Newmont Corporation · NYSE:NEM
Newmont — Q4 2023 Earnings Presentation
42 slides from Newmont's earnings presentation, Feb 22, 2024
Slide 1: Outlook & Portfolio Update
Outlook & Portfolio Update February 2024 OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 1
Slide 2: Cautionary Statement Regarding Forward Looking Statements, Including Outlook
Cautionary Statement Regarding Forward Looking Statements, Including Outlook 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
Slide 3: Newmont Executive Leadership Team
Newmont Executive Leadership Team Tom Natascha Karyn Peter Palmer Viljoen Ovelmen Toth Chief Chief Chief Chief Executive Operating Financial Development Officer Officer Officer Officer Suzy Dean Peter Jennifer Retallack Gehring Wexler Cmil Chief Safety & Chief Chief Chief Sustainability Technology L
Slide 4: Remembering Adam Kennedy: Fatality Risk Management
REMEMBERING Adam Kennedy December 20, 2023, Brucejack COMMITTED TO Fatality Risk Management ▪ Implementing a safety reset across all Newmont sites ▪ Laser focus on the implementation of Fatality Risk Management standards and Critical Controls Verification process ▪ Applying investigation findings at
Slide 5: 2023 Update
Newmont 2023 UPDATE OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 5
Slide 6: 2023 Summary
2023 Summary ATTRIBUTABLE GOLD GOLD ALL-IN FREE CASH FLOW ** PRODUCTION * SUSTAINING COSTS ** 5.5Moz $1,444/oz $88M Plus 891koz of Gold Equivalent Ounces from In line with updated full-year guidance, driven by Includes $513M negative working capital changes and copper, silver, lead and zinc** strong
Slide 7: Our Tier 1 Portfolio
Newmont OUR TIER 1 PORTFOLIO OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 7
Slide 8: Delivering on Our Clear and Consistent Strategy
Delivering on Our Clear and Consistent Strategy Transaction Commitments Today Current Focus The New SUSTAINABILITY STANDARD Newmont Leaders at Each Site Implementing Fatality Risk Management Program* 10 Tier 1 Operations* Delivering >$2B Cash from Portfolio Optimization World-Class PORTFOLIO 6 Antic
Slide 9: Go-Forward Portfolio Focused on Tier 1 Operations
Go-Forward Portfolio Focused on Tier 1 Operations TIER 1 OPERATIONS** NORTH AMERICA Carlin* Cortez* 10 Turquoise Ridge* Leading portfolio of Tier 1 assets to support decades Brucejack of profitable and responsible gold Red Chris AFRICA WORLD-CLASS COPPER-GOLD PROJECTS Ahafo South PAPUA NEW GUINEA LA
Slide 10: Underpinned By Industry-Leading Reserves & Resources
Underpinned By Industry-Leading Reserves & Resources Africa 6% South America 32% North America South America Papua New 15% Guinea 38% 19% Gold Australia Copper 22% 128 Moz RESERVES * 14 Mt RESERVES * + + 155 Moz RESOURCES ** 26 Mt RESOURCES ** Australia Papua New Guinea 21% 25% North America 22% *Fo
Slide 11: Operational Update
Newmont OPERATIONAL UPDATE OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 11
Slide 12: Newmont Operating Leadership Team
Newmont Operating Leadership Team Natascha Bernard Mia Alwyn Viljoen Wessels Gous Pretorius Chief Managing Managing Managing Director – Director – Director – Operating North Papua New Officer America Australia Guinea Mark Rahman David David Rodgers Amoadu Thornton Fry Managing Managing Managing Grou
Slide 13: Managed Operations and Projects in Execution
Managed Operations and Projects in Execution LEGEND NORTH AMERICA Tier 1 Asset* Tier 1 Project in Execution Brucejack Core Managed Operation Red Chris Non-Core Managed Operation Éléonore Musselwhite Porcupine CC&V AFRICA Ahafo South Ahafo North PAPUA NEW Akyem GUINEA Lihir LATIN AUSTRALIA AMERICA Bo
Slide 14: Integrate and Deliver in 2024
Integrate and Deliver in 2024 TANAMI BODDINGTON PEÑASQUITO Maximize Material Movement Progress Laybacks and Improve Progress Gold Layback and Deliver from Deeper Underground Truck Productivity Strong Silver, Lead and Zinc AHAFO CADIA LIHIR Replace Girth Gear and Increase Complete Next Block Cave and
Slide 15: Advancing Key Projects in Execution
Advancing Key Projects in Execution TANAMI EXPANSION 2 Progressing shaft lining and overbreak mitigation in lower section of 1.5km deep production shaft Overall Progress: ~40% complete Total Projected Capital Costs: $1,700 - $1,800M Estimated Completion Date: H2 2027 AHAFO NORTH CADIA BLOCK CAVES Pr
Slide 16: Go-Forward Portfolio Delivers Solid 2024 Outlook
Go-Forward Portfolio Delivers Solid 2024 Outlook* Tier 1 Portfolio* Managed Non-Managed Portfolio Non-Core Operations Operations** Total Assets A T T RIB UT A B LE GOLD PRODUCTION 4.1 1.5 5.6 1.3 (Moz) A T T RIB UT A B LE CO-PRODUCT GEO PRODUCTION 1.9 – 1.9 0.05 (Moz) GOLD ALL-IN SUSTAINING COST ***
Slide 17: Five-Year Outlook
Newmont FIVE-YEAR OUTLOOK OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 17
Slide 18: Tier 1 Assets Realizing Full Potential
Tier 1 Assets Realizing Full Potential BODDINGTON TANAMI PEÑASQUITO Higher Gold and Copper Grades Efficient Access to Prolific Ore Body at Higher Proportion of Gold in the from both the North and South Depth from Tanami Expansion 2 Silver, Lead and Zinc Mix at this Pits at this fully-autonomous mine
Slide 19: Managed Tier 1 Portfolio Drives High Value Growth
Managed Tier 1 Portfolio Drives High Value Growth ATTRIBUTABLE GOLD EQUIVALENT (GEO) PRODUCTION * Moz 8.3M 10.0 Gold Equivalent Ounces in 2028E ** 6.7Moz z Gold 8.0 145kt z Copper 6.0 25Moz z Silver 4.0 85kt z Lead 2.0 165kt z Zinc - 2023 NEM + 2024E 2025E 2026E 2027E 2028E NCM**** 2kt z Molybdenum
Slide 20: Margin Expansion Drives Free Cash Flow Growth
Margin Expansion Drives Free Cash Flow Growth ALL-IN SUSTAINING COSTS* DEVELOPMENT CAPITAL $/oz $B $1,400 $1.5 $1,200 $1.0 $1,000 $0.5 $800 $- 2023 NEM + 2024E 2025E 2026E 2027E 2028E 2023 NEM + 2024E 2025E 2026E 2027E 2028E NCM** NCM** Reducing Costs and Maintaining Capital Discipline *All-In Susta
Slide 21: Six World Class Copper-Gold Projects
Six World Class Copper-Gold Projects RED CHRIS BLOCK CAVE WAFI-GOLPU BLOCK CAVE YANACOCHA SULFIDES British Columbia Papua New Guinea Peru 2.2Mtonnes Copper Reserves & Resources 4.0Mtonnes Copper Reserves & Resources 1.2Mtonnes Copper Reserves & Resources 7.8Moz Gold Reserves & Resources 12.6Moz Gold
Slide 22: Capital Allocation
Newmont CAPITAL ALLOCATION OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 22
Slide 23: Shareholder-Focused Capital Allocation Strategy
Shareholder-Focused Capital Allocation Strategy 1 Financial Flexibility ~$7.0B ~$3.0B ~$8.0B TARGET LIQUIDITY* TARGET CASH* TARGET DEBT BALANCE** 2 Sustainable Investment ~$1.3B ANNUAL DEVELOPMENT CAPITAL*** 3 Return of Capital $1/share $1.0B ANNUALIZED BASE DIVIDEND* SHARE-REPURCHASE PROGRAM** Subj
Slide 24: Closing Remarks
Newmont CLOSING REMARKS OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 24
Slide 25: The Industry's Leading Gold and Copper Business
The Industry’s Leading Gold and Copper Business* 10 Tier 1 Operations ** $1,200 All-in Sustaining Costs ** 6 World-Class Copper-Gold Projects $1.3B Annual Development Capital ** $1/share Annualized Base Dividend ** $1B Share Repurchase Program ** *Referring to the gold industry, based on gold and co
Slide 26: Appendix
Newmont APPENDIX OUTLOOK & PORTFOLIO UPDATE – FEBRUARY 2024 NEWMONT CORPORATION 26
Slide 27: Delivering $500M of Synergies by End of 2025
Delivering $500M of Synergies by End of 2025* Realized Identified $200M $500M $200M $100M G&A SUPPLY CHAIN FULL POTENTIAL TOTAL SYNERGIES ▪ $42M of synergies realized in ▪ $7M in synergies realized ▪ Increasing mining and ▪ $49M in synergies realized Q4 2023 during Q4 2023 processing productivity du
Slide 28: Basis For Disciplined 2024 Outlook
Basis For Disciplined 2024 Outlook PRICING ASSUMPTIONS AND SENSITIVITIES (as of February 22, 2024) ASSUMPTION CHANGE (-/+) REVENUE AND COST IMPACTS ($M)** Tier 1 Portfolio Total Newmont Gold ($/oz) $1,900 $100 $550 $675 Australian Dollar $0.70 $0.05 $150 $190 Canadian Dollar $0.75 $0.05 $40 $100 Oil
Slide 29: 2024 Outlook by Site as of February 22, 2024
2024 Outlooka by Site as of February 22, 2024 Attributable Consolidated Attributable Development Consolidated Attributable Consolidated CAS All-In Sustaining Sustaining Capital Capital 2024 Outlook Production (Koz) Production (Koz) ($/oz) Costsb ($/oz) Expenditures ($M) Expenditures ($M) Managed Tie
Slide 30: 2024 Consolidated Expense and Capital Outlook
2024 Consolidated Expense and Capital Outlook GUIDANCE METRIC 2024E Sustaining Capital ($M) Managed Tier 1 Portfolio $1,210 Non-Managed Tier 1 Portfolio $290 Total Tier 1 Portfolio $1,500 Non-Core Assets $300 Total Newmont Sustaining Capital* $1,800 Development Capital ($M) Managed Tier 1 Portfolio
Slide 31: 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 analysts to understand the results of the
Slide 32: 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 33: 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 34: 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 35: All-in Sustaining Costs
All-in Sustaining Costs Current GAAP measures used in the mining industry, such as cost of goods sold, do not capture all of the expenditures incurred to discover, develop and sustain production. Therefore, Newmont calculates All-In Sustaining Costs (“AISC”) based on the definition published by the
Slide 36: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Sustaining Costs Research and Treatment Capital and All-In Applicable Development Other and Lease All-In Ounces Sustaining Three Months Ended to Reclamation and General and Expense, Refining Related Sustaining (000) Costs Per December 31, 2023 Sales(1)(2)(3
Slide 37: All-in Sustaining Costs
All-in Sustaining Costs Advanced Projects, Sustaining Costs Research and Treatment Capital and All-In Applicable Development and Lease All-In Ounces Sustaining Year Ended to Reclamation and General and Other Refining Related Sustaining (000) Costs Per December 31, 2023 Sales(1)(2)(3) Costs(4) Explor
Slide 38: Gold All-in Sustaining Costs - 2024 Outlook
Gold All-in Sustaining Costs - 2024 Outlook A reconciliation of the 2024 Gold AISC outlook to the 2024 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 39: 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 40: 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, 2023 filed with the SEC on October 26, 2023. Investors are reminded that expectations regarding outlook and guidance, including f
Slide 41: Endnotes
Endnotes Full Potential. Full Potential improvement value creation is considered an operating measure provided for illustrative purposes, and should not be considered a GAAP or non-GAAP financial measures. Full Potential amounts are estimates utilized by management that represent estimated cumulativ
Slide 42: Endnotes
Endnotes EBITDA and Adjusted EBITDA. EBITDA and Adjusted EBITDA are a non-GAAP financial measures. EBITDA is calculated as Earnings before interest, taxes and depreciation and amortization. For management’s EBITDA and Adjusted EBITDA calculations and reconciliation to the nearest GAAP metric, please