Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (November 2021)
46 slides from Newmont's investor presentation, November 2021
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES NOVEMBER 2021 THROUGH SUSTAINABLE, RESPONSIBLE MINING NOVEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 1
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: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions World’s Leading Gold Company ▪ Nine world-class assets in top-tier jurisdictions* Musselwhite ▪ Robust gold reserves of 94Moz and 65Moz 20% in GEO reserves* Éléonore Nevada Gold Mines*** ▪ Stable production of average ~8M GEOs* Turquoise Ridge/Twin Creeks
Slide 4: Nine World-Class Assets in Top-Tier Jurisdictions
Nine World-Class Assets in Top-Tier Jurisdictions Carlin Turquoise Ridge Cortez Boddington Tanami Ahafo Yanacocha Peñasquito Nevada (38.5%) * ✓ >1 Moz GEOs ✓ ~550 Kozs* ✓ >800Kozs* ✓ ~500 Koz GEOs** ✓ ~1.7Moz GEOs* ✓ ~1.4 Mozs* * ✓ AISC of ~$800/oz ✓ AISC of $650/oz* ✓ AISC of $800/oz* ✓ AISC of ✓ A
Slide 5: Project Pipeline to Sustain Production into 2040's
Project Pipeline to Sustain Production into 2040’s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION Feasibility Tanami Expansion 2 Definitive Yanacocha Sulfides Peru – Gold (~65%) Copper (~35%) Australia – Gold Ahafo North Pueblo Viejo Expansion JV Ghana – Gold Dominican Republic – Gold Goldrush (NGM JV
Slide 6: Robust Reserves in Top-Tier Jurisdictions
Robust Reserves in Top-Tier Jurisdictions REPLACED 80 PERCENT OF DEPLETION IN 2020 GOLD GOLD EQUIVALENT OUNCES Africa Silver 12% 12% North America 35% Other Australia 94 Moz 65 Moz 13% 20% Gold Reserves* & GEO Reserves* & 101 Moz 107 Moz Gold Resources** GEO Resources** Copper South America 75% 33%
Slide 7: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF 59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV CENTRALIAN GOL
Slide 8: The World's Leading Gold Company Third Quarter Highlights
The World’s Leading Gold Company THIRD QUARTER HIGHLIGHTS Delivered solid Q3 performance Delivered gold industry’s first Declared industry-leading and updated 2021 full-year autonomous haulage fleet at dividend of $0.55 per share guidance Boddington for Q3** Produced 1.45M attributable Advancing nea
Slide 9: Financial Performance in the Third Quarter
Financial Performance in the Third Quarter METRICS Q3 2020 Q3 2021 Profit Metrics Realized Gold Price ($/oz) $1,913 $1,778 Revenue ($M) $3,170 $2,895 Adjusted Net Income ($M)* $697 $483 Adjusted Net Income ($/diluted share)* $0.86 $0.60 Adjusted EBITDA ($M)* $1,663 $1,316 Cash Flow Metrics Cash from
Slide 10: Full-Year 2021 Guidance
Full-Year 2021 Guidance 2020 2021 REPORTING METRIC RESULTS GUIDANCE* Gold price ($/oz)1 $1,775 $1,800 Gold production (Moz)2 5.9 6.0 Co-product GEO production (Moz)3 1.0 1.3 Total GEO production (Moz) 6.9 7.3 Gold Costs Applicable to Sales ($/oz)4 $756 $790 Co-product GEO Costs Applicable to Sales (
Slide 11: Industry-Leading Dividend Framework
Industry-Leading Dividend Framework ▪ Leading $1.00/share sustainable base dividend ANNUALIZED DIVIDEND PAYOUT $2.80 - $3.70 ▪ Targeting 40% – 60% of incremental attributable Free Cash Flow above $1,200/oz returned to shareholders ▪ Evaluating gold price increments of ~$300/oz $2.20 - $2.80 ▪ Approv
Slide 12: Delivering on Capital Allocation Strategy in 2021
Delivering on Capital Allocation Strategy in 2021 ✓ Delivered first Autonomous Haulage Fleet to gold mining industry ✓ Approved full funds for Ahafo North and progressing Tanami Expansion 2 INVESTING IN ORGANIC ✓ Progressing Yanacocha Sulfides, investing at least $500M through 2022 with a full funds
Slide 13: External Recognition for Responsible Business Practices
External Recognition for Responsible Business Practices ESG RATINGS ESG RECOGNITION SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 99% Percentile ranking 23 ESG Risk Rating measures exposure and #2 Most transparent company in A- CDP Climate Scores reflective of global metals and mining sector ma
Slide 14: Focused on Value, Driven by Purpose
Focused on Value, Driven by Purpose 2020 SUSTAINABILITY REPORT 2020 CLIMATE STRATEGY REPORT STANDARDS AND PERFORMANCE EXPECTATIONS ADDITIONAL REPORTS ON OUR WEBSITE ▪ Sustainability Accounting Standards Board (SASB) ▪ 2020 SASB Index ▪ Task Force on Climate-related Financial Disclosures (TCFD) ▪ 202
Slide 15: Investment highlights
#1 gold producer with an Proven operating model and Focused on industry-leading average ~8M GEOs* per year deep bench of experienced returns to shareholders with through 2030 and significant leaders with strong track record disciplined capital allocation exposure to other metals through the cycle St
Slide 16: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING NOVEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 16
Slide 17: Proven Operating Model with Strong Track Record
Proven Operating Model with Strong Track Record ✓ Proven integrated operating model with deep bench of experienced leaders and technical experts ✓ Robust governance structure drives stable, predictable and sustainable performance INTEGRATED OPERATING MODEL ✓ Shared knowledge, expertise and talent ac
Slide 18: Continuous Improvement Methodology
Continuous Improvement Methodology FULL POTENTIAL DELIVERED ~$4B IN FULL POTENTIAL BENEFITS SINCE 2014 ▪ Full Potential program engrained in Newmont’s operating model and culture ▪ Vehicle for reducing costs, improving efficiencies and generating productivity across operating sites and functions SIT
Slide 19: Full Potential Growing Margins at Peñasquito
Full Potential Growing Margins at Peñasquito LEVERAGING PROVEN WORLD-CLASS PROGRAM AND TECHNICAL EXPERTISE Diagnose Design Deliver Refresh ~20% EXTERNAL ~45% OPEN PIT SPEND & OTHER MINING Supply Chain and G&A Optimizing Fleet and MINING PROCESSING Improvements Improving Productivity IMPROVEMENTS* IM
Slide 20: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities INVESTING IN ORGANIC RETURNING CASH TO MAINTAINING FINANCIAL GROWTH SHAREHOLDERS FLEXIBILITY ✓ Sustaining capital of ~$1B per year ✓ Industry-leading dividend framework ✓ Liquidity of $7.6B and cash position of $4.6B at Q2 ✓ Average attributable development
Slide 21: Significant Milestones in Our ESG Journey
Significant Milestones in Our ESG 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 Chief Sustainab
Slide 22: Reducing Our Carbon Footprint
Reducing Our Carbon Footprint >30% REDUCTION 30% REDUCTION 100% CARBON NEUTRAL Absolute GHG Emissions Absolute GHG Emissions of joint 2050 Ambition and Intensity by 2030 (Scope 1 and 2) venture assets and supply chain by 2030 (Scope 3) ▪ Targets will be delivered from our current ▪ Reduction targets
Slide 23: Targeted Strategy to Reduce Scope 1 & 2 Emissions
Targeted Strategy to Reduce Scope 1 & 2 Emissions PROJECTS IDENTIFIED OPPORTUNITIES THROUGH RENEWABLES OPERATIONAL ~10% YANACOCHA CHANGES Evaluating a wind project >30% ~10% TANAMI >800 KtCO2e Reduction from Reduction in Scope Evaluating future wind and solar projects Renewable Energy 1 & 2 Emission
Slide 24: Pathway to Achieving Climate Change Goals
Pathway to Achieving Climate Change Goals 10+ YEARS NEXT 10 YEARS IN EXECUTION Battery Electric Haul Trucks Less Energy Intensive Ore Fleet Electrification Mine Electrification All Sites and Projects – Global Separation (Tanami Expansion 2) (Borden) All Sites – Global Tanami – Australia Porcupine –
Slide 25: Social Acceptance Built on Trust and Engagement
Social Acceptance Built on Trust and Engagement KEY PRINCIPLES ▪ Proactively engage stakeholders ▪ Develop relationships based on inclusion, transparency and integrity ▪ Act with humility and a willingness to listen MINE LIFECYCLE ▪ Integrate stakeholder considerations into managing risks ▪ Develop
Slide 26: 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 Environment, 20% Health and Safety Sustainability & Governance EX
Slide 27: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS Tom Palmer Rob Atkinson Nancy Buese Greg Boyce, Chair Bruce R. Brook Maura Clark Matthew Coon Come President and CEO EVP and COO EVP and CFO Steve Gottesfeld Nancy Lipson René Médori Julio Quintana Susan Story EVP and CSO EVP G
Slide 28: Executive Compensation Structure
Executive Compensation Structure BALANCED AND WEIGHTED TOWARD DELIVERY OF RESULTS NOVEMBER 2021 INVESTOR PRESENTATION NEWMONT CORPORATION 28
Slide 29: Exploration is a Core Expertise and Investment Priority
Exploration is a Core Expertise and Investment Priority EXPLORATION IS THE FOUNDATION FOR GROWING RESERVES AND SUSTAININ G PRODUCTION 28 Exploration Success Discoveries 338 Geoscientists Sector-Leading Team Underpinned by a Proven Operating Model Technology Cutting Edge Exploration Technologies Safe
Slide 30: Growth Focused on Value
Growth Focused on Value PROJECT PIPELINE TO SUSTAIN PRODUCTION INTO 2040’S Greenfield Opportunities Brownfield Opportunities District-creating potential Organic extension of production Exploration Budget: ~$50M Exploration Budget: ~$200M 17 MOZ 39 MOZ 77 MOZ 62 MOZ RESERVES RESOURCES* RESERVES RESOU
Slide 31: Robust Near-Mine Exploration Opportunities
Robust Near-Mine Exploration Opportunities NORTH AMERICA Peñasquito: Large resource base and prospective land package with potential to extend mine life to 2040 Éléonore: New district targets for 2021 with <20% property drill tested to date CC&V Underground: Significant potential to extend mine life
Slide 32: 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 33: 2021 Outlook
2021 Outlooka a 2021 outlook projections used in this presentation are considered forward-looking statements and represent management’s good As of Newmont 2021 Outlook faith estimates or expectations of future production results as of October 28, 2021. Outlook is based upon certain assumptions, Octo
Slide 34: Adjusted net income (loss)
Adjusted net income (loss) 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 others to understand the results of the c
Slide 35: 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 36: 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 37: 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 38: All-in Sustaining Costs
All-in Sustaining Costs Newmont has developed 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 performance and t
Slide 39: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Three Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septem
Slide 40: All-in Sustaining Costs
All-in Sustaining Costs Care and Sustaining Advanced Projects, Maintenance Treatment Capital and All-In Costs Research and and Other and Lease All-In Ounces Sustaining Nine Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per Septemb
Slide 41: Gold All-in Sustaining Costs - 2021 Outlook
Gold All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Gold AISC outlook to the 2021 Gold CAS outlook are 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 Se
Slide 42: Co-Product All-in Sustaining Costs - 2021 Outlook
Co-Product All-in Sustaining Costs - 2021 Outlook A reconciliation of the 2021 Co-products AISC outlook to the 2021 Co-Products CAS outlook is provided below. The estimates in the table below are considered “forward-looking statements” within the 27A of the Securities Act of 1933, as amended, and Se
Slide 43: 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 44: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-Q for the quarter ended September 30, 2021 filed with the SEC on October 28, 2021, and with the Cautionary Statement on slide 2 and the following notes below. Outlook
Slide 45: Endnotes
Endnotes Reserves Estimates: The reserves stated in this presentation were prepared in compliance with Industry Guide 7 published by the United States SEC and represent the amount of gold, copper, silver, lead and zinc that we estimated, at December 31, 2020, could be economically and legally extrac
Slide 46: Endnotes
Endnotes Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See appendix for more information and reconciliation to the nearest GAAP metric. Free Cash Flow. FCF or Free cash flow are used herein is a forward-looking statement and