Newmont Corporation · NYSE:NEM
Newmont — Technical Presentation (September 2017)
64 slides from Newmont's technical presentation, September 2017
Slide 1: Nevada Site Tour
Nevada Site Tour September 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: North American Regional Office
North American Regional Office
Slide 4: Strategic imperative to improve and grow business
Strategic imperative to improve and grow business Improve the underlying business • Step-change in safety • Increase value through improved integration • Improve costs and commercial culture • Leverage fit-for-purpose technology Strengthen the portfolio • Advance profitable projects and prospects •
Slide 5: Leading safety and sustainability performance
Leading safety and sustainability performance Total injury rates down 70% over last 9 years Recognized sustainability leadership • Front line leadership visibility and engagement • Mining industry leader in DJSI for last 3 years • Fatality Risk Management is top priority • Superior land position and
Slide 6: Strong operational performance and outlook
Strong operational performance and outlook • 2017 guidance1 improved for gold production (2.1 to 2.2Moz) and AISC2 ($855 to $930/oz) on: − Lower cost production at new operations: Long Canyon, CC&V outperforming as ramp-up continues − Mine plan improvements at Carlin and Phoenix − Blend management i
Slide 7: Cornerstone asset with significant land position
Cornerstone asset with significant land position Turquoise Ridge JV Long Canyon Carlin • Open pit mines Twin Creeks − Silverstar Cripple Creek & Victor − Goldstar Phoenix − Gold Quarry Carlin Underground − Emigrant Carlin • Underground mines − Exodus − Leeville/Turf − Pete Bajo − Chukar Twin Creeks
Slide 8: Full Potential drives significant 2017 improvement
Full Potential drives significant 2017 improvement • Global FP Program has delivered >$1B3 in cost and efficiency improvements since 2012 • North America FP on track to deliver substantial savings in 2017; improvement is exceeding budget; year to date >$85M FP savings delivered from 94 initiatives,
Slide 9: Going forward: Improving costs and margin outlook
Going forward: Improving costs and margin outlook Full Potential, assisted by technology, on track to deliver major improvements: • Continuing to optimize costs and apply capital discipline − Examples: improving TSF planning & construction methods across Carlin and Phoenix; improved vendor agreement
Slide 10: Demonstration
Demonstration Asset Management Discussion & Centralized Health Monitoring System Demonstration Jason Hill, Regional Asset Management Director
Slide 11: Centralized Asset Management - Purpose
Centralized Asset Management - Purpose The purpose of the Regional Asset Management Team is to maximize the life cycle value of the North American Asset Base • Optimizing/Aligning Asset Strategies throughout organization - Reliability Engineering/Modeling - Life Cycle Cost Modeling • Providing Centr
Slide 12: Centralized Asset Management – Value Proposition
Centralized Asset Management – Value Proposition Integrate asset strategy optimization through centralized planning on a Regional basis with site involvement Reduce replication of activities being executed site-by-site Develop maintenance planners into mature asset management “One common practitione
Slide 13: Asset Health Center – rapid resolutions
Asset Health Center – rapid resolutions Providing next-generation asset health management • Rapid identification of potential issues Real-time data from • Diagnosis in correlation with historic trends (site-region-global) multiple assets • Integrated within existing systems (eg SAP) • Timely actions
Slide 14: Scenario
Scenario • On Thursday 08/31, haul truck HT929 at Carlin was monitored by the AHC as showing a high L to R exhaust gas temperature differential • When combined with oil sample analysis data such as soot and iron levels as well as oil viscosity, this combination exhibited typical tell-tale signs of a
Slide 15: Advancing growth prospects
Advancing growth prospects Wayne Trudel, Regional Group Executive Exploration
Slide 16: Pursuing prospects across broader region
Pursuing prospects across broader region Greenfields exploration Near-mine exploration Under assessment Yukon Carlin UG Twin UG Eastern Great Basin Long Canyon CC&V OP & UG Arizona • Near-mine exploration strategy focuses on developing underground resources • Progressing projects: NW Exodus, Twin Un
Slide 17: Q&A
Q&A
Slide 18: Appendix
Appendix
Slide 19: Background on North America regional leadership
Background on North America regional leadership Andrew Woodley, Regional Senior Vice President – North America Mr. Woodley joined Newmont in January, 2017 as the Regional Senior Vice President for our North America operations. He brings more than 20 years of mining sector experience across a diverse
Slide 20: Background on North America regional leadership
Background on North America regional leadership Gary Dowdle, General Manager Operations Services – North America Mr. Dowdle has worked in various operational roles during his 22 years with Newmont. He joined the company in 1994 as a General Foreman for Carlin Surface Operations and progressed throug
Slide 21: Background on Long Canyon leadership
Background on Long Canyon leadership Gordon Mountford, General Manager • Time in position – 1.5 years • Total tenure at Newmont – 24.5 years • Bachelor of Science, Mine Engineering from Montana Tech Randy Walund, Mine Manager • Time in position – 5 years • Total tenure at Newmont – 25 years • Bachel
Slide 22: Background on Carlin leadership
Background on Carlin leadership Mike Schaffner, General Manager, Carlin • Time in position – 2 years • Total tenure at Newmont – 12.5 years • Bachelor of Science, Geological Engineering from Montana Tech Nathan Bennett, Chief Engineer, Carlin • Time in position – 4.5 years • Total tenure at Newmont
Slide 23: Background on Carlin leadership
Background on Carlin leadership Clinton Van Der Westhuizen, Manager, Carlin Process Operations • Time in position – 2 years • Total tenure at Newmont – 7.5 years • Bachelor of Science, Chemical Engineering from the University of the Witwatersrand Mike McGlynn, Chief Metallurgist, Carlin • Time in po
Slide 24: Strong operational performance and outlook
Strong operational performance and outlook 2015 2016 H1 2017 2017 Guidance1 Gold Production (Koz) 1,643 2,024 1,082 2,080 – 2,240 Gold CAS ($/oz) 758 702 688 675 – 725 Gold AISC2 ($/oz) 979 869 869 855 – 930 Copper Production (Kt) 21 19 9 10 – 20 Copper CAS ($/lb) 1.97 2.48 1.70 1.75 – 1.95 Copper A
Slide 25: Carlin site details
Carlin site details 2016 Reserves5: 2016 Resources*: 15.0 Moz Gold 5.5 Moz Gold Ownership: 100% Located: West of Elko 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 transitional o
Slide 26: Phoenix site details
Phoenix site details 2016 Reserves: 2016 Resources*: 4.4 Moz Gold 3.5 Moz Gold 572 Ktonnes Copper 415 Ktonnes Copper Ownership: 100% Located: Near the town of Battle Mountain Operations: Phoenix open pit and Lone Tree Process: Mill produces gravity gold concentrate and copper/gold flotation concentr
Slide 27: 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 Located: Located 35 miles northeast of Winnemucca Operations: Open pit and Turquoise Ridge underground mine Process: High grade refractory ore processed through the Sage autoclave
Slide 28: Long Canyon site details
Long Canyon site details 2016 Reserves: 2016 Resources*: 1.2 Moz Gold 2.0 Moz Gold Ownership: 100% Located: Located along the eastern flank of the Pequop mountains in NE Nevada, Elko County Operations: Surface Process: Heap leach Key statistics 2015 2016 H1 2017 2017 Outlook Gold production (Koz) -
Slide 29: CC&V site details
CC&V site details 2016 Reserves: 2016 Resources*: 3.4 Moz Gold 2.5 Moz Gold Ownership: 100% Located: Near the towns of Cripple Creek and Victor Operations: 4 open pits Process: Historically a valley leach facility; new 2Mtpa mill and second valley leach commissioned Key statistics 2015 2016 H1 2017
Slide 30: Twin Creeks develops Twin Underground
Twin Creeks develops Twin Underground Reserves and Resource base (R&R) Upside Potential • Reserves: 0.2 Moz (1 Mt @ 6.6 g/t Au) • 60% of Inventory converted to R&R • Resource: 0.04 Moz (0.3 Mt @ 5.0g/t Au) • Mineralization over 2.3km strike length Highlights • 0.1 Moz Reserves additions in 2016 • Co
Slide 31: NW Exodus – growing into major high grade deposit
NW Exodus – growing into major high grade deposit Reserves and Resource base (R&R) Upside Potential • Reserves: 0.8 Moz (3 Mt @ 8.1 g/t Au) • 45% of Inventory converted to R&R • Resource: 0.3 Moz (2 Mt @ 6.1 g/t Au) • Half of +4.0km target drill tested Highlights • 0.1 Moz Reserves and 0.2 Moz Resou
Slide 32: Developing Carlin's multimillion-ounce underground
Developing Carlin’s multimillion-ounce underground Reserves and Resource base (R&R) Upside Potential • Reserves: 0.4 Moz (1.5 Mt at 7.9 g/t) • 20% of Inventory converted to R&R • Resource: 0.5 Moz (2.1 Mt at 7.4 g/t) • 3.0km by 1.0km corridor only partially drill tested Highlights • 0.2 Moz Reserves
Slide 33: CC&V – building long term value
CC&V – building long term value Reserves and Resource base (R&R) Upside Potential • Reserves: 3.4 Moz (129 Mt @ 0.8 g/t Au) • Along vertical contacts and hydrothermal pipes • Resource: 2.5 Moz (137 Mt @ 0.6 g/t Au) • Below current pits Highlights • 2016 drilling focused on Inventory: Mineralized zon
Slide 34: Long Canyon – promising potential
Long Canyon – promising potential Reserves and Resource base (R&R) Upside Potential • Reserves: 1.2 Moz (17 Mt @ 2.1 g/t Au) • 75% of Inventory converted to R&R • Resource: 2.0 Moz (21 Mt @ 3.0 g/t Au) • Mineralization over 5.0km strike length Highlights • Reserves and Resource additions expected by
Slide 35: North America Gold Reserves
North America Gold Reserves Attributable Proven, Probable, and Combined Gold Reserves(1), 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 Reporting Unit Newmont
Slide 36: North America Gold Resources
North America Gold Resources Attributable Gold Mineral Resources(1)(2) - December 31, 2016, Metric units Gold Measured + Indicated Gold Measured Resource Gold Indicated Resource Resource(3) Gold Inferred Resource Newmont Deposits/Districts by Reporting Unit Share Tonnage Grade Au Tonnage Grade Au To
Slide 37: North America Copper Reserves and Resources
North America Copper Reserves and Resources Attributable Copper Reserves(1) Metric Units December 31, 2016 December 31, 2015 Proven Reserves Probable Reserves Proven + Probable Reserves Proven + Probable Reserve Newmont Deposits/Districts by Reporting Unit Share Tonnage (2) Grade Copper (3) Tonnage
Slide 38: 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 39: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Six Months Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per 1) Excludes Depreciation and June 30, 2017 to Sales (1)
Slide 40: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2016 to Sales (1)(2)(3) Costs (4) Exploration A
Slide 41: All-in sustaining costs
All-in sustaining costs Advanced Projects, Research and Treatment All-In Costs Development General Other and All-In Ounces Sustaining Years Ended Applicable Reclamation and and Expense, Refining Sustaining Sustaining (000)/Pounds Costs per December 31, 2015 to Sales (1)(2)(3) Costs (4) Exploration A
Slide 42: 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
Slide 43: Long Canyon Site Tour Storyboards
Long Canyon Site Tour Storyboards September 2017 Newmont Mining Corporation I Nevada Site Tour
Slide 44: North America overview
North America overview Clear strategic priorities set to safely improve value • Step change in underlying safety culture and performance • Arresting unit cost increases and improving commercial culture • Harnessing fit-for-purpose technology to enhance productivity & sustainability • Delivering effi
Slide 45: Long Canyon Phase 1
Long Canyon Phase 1 Delivered on time and below budget – value exceeds business case How we got started Where we are now • Business case ~17% IRR* • Current case >26% IRR* • Feb 2015 – funding approved • Zero harm to date • May 2016 – first ore on heap leach • Exceeding cost and production targets •
Slide 46: Long Canyon Phase 2
Long Canyon Phase 2 Next phase develops deeper extensions and reaches below water table Stage 1 – scoping: • Open pit (OP) expansion UG gold shapes not in plan • Start of underground (UG) Phase 2 Pit • Continued heap leaching Phase 2 UG Stopes • Potential for small oxide mill Phase 1 Pit • Power sup
Slide 47: Long Canyon district potential
Long Canyon district potential Realizing the investment case • Reserves and Resources of 3.2*Moz - with strong exploration upside • Numerous district targets; active exploration focused on most prospective • Phase 2 surface/UG; East Zone; additional NE UG zones • Mineralization open in all direction
Slide 48: Long Canyon district potential
Long Canyon district potential Leveraging Newmont’s exploration expertise • Targeting leverages expertise in geophysics, geochemistry and geologic modeling • Drilling in-progress or planned for all perimeter and outboard targets • Current mineralization over 5 km with additional drilling planned for
Slide 49: Mining overview
Mining overview Vital Statistics Phase 1 pit bottom (meters) 1,737 Permitted area (acres) 3,380 Employees 250 Current mine life 2021 Current process life 2024 Concurrent reclamation ongoing Mining H1-2017 Total open pit (Mtonnes) 15.9 Leach (Mtonnes) 2.3 Waste (Mtonnes) 13.7 Production (Koz) 77 LOM
Slide 50: Processing overview
Processing overview Vital Statistics Throughput (liters/sec) ~160 LOM recovery ~77% Plant efficiency >98% CN concentration (Kg/t soln) 0.15 Carbon handling / processing at Carlin September 2017 Newmont Mining Corporation I Nevada Site Tour
Slide 51: Carlin Site Tour Storyboards
Carlin Site Tour Storyboards September 2017 Newmont Mining Corporation I Nevada Site Tour
Slide 52: Carlin overview
Carlin overview Region’s largest operating complex operating profitably since 1965 Overview Opportunities • 3 open pit (OP) mines • Ongoing Full Potential improvements • 4 underground (UG) mines − Mine planning and ore control • Mill 5 – medium grade and transitional ore − Processing efficiency and
Slide 53: Mining overview
Mining overview Vital Statistics Permitted area (acres) 33,554 Employees 2,028 Current mine life 2028 Current process life 2035 Concurrent reclamation ongoing Mining H1-2017 Total (Mtonnes) 39.2 Leach (Mtonnes) 12.5 Waste (Mtonnes) 25.2 Production (Koz) 432 LOM grade (g/t) 1.12 LOM strip ratio 3:1 E
Slide 54: Processing overview
Processing overview Production by process (Koz) Vital Statistics H1 2017 Mill 5 Mill 6 Leach ore to pad (Mtonnes) 12.5 Mill throughput (Mtonnes) 2.1 1.5 ~20% Feed grade (g/t) 1.5 7.1 Recovery 49% 86% Plant availability 94% 85% ~60% ~20% Leach Mill 5 Mill 6 CARLIN NORTH AREA EMIGRANT (Star Complex, E
Slide 55: Mill 5 concentrate production
Mill 5 concentrate production Mill 5 is a flotation plant which produces gold-containing sulfide-sulfur concentrate, which is fuel for the roaster (Mill 6) and the autoclave (Twin Creeks) Flotation plant improvement • Flotation plant commissioned in 2005 • Plant output reached a ceiling in 2008-09;
Slide 56: Mill continues to outperform
Mill 6 continues to outperform A history of continuous improvement since start-up History • Plant Design: 2.4 Mtonnes • 2016 Production: 3.0 Mtonnes Ongoing Improvements • Grinding Improvements • Crushing (Size Camera – Equipment) • Grit chute • Fan Future Full Potential Projects • Calcine Coolers t
Slide 57: Carlin Underground Storyboards
Carlin Underground Storyboards September 2017 Newmont Mining Corporation I Nevada Site Tour
Slide 58: Mining overview – underground
Mining overview – underground Vital Statistics FY 2016 Total Employees 800 Mine Life 2028 UG drift (Km) 229 FY 2016 H1 2017 Ore (Mtonnes) 2.4 1.2 Waste (Mtonnes) 1.2 0.7 Production (Koz) 540 276 Average grade (g/t) 8.5 8.7 Development (Km) 25 13 Backfill (Mtonnes) 2.0 1.0 Equipment PITRAM dispatch s
Slide 59: Full Potential – Carlin UG
Full Potential – Carlin UG Example – Leeville used Full Potential to focus on underground development and contract mining spending • In the last 12 months (Sep 2016 to Aug 2017), Newmont increased self- performed development rates by 33% • Reduction in contractor development and associated spending
Slide 60: Northwest Exodus progressing on track
Northwest Exodus progressing on track Fans commissioned – designed for autonomous equipment Exodus Ventilation decline shaft complete February 2017 NW Exodus decline Key to growth strategy • Extends mine life by 7+ years • Improves Carlin AISC mineralized footprint • ~90% complete by end of 2017 • R
Slide 61: Mine monitoring & control – Carlin UG
Mine monitoring & control – Carlin UG Semi–autonomous equipment • Significant safety, ergonomics, and health improvements • 10-20% productivity gains • Reduction in equipment & drift damage Successful Pilot trials • NW Exodus designed & setup to accommodate semi-autonomous operations • Successfully
Slide 62: Leeville rehabilitation nearly complete
Leeville rehabilitation nearly complete Predictive approach to challenging geotechnical issues • Drilling data reinterpreted to better predict conditions, requirements • Updated mining methods, designs, and sequence • Installed micro seismic monitoring system Leading in innovation • Designed and imp
Slide 63: Carlin Trend potential
Carlin Trend potential Developing the next generation of underground operations Rita-K /Pete Bajo • Carlin’s next multi-million ounce underground Northwest Exodus • Developing a major high grade deposit Leeville • Mineralization remains open September 2017 Newmont Mining Corporation I Nevada Site To
Slide 64: Next generation UG resource
Next generation UG resource Developing the next multimillion-ounce underground • *Reserves: 0.4 Moz (1.5 Mt at 7.9 g/t); Resource: 0.5 Moz (2.1 Mt at 7.4 g/t) • 0.2 Moz Reserves and 0.2 Moz Resource additions in 2016 • Extended mineralization around Rita K, Full House, Fence and Pete Bajo NW Exodus