation potential8 Newmont Goldcorp provides >$2.5B $265 mm $165 mm • $100 mm synergies available through G&A savings • Additional $165 mm available through Full Potential improvements $100 mm • At a 5% discount rate, value creation potential8 increases to >$3.3 billion Note: Based on incr
Slide 9: Synergies can be achieved efficiently through a Nevada JV
Synergies can be achieved efficiently through a Nevada JV Synergies can be efficiently achieved through a Nevada joint venture with Barrick • • • • • No transaction costs No exposure to Barrick’s higher risk portfolio No Barrick integration risk Retain benefits of strategic combination with Goldcorp
Slide 10: Ongoing collaboration at joint ventures generating value
Ongoing collaboration at joint ventures generating value • Newmont and Barrick teams at Turquoise Ridge and KCGM share best practices to optimize performance • Renegotiated Toll Milling Agreement in 2018 improved results for both partners at TRJV • Current initiatives underway Newmont has provided f
Slide 11: Barrick shares carry significant risk
Barrick shares carry significant risk • Company is only weeks into integrating Randgold transaction -Recent 2019 guidance disappointed compared to analyst expectations • DRC, Mali, Zambia, Tanzania, Saudi Arabia and PNG are all high risk jurisdictions • Pascua Lama requires substantial care and main
Slide 12: Newmont has delivered while Barrick has not
Newmont has delivered while Barrick has not End 700 708 750 810 850 892 691 700 750 780 794 820 1.18 1.35 0.35 Source: Company filings and Bloomberg Market Data. February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference | Slide 13 Newmont has controlled costs, sustained production, a
Slide 13: Newmont Goldcorp strategic combination
Newmont Goldcorp strategic combination Creating the world’s leading gold company: • • Strongest portfolio of operating gold mines, projects, and Reserves in favorable jurisdictions Proven and scalable operating model • Targeting sustainable production of 6 to 7 million ounces of gold annually4 Indus
Slide 14: Endnotes
Endnotes 1. 2. 3. 4. Total shareholder return including dividends and share repurchases. Assumes proceeds from dividends are reinvested upon payment. VanEck Vectors Gold Miners Exchange-Traded Fund. North America category includes USA, Canada and Mexico. Latin America category includes Argentina, Ch
Slide 15: Gary Goldberg, CEO, BMO Metals and Mining Conference February 2019
Gary Goldberg, CEO BMO Metals and Mining Conference February 2019 The following is an excerpt of the BMO Metals and Mining Conference presentation:
Slide 16: 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 17: Additional information
Additional information Additional information about the proposed 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 securities or the
Slide 18: Newmont has outperformed Barrick by ~90% since 2014
Newmont has outperformed Barrick by ~90% since 2014 TSR* Since January 1, 2014 (%) 220.0 April 21, 2014 Sept 24, 2018 Jan 14, 2019 ont and Goldcorp unce combination 200.0 180.0 Newmont: +65% 160.0 140.0 120.0 Gold Miners ETF**: +13% Gold Price: +11% 100.0 80.0 Barrick: (22%) 60.0 40.0 20.0 31-Dec-13
Slide 19: Newmont previously reviewed and rejected combination with Barrick
Newmont previously reviewed and rejected combination with Barrick 1.000x 0.900x 0.800x 0.700x 0.600x 0.500x 0.400x 0.300x 0.200x 20134 2014 2015 2016 2017 2018 01-Jan-2014 to 31-Dec-2018 Barrick / Newmont Trendline Source: Bloomberg Market Data February 2019 Newmont Mining Corporation I BMO Metals &
Slide 20: Synergies can be achieved efficiently through a Nevada JV
Synergies can be achieved efficiently through a Nevada JV •Demonstrated mine site collaboration at both TRJV and KCGM Newmont Goldcorp is open to negotiating a Joint Venture Agreement with Barrick in Nevada Nevada Joint Venture • Shared economic ownership - Equal management committee representation
Slide 21: Newmont Goldcorp strategic combination
Newmont Goldcorp strategic combination Creating the world’s leading gold company: • • Strongest portfolio of operating gold mines, projects, and Reserves in favorable jurisdictions Proven and scalable operating model • Targeting sustainable production of 6 to 7 million ounces of gold annually1 Indus
Slide 22: Proven strategy for long-term value creation
Proven strategy for long-term value creation share repurchases February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference I Slide 8 2013 2014 2015 2016 2017 2018 Akyem on line Phoenix copper leach on line Midas sold Jundee sold Penmont sold Merian funded Debt reduced Waihi sold Long C
Slide 23: Superior operational execution
Superior operational execution All-in sustaining costs4 down 18% Total injury rates* down 56% 0.40 2012 2013 2014 2015 2016 2017 2018 2012 2013 2014 2015 2016 2017 2018 *Total recordable injury frequency rates per 200,000 hours worked Gold Quarry February 2019 Newmont Mining Corporation I BMO Metals
Slide 24: Newmont Goldcorp portfolio in favorable jurisdictions
portfolio* Newmont Goldcorp in favorable jurisdictions % of combined Reserves5: ~90% in Americas and Australia USA 21% Latin America 27% Aus ralia Mexico 8% Ghana 10% Canada 15% Cornerstone assets Optimization potential * Subject to closing of Newmont Goldcorp transaction; see Endnote 1 Goldcorp ass
Slide 25: Delivered >$2B in Full Potential benefits since 2013
Delivered >$2B in Full Potential2 benefits since 2013 Superior operational execution through sustainable productivity improvements and cost efficiencies • Core principles – focused on value and viability, grounded in technical fundamentals • Proven operating model – clear accountability, with site o
Slide 26: Investing in profitable projects across the cycle
Investing in profitable projects across the cycle AISC/oz & Koz/year represent first 5-year project averages except for Quecher Main (see *** below) * Represents processing life for Twin Underground ** Average annual improvement to Ahafo compared to 2016 *** Production represents Yanacocha (100%) fr
Slide 27: Combined project pipeline highlights depth and flexibility
pipeline* Combined highlights depth and flexibility Newmont Projects Goldcorp Projects Conceptual/ Scoping Prefeasibility CC&V Underground Feasibility Definitive Feasibility Century Musselwhite Expansion Long Canyon Ph 2 Execution Galore Creek JV Coffee Pete Bajo Expansion Nueva Unión JV Borden Chaq
Slide 28: Exploration strength through combined investments
Exploration strength through combined* investments Goldcorp Strategic Equity Investments (19) Newmont Strategic Equity Investments (10) Newmont Exploration Joint Ventures (11) Astro | Evrim Resources Triumph Gold Independence Gold Lucky Strike Resources Colorado Resources Arcus Development TMAC Aury
Slide 29: Complementary strengths to deliver long-term value
Complementary strengths to deliver long-term value global processes and fit-for-financial discipline February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference I Slide 15 Values based culture of continuous improvement Performance supported by purpose technology Strong balance sheet an
Slide 30: Complementary strengths to deliver long-term value
Complementary strengths to deliver long-term value NEWMONT. Values based culture of continuous improvement Performance supported by global processes and fit-for- purpose technology Strong balance sheet and financial discipline Experienced operational leadership with deep and diverse bench strength N
Slide 31: Due diligence focus on asset strength and optionality
Due diligence focus on asset strength and optionality 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 distr
Slide 32: Cornerstone Goldcorp assets
Cornerstone Goldcorp assets Peñasquito Cerro Negro Musselwhite Pueblo Viejo February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference I Slide 19 •Joint venture with Barrick (40 percent equity ownership) •One of the largest gold mines •Expansive resource with reserve conversion potent
Slide 33: Optimization potential to unlock longer-term value
Optimization potential to unlock longer-term value Éléonore Porcupine Red Lake February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference I Slide 20 •World-class, mature gold district; higher cost operation due to lower grades •Good ground control programs, rock mass, infrastructure a
Slide 34: Goldcorp projects provide long-term optionality
Goldcorp projects provide long-term optionality Nueva Union Coffee Norte Abierto February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference I Slide 21 •World-class gold-copper project in South America; long-life with large resource •Two large deposits combined to improve economics, re
Slide 35: 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 February 21, 2019 and dis
Slide 36: Endnotes
Endnotes 6. Internal rates of return (IRR) targets on projects, before taxes and royalties, are calculated using an assumed $1,200 gold price. IRR targets are “forward-looking statements.” February 2019 Newmont Mining Corporation I BMO Metals & Mining Conference | Slide 79
Slide 37: Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference transcript
Client Id: 77 THOMSON REUTERS STREETEVENTS EDITED TRANSCRIPT NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference EVENT DATE/TIME: FEBRUARY 25, 2019 / 3:30PM GMT THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2019 Thomson Reuters. All rights reserved
Slide 38: Transcript: presentation by Gary Goldberg
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference CORPORATE PARTICIPANTS Gary J. Goldberg Newmont Mining Corporation - CEO & Director CONFERENCE CALL PARTICIPANTS Andrew Kaip BMO Capital Markets Equity Research - MD of Minin
Slide 39: Transcript: transaction closing and integration
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference quality and depth. These prospects translate to the sector's largest reserve and resource base and an exceptional long-term leverage to the gold price. Equally important, we'
Slide 40: Transcript: portfolio and operating regions
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference with governments and civil society, through the International Cyanide Management Institute. I propose that we take a similar approach to raising standards for tailings misman
Slide 41: Transcript: project pipeline and exploration
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference project resequencing, allows us to constantly target sustainable and profitable production of between 6 million and 7 million ounces of gold per year with an average attribut
Slide 42: Transcript: Q&A on leadership succession
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference Gary J. Goldberg - Newmont Mining Corporation - CEO & Director Great question. And I'm pleased with the quality of the team that we put in place at Newmont over the last 6, 7
Slide 43: Transcript closing and disclaimer
Client Id: 77 FEBRUARY 25, 2019 / 3:30PM, NEM - Newmont Mining Corp at BMO Capital Markets Global Metal and Mining Conference Gary J. Goldberg - Newmont Mining Corporation - CEO & Director Thank you. 7 THOMSON REUTERS STREETEVENTS | www.streetevents.com | Contact Us ©2019 Thomson Reuters. All rights
Slide 44: Cautionary Statement Regarding Forward-Looking Statements
Cautionary Statement Regarding Forward-Looking Statements: This release 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
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