Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Merger or Acquisition (March 2019)
17 slides from Newmont's merger presentation, Mar 12, 2019
Slide 1: Cautionary statement regarding forward looking statements
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 to be covered by the
Slide 2: Additional information about the Newmont Goldcorp transaction and where to find it
Additional information about the Newmont Goldcorp 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 solicitation o
Slide 3: Joint Venture (JV) Terms
Joint Venture (JV) Terms1 61.5% Barrick, 38.5% Newmont Operator: Barrick Board of Directors: representation and voting power will reflect ownership levels Technical Advisory, Finance and Exploration committees: equal representation from Barrick and Newmont Includes: Cortez, Goldrush, Goldstrike, Tur
Slide 4: 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 Industry-le
Slide 5: Newmont Goldcorp + JV creates $9.1B of synergies
Newmont Goldcorp + JV creates $9.1B of synergies NPV of Pre-Tax Synergies (US $B) $4.1B of additional value created for Newmont shareholders 34% NAVPS Accretive to Newmont shareholders** Newmont Goldcorp Synergies2,3 ($4.4B) JV Synergies6 $9.1 $4.7 Newmont Barrick Goldcorp $6.2B Total synergy creati
Slide 6: Synergies
Synergies Supply chain Full Potential improvements Total annual improvements $100M $100M $165M $365M Note: Based on incremental Full Potential benefits for Goldcorp assets of $75 per ounce.3 Newmont Goldcorp value creation potential of >$4.4B Value potential remains unchanged after Nevada joint vent
Slide 7: Full Potential improvements to deliver $165M annually
Full Potential improvements to deliver $165M annually Annual pre-tax cash flows from Full Potential benefits3 ($M) Benefits by area ($M) Greatest total value potential from processing improvements – productivity, reliability and cost efficiency Additional value from surface and underground mining in
Slide 8: Newmont Goldcorp's industry leading portfolio
Newmont Goldcorp’s industry leading portfolio* Ahafo Akyem KCGM Boddington Tanami Nevada JV** Strongest portfolio of operating mines and Reserves in favorable jurisdictions Cornerstone assets Optimization assets % of combined Reserves4: ~90% in Americas and Australia * Subject to closing of Newmont
Slide 9: Combined pipeline highlights depth and flexibility
Combined pipeline* highlights depth and flexibility Conceptual/ Scoping Prefeasibility Feasibility Definitive Feasibility Execution Newmont Projects Goldcorp Projects Cerro Negro Expansion Nueva Unión JV Blockcave Musselwhite Expansion Ahafo Mill Expansion Pueblo Viejo Expansion Yanacocha Sulfides C
Slide 10: 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 M
Slide 11: Nevada JV synergies
Nevada JV synergies6 Both transactions generate 34% accretion to Newmont shareholders Consensus NAV per share accretion to Newmont (%) Note: Newmont NAV per share accretion based on street consensus NAV estimates for Newmont and Goldcorp, Newmont and Barrick street consensus Nevada NPVs and estimate
Slide 12: In-person asset and functional diligence
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 districts Operations achieve stable recoveries in low to mi
Slide 13: Cornerstone Goldcorp assets
Large gold-silver deposit with substantial zinc credits Dynamic mineral system with extensive low-grade and localized high-grade gold Strong pipeline of early-stage brownfield exploration targets, including JV’s Full Potential expected to deliver cost and productivity efficiencies Cornerstone Goldco
Slide 14: Éléonore, Porcupine and Red Lake
Goldcorp’s newest Canadian mine with significant exploration potential Leading tailings storage facility management Metallurgical test work suggests ability to improve recoveries Multiple exploration targets within footprint; opportunity to leverage DSG Optimization potential to unlock longer-term v
Slide 15: Nueva Union, Coffee and Norte Abierto
Opportunity to develop two Cu porphyry deposits; experienced partner in Teck Long-life in favorable jurisdiction; brownfields potential at Relincho, La Fortuna La Fortuna open at depth with potential grade extensions Opportunity to optimize mine plan leveraging Newmont’s technical expertise Goldcorp
Slide 16: 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 February 21, 2019 and dis
Slide 17: Endnotes
Endnotes Investors ar encouraged oreed tn rfomaton cntaned inti presentation in canunction hte flowing nots, he Cautionary Statement on se 2 and the factors deserved under te “Risk Factors” section ofthe Company’ Frm IO led woh the SEC on February 21, 2019 and acosue nthe Companys ter recent SEC Mig