Slide 1: Q1 2017 earnings
Q1 2017 earnings April 25, 2017
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: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 4: Continuing to deliver strategy and create value
Continuing to deliver strategy and create value Safe and efficient operations – with leading sustainability practices Improve the underlying Q1 AISC1 of $900/oz – below guidance with ongoing Full Potential improvements business Gold production up 9% to 1.2 Moz – on track to meet guidance Leading gro
Slide 5: Leading safety and sustainability performance
Leading safety and sustainability performance Injury rates (total recordable injuries per 200,000 hours worked) 2016 injury rates 1.0 0.79 0.9 0.36 0.8 0.7 0.6 ICMM Newmont average 0.5 0.4 0.3 0.2 0.1 0.0 Managing critical controls Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2012
Slide 6: Costs tracking favorably to guidance
Costs tracking favorably to guidance Gold all-in sustaining cost ($/ounce) $1,170 $1,098 $996 $940 – $1,000 $933 $912 Q1 = $900/oz 2012A 2013A 2014A 2015A 2016A 2017E April 25, 2017 Newmont Mining Corporation I Q1 2017 earnings I Slide 6
Slide 7: On track to meet gold production guidance
On track to meet gold production guidance Attributable gold production (Moz) 4.9 – 5.4 4.9 5.0 4.9 4.7 4.6 Q1 = 1.2 Moz 2012A 2013A 2014A 2015A 2016A 2017E April 25, 2017 Newmont Mining Corporation I Q1 2017 earnings I Slide 7
Slide 8: Unlocking major underground resource in Africa
Unlocking major underground resource in Africa • Plans, permits and resources in place to self-fund Ahafo expansion projects • Subika Underground mine will produce 1.8 Moz of gold over 11-year mine life • Mill expansion maximizes value by improving margins and accelerating stockpiles Subika Undergro
Slide 9: Africa expansions maximize value and extend life
Africa expansions maximize value and extend life From 2020 to 2024, projects will improve*: Subika Ahafo Mill Metrics Underground Expansion • Production by ~70% to 550 – 650 Koz/yr Production 150 – 200 Koz 75 – 100 Koz Development capital $160 – $200M $140 – $180M • CAS by ~20% to $650 – $750/oz Fir
Slide 10: Further underground development represents upside
Further underground development represents upside open to the south Subika Underground – open to the north initial development open at depth April 25, 2017 Newmont Mining Corporation I Q1 2017 earnings I Slide 10 Growth area – south
Slide 11: Plateau agreement strengthens long-term pipeline
Plateau agreement strengthens long-term pipeline • Newly discovered gold system in the Yukon – more than 2,000 claims covering >350 km2 • Leverages world class exploration capabilities and secures right for up to 80% earn-in • Large land package with high grade gold mineralization identified over 50
Slide 12: Delivering long-term shareholder value
Delivering long-term shareholder value • Ongoing cost and capital discipline – on track to achieve 2017 cost and production outlook • Growing margins, Reserves and Resources through sector-leading growth pipeline • Leveraging financial flexibility and operational excellence to meet goals and expecta
Slide 13: Nancy Buese, EVP and CFO
Nancy Buese, EVP and CFO
Slide 14: Adjusted EBITDA up 20%
Adjusted EBITDA up 20% Financial metric Q1 2016 Q1 2017 Change Revenue ($M) $1,462 $1,659 +13% Adjusted Net Income ($M)6 $129 $133 +3% Adjusted Net Income ($/diluted share)6 $0.24 $0.25 +4% Adjusted EBITDA ($M) $470 $566 +20% Cash from continuing operations ($M) $157 $379 +141% Free Cash Flow ($M) (
Slide 15: Q1 adjusted net income of 25 cents per share
Q1 adjusted net income of 25 cents per share GAAP to adjusted net income ($/share) $0.10 $0.02 $0.25 $0.13 Net income from Restructuring, Valuation allowance Adjusted net income continuing remediation and and net tax operations other* adjustments *Other includes impairments, acquisition costs, and g
Slide 16: Financial flexibility to execute capital priorities
Financial flexibility to execute capital priorities Funding profitable growth • Investing in highest-margin projects Maintaining balance sheet strength • Net debt to adjusted EBITDA of 0.7x Returning cash to shareholders • Dividend policy improved to double pay-out Net debt ($B) $4.8 $3.8 $3.5 $1.9
Slide 17: Tom Palmer, EVP and COO
Tom Palmer, EVP and COO
Slide 18: North America generating steady production & cash
North America generating steady production & cash • Smooth ramp-up to full production at Long Canyon • Optimizing mill performance at Cripple Creek & Victor • Resolving Carlin geotech issues; backlog nearly addressed at Leeville, drilling at Silverstar • Progressing Northwest Exodus, Twin Undergroun
Slide 19: Progressing profitable growth in South America
Progressing profitable growth in South America • Primary crusher and associated infrastructure under construction at Merian • No major disruptions at Yanacocha despite extreme weather conditions • Advancing development of Quecher Main oxide deposit – decision expected in H2 • Yanacocha Sulfides tech
Slide 20: Australia delivering profitable growth
Australia delivering profitable growth • Safe restart at Tanami operations following shut-down due to heavy rains • Tanami expansion remains on track for mid-2017 completion • Full Potential delivering ongoing mill throughput improvements at KCGM and Boddington • Progressing Morrison extension at KC
Slide 21: Strong performance and prospects in Africa
Strong performance and prospects in Africa • Strong results with ongoing mill throughput and recovery improvements • Fair and equitable collective bargaining agreements reached for 2016 and 2017 • Investing in next phase of stripping at Ahafo to access higher grades from 2019 • Advancing Ahafo North
Slide 22: Gary Goldberg, President and CEO
Gary Goldberg, President and CEO
Slide 23: Geographically diverse portfolio
Geographically diverse portfolio Operations Q1 2017 Current projects ~$18B market capitalization Mid-term projects S&P 500 gold stock Stable production profile $5.8B liquidity North America Investment grade credit rating Carlin − NW Exodus Twin Creeks − Twin Creeks UG Phoenix Long Canyon CC&V Africa
Slide 24: Leading project pipeline and track record
Leading project pipeline and track record Sustaining projects (in outlook) Current projects (in outlook) Greenfields Mid-term projects (<3 years; not in outlook) Conceptual/ Long-term projects (>3 years; not in outlook) Scoping Prefeasibility/ Feasibility Definitive Yukon Feasibility Long Canyon Ph
Slide 25: Leading Reserves profile
Leading Reserves profile 2016 Reserves statistics5 Newmont Competitor Average 129 11.8 9.9 72% 77 29% Reserve ounces per Operating Reserve Reserves in thousand shares* life (years) ** US/Canada/Australia Western Europe* * Competitor average includes Agnico Eagle, AngloGold, Barrick, Gold Fields, Gol
Slide 26: Differentiated long-term production profile
Differentiated long-term production profile Projected production profile (Koz)4 Industry-leading long-term pipeline Divestments Current projects Mid-term projects 5,000 4,000 3,000 Existing Existingassets assetsand andsustaining sustainingprojects projects 2,000 1,000 0 2012 2013 2014 2015 2016 2017
Slide 27: Updating outlook to reflect Ahafo expansion projects
Updating outlook to reflect Ahafo expansion projects Guidance metric 2017E 2018E 2019E – 2021E Gold production (Moz) 4.9 – 5.4 4.7 – 5.2 (+100 Koz) 4.7 – 5.2 (+200 Koz) CAS ($/oz) $700 – $750 $700 – $800 $650 – $750 AISC ($/oz) $940 – $1,000 $950 – $1,050 $870 – $970 (-$10/oz) Sustaining Capital ($M
Slide 28: Creating long-term value
Creating long-term value Culture of value over volume Improve the underlying Proven track record of continuous cost and efficiency improvement business Optimized portfolio based in lower-risk jurisdictions Focus on growing margins, Reserves and Resources Strengthen the Robust organic growth pipeline
Slide 29: Questions?
Questions?
Slide 30: 2017 Outlook
2017 Outlooka Consolidated All-in Consolidated Consolidated Attributable Consolidated Sustaining Total Capital Production Production CAS Costsb Expenditures (Koz, Kt) (Koz, Kt) ($/oz, $/lb) ($/oz, $/lb) ($M) a2017 Outlook in the table above are considered “forward-looking statements” North America C
Slide 31: Adjusted net income
Adjusted net income 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 analysts to understand the results of the contin
Slide 32: Adjusted net income
Adjusted net income Three Months Ended (1) Net loss (income) attributable to Newmont stockholders from discontinued operations March 31, 2017 2016 relates to (i) adjustments in our Holt royalty obligation, presented net of tax expense Net income (loss) attributable to Newmont stockholders $ 46 $ 52
Slide 33: 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 34: 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 35: 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 36: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per March 31, 2017 to Sales (1)(2)(3) Costs (4) Explorati
Slide 37: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Three Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per March 31, 2016 to Sales (1)(2)(3) Costs (4) Explorati
Slide 38: 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 39: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes, the Cautionary Statement on slide 2 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