Newmont Corporation · NYSE:NEM
Newmont — Newmont Mining — Investor Day (May 2010)
121 slides from Newmont's investor day presentation, May 27, 2010
Slide 1: Investor Day Thursday May 27, 2010
Investor Day Thursday May 27, 2010
Slide 2: Cautionary Statement
Cautionary Statement 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 statements are intended to be covered by the safe harbor created by such
Slide 3: Agenda
Introduction Strategic Overview Regional Updates North America South America Asia Pacific Africa Conclusion Agenda 3
Slide 4: Newmont's Executive Leadership Team
Newmont's Executive Leadership Team 4 Richard O'Brien - President and CEO Russell Ball - Executive Vice President and CFO Randy Engel - Executive Vice President, Strategic Development Brian Hill - Executive Vice President, Operations Guy Lansdown - Executive Vice President, Discovery and Development
Slide 5: Additional Members of Newmont's Leadership Team
Additional Members of Newmont's Leadership Team 5 Jeff Huspeni - Senior Vice President, African Operations Tom Kerr - Senior Vice President, North American Operations Tim Netscher - Senior Vice President, Asia Pacific Operations Carlos Santa Cruz - Senior Vice President, South American Operations Gr
Slide 6: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 7: 2010 Priorities and Objectives
2010 Priorities and Objectives "Delivering on Our Commitments" 7 Operations continue to meet or exceed expectations with ongoing focus on cost containment Commercial production achieved at Boddington in November 2009 Record revenue, earnings and operating cash flow in 2009 - strong Q1 2010 Significa
Slide 8: Why Newmont?
Why Newmont? Execution Operational excellence and strong track record Cash Flow Superior operating and free cash flow generation TODAY Flexibility Strong balance sheet to fund internal development and strategic opportunities Optionality Robust pipeline of development opportunities Leadership Leading
Slide 9: Execution - Operational Excellence
Stable, diverse production base Newmont's scope and scale provides transferable knowledge and skills globally Business efficiency and cost containment opportunities still exist Taking safety to the "next level" - Eliminate fatalities and serious injuries 9 9 Execution - Operational Excellence 9
Slide 10: Global Portfolio of Operations
10 Nevada Carlin Leeville/Turf Midas Phoenix Twin Creeks La Herradura Yanacocha Ahafo Boddington Batu Hijau Waihi Kalgoorlie Jundee Jundee Execution Global Portfolio of Operations 2010 Equity Gold Production (koz) (Mid-point of 2010 Outlook) ~5.4 Moz
Slide 11: 2010 Outlook: Gold and Copper Production and CAS
11 Gold Equity Production Equity Production CAS Region (000 oz) % of total ($/oz) North America 1,740 - 1,885 33% $575 - $615 South America 750 - 810 14% $360 - $400 Asia Pacific 2,225 - 2,435 44% $400 - $440 Africa 460 - 500 9% $515 - $555 Total Gold 5.3 - 5.5 million $450 - $480 Total Gold (with B
Slide 12: Costs Applicable to Sales per Ounce - Current and Outlook
Execution Costs Applicable to Sales per Ounce - Current and Outlook 12 2009 vs. Q1 2010 CAS ($/oz) Q1 2010 vs. 210 CAS Outlook ($/oz) Currently at upper end of 2010 outlook, trend improving due to projected increase in lower cost production Maintaining 2010 CAS outlook range of $450 - $480/oz 1 1 1
Slide 13: Focused on maintaining our leadership position in safety
Execution Focused on maintaining our leadership position in safety Average = 1.39 Commitment to safety is priority #1 The success of our safety effort is demonstrated through our industry leading performance Committed to eliminating fatalities and serious injuries 13 2009 Total Reportable Accident F
Slide 14: Create Operating and Business Efficiencies
Create Operating and Business Efficiencies Sustainable Value Creation Value realization by empowering all employees with disciplined knowledge and tools. Operations Standards and Standardization (OSS) Continuous Improvement (CI) Management Operating System (MOS) Vision Maximize the value of our asse
Slide 15: Increasing Gold Mill throughput by 18%
Increased from "nameplate" 5Mmtpa1 to 5.9Mmtpa1 Higher utilization of installed power Coarser grind without recovery loss Design de-bottlenecking in circuit Operational optimisation & controls Leverage best practice across crews Ore blending to reduce variability Opportunities beyond 5.9Mmpta Debott
Slide 16: Cash Flow - Superior Generation in a Bullish Price Environment
Continued gross margin growth Exposure to escalating gold and copper price - TODAY Growing operating and free cash flow Strong return on invested capital 16 16 Cash Flow - Superior Generation in a Bullish Price Environment 16
Slide 17: Margin expansion generating strong cash flow
Cash Flow Margin expansion generating strong cash flow Gold Gross Margin- 2005 to 2010 Proforma1 1 2010 proforma based on midpoint of 2010 CAS outlook and avg. realized gold price of $1,100/oz and copper 17 17
Slide 18: Leverage to Gold Price - Equity Operating Cash Flow
Cash Flow Leverage to Gold Price - Equity Operating Cash Flow 1 Production, CAS, and tax rate are based on the mid-point of 2010 Outlook 2 Includes G&A ($165M), Interest exp. ($275M), Exploration exp.($200M) and Advanced Projects/R&D ($230M) are based the midpoint of 2010 Outlook 3 Tax expense inclu
Slide 19: Leverage to Gold Price - Equity Free Cash Flow
Cash Flow Leverage to Gold Price - Equity Free Cash Flow 2010 Proforma Equity Free Cash Flow Sensitivity 19 Incremental 2010 OCF = ~$350 million per $100 change in gold price Proforma 2010 equity free cash flow at mid-point of outlook (1,100/oz gold and $3/lb copper1) All numbers rounded to nearest
Slide 20: Strong cash flow generating real Return on Invested Capital
Newmont generating real returns for investors in a rising gold price environment 20 20 Cash Flow Strong cash flow generating real Return on Invested Capital 20 NEM Average Realized Gold Price Return on Invested Capital
Slide 21: Bullish Gold Environment - Our Thesis on Commodities
Bullish Gold Environment - Our Thesis on Commodities Can be Summarized in the Following Slides Source: McKinsey (3/28/10) 21
Slide 22: Bullish Gold Environment - Fiscal & Monetary Inflation
Bullish Gold Environment - Fiscal & Monetary Inflation "Quantitative Easing:" A License To Print? "Quantitative Easing:" A License To Print? "Quantitative Easing:" A License To Print? Source: Martin Murenbeeld (4/14/10) 22 22
Slide 23: Fiscal & Monetary Inflation - Greece, The Euro & Contagion
Bullish Gold Environment - Fiscal & Monetary Inflation Greece, The Euro & "Contagion" 23 23
Slide 24: Bullish Gold Environment - Investment Demand Increasing
Bullish Gold Environment - Investment Demand Increasing ETF's Changed the "Game" Source: GFMS, Gold Survey 2010 Source: UBS (05/12/10) 24 24
Slide 25: Bullish Gold Environment - Gold Supply Under Pressure
Bullish Gold Environment - Gold Supply Under Pressure Moderating Mine Supply and Official Sector Sales 25 Source: GFMS Gold Price Global Mine Supply (Tonnes) 25
Slide 26: Bullish Gold Environment - Declining Central Bank Sales
Bullish Gold Environment - Declining Central Bank Sales Source: UBS (5/5/10) and World Gold Council, GID (4/10) 26 26
Slide 27: Significant Potential New Investment Capacity for Gold
Significant Potential New Investment Capacity for Gold Only $200 Billion in Commodities out of $40 Trillion Managed Assets Source: World Gold Council (3/10) Martin Murenbeeld (4/14/10) 27 27
Slide 28: Flexibility - Strong balance sheet to fund opportunities
28 28 Flexibility - Strong balance sheet to fund opportunities Exceptional liquidity-TODAY "Pre-funded" robust project pipeline in each region Opportunistic portfolio enhancing acquisitions Targeted return of capital to shareholders 28
Slide 29: Strong Balance Sheet provides maximum flexibility
Flexibility Strong Balance Sheet provides maximum flexibility 1 COS - Canadian Oil Sands Trust Internal Project Development Exploration Opportunistic M&A Return of Capital 29 Over $6 Billion Available Liquidity Revolver Capacity, $1.7B COS1 and Other Marketable Securities, $1.2B Cash and Cash Equiva
Slide 30: Internal Project Development and Exploration
Flexibility Internal Project Development and Exploration Other Nevada Portfolio Other APAC Portfolio Other Peru Portfolio Gold Quarry West Wall Iron Ore Silver Gold Copper Greater Leeville/ Turf Conga Akyem McPhillamys Hope Bay Elang Merian Total Asset Potential Greater Gold Quarry Emigrant Phoenix
Slide 31: Opportunistic M&A
Flexibility Opportunistic M&A Track record of improving portfolio quality and life of mine 31 2008 2009 Hope Bay Acquisition Development: Akyem Subika Expansion Conga Hope Bay Nevada Portfolio Boddington acquisition $2.0B debt financing 2010 2011 - 2014 Gold grade District-scale exploration Geo-poli
Slide 32: Examples of past disciplined acquisition criteria
Flexibility Opportunistic M&A Examples of past disciplined acquisition criteria Growth in AAA rated country 100% ownership District potential / Large land position Potential for long mine life Higher gold grades 32 Grow AAA reserves and production 100% ownership Low cost immediate production Long mi
Slide 33: Optionality - Extending reserve life; enhancing project pipeline
Investing in internal gold and copper growth opportunities Improving the quality of our asset base Continued success in near mine exploration Major focus on generative exploration 33 33 Optionality - Extending reserve life; enhancing project pipeline 33
Slide 34: Accelerating projects and exploration success in every region
Chaquicocha UG Tanami Shaft Ahafo North Turf Greater Gold Quarry Other Nevada Portfolio Other APAC Portfolio Conga Other Peru Portfolio McPhillamys Boddington Gold Quarry West Wall KCGM/ Golden Pike Greater Leeville/ Turf Iron Ore Silver Gold Copper Saramacca Elang Emigrant Phoenix Cu Leach Hope Bay
Slide 35: Equity investment of $4-5 billion to execute advanced projects
Optionality Equity investment of $4-5 billion to execute our advanced projects with 30- 45 million targeted equity ounces1 and 4-5 billion targeted equity pounds2 Nevada La Herradura Yanacocha Ahafo Batu Hijau Tanami Kalgoorlie Jundee Boddington Waihi Operations Major Projects Hope Bay, Canada Conga
Slide 36: Advancing earlier stage projects
Nevada Portfolio La Herradura Yanacocha Ahafo Batu Hijau APAC Portfolio Kalgoorlie Jundee Boddington Waihi Operations Major Projects Hope Bay Subika Expansion Akyem Tanami Shaft Phoenix Copper SX/EW Chaquicocha Underground Merian Saramacca Optionality Simultaneously advancing up to 20 million target
Slide 37: Global Opportunities
Global Opportunities Beyond the substantial gold and copper targets in early and advanced stage projects, we are aggressively advancing exploration opportunities Additional Future Projects Next Phase Development Up to ~20 Moz of Au and ~2 Blbs of Cu (~6 Moz and 1.2 Blbs in Reserves1) Current Phase D
Slide 38: Global Exploration - Increasing funding
Near Mine Generative Optionality Global Exploration - Increasing funding to increase reserves and enhance chances of success in discovery 38 Expensed Exploration Outlook is $190-220M in 2010 for an expensed plus capital total of $250-280M
Slide 39: Generative Exploration
39 Optionality Generative Exploration - Making discoveries by leveraging our land position in the world's most prospective domains PNG-Solomon Caribbean Alaska Mexico Guyana Shield Andes Australia West Africa Discoveries Generative Exploration program Cassador, Suriname Hides Creek, PNG McPhillamys
Slide 40: Near Mine Exploration
40 Optionality Near Mine Exploration - Supports production growth, provides reserve replacement and optimizes existing land position in world-class districts 1. Achieve production growth plan 2. Replace 70% to 100% of 3 year reserves 3. Optimize assets through 'wingspan' drilling 4. Advance diversif
Slide 41: Discovery and reserve additions across global districts
Optionality Near Mine Exploration Discovery and reserve additions across our global districts ounces1. Note: Reserve additions excluding acquisitions. 41
Slide 42: 2010 programs advance our project pipeline
Optionality 2010 programs will quickly advance our project pipeline of opportunities Other Nevada Portfolio Other APAC Portfolio Other Peru Portfolio Gold Quarry West Wall Iron Ore Silver Gold Copper 42 Greater Leeville/ Turf Conga Akyem Euronimba Fe McPhillamys Hope Bay Exodus Elang Merian Subika E
Slide 43: Leadership - sustainability, community relations and human resources
Leadership in sustainability and community relations Develop leaders and grow the talent pipeline 43 43 Leadership - Leading sustainability, community relations and human resource development practices 43
Slide 44: Leadership in sustainability and community relations
Leadership Leadership in sustainability and community relations Third consecutive year selected to the Dow Jones Sustainability World Index Ranked 16th overall on 100 Best Corporate Citizens list profiled by Corporate Responsibility Magazine Newmont is the sole mining company featured in the top 20
Slide 45: Human Capital Workforce Planning
Leadership Human Capital Workforce Planning Our Focus: Global workforce planning Recruit top talent and supplement as needed in: Leadership levels Engineering and project disciplines Aggressive attraction and retention strategy to address the expected rebound of the labor market Partner with our EPC
Slide 46: Develop Leaders and Grow the Talent Pipeline
Leadership Develop Leaders and Grow the Talent Pipeline Newmont Leadership Pipeline Our Focus: Senior Management succession and development Leadership development at all levels Increase employee engagement levels Supplement and build technical leadership Build early talent pipeline through universit
Slide 47: Why Newmont?
Why Newmont? Execution Operational excellence and strong track record Cash Flow Superior operating and free cash flow generation TODAY Flexibility Strong balance sheet to fund internal development and strategic opportunities Optionality Robust pipeline of development opportunities Leadership Leading
Slide 48: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 49: Newmont Global Portfolio
49 Major Project Operation Newmont Global Portfolio Optionality Growth Cash Flow Execution
Slide 50: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 51: Newmont North America
51 Major Project Operation Nevada Portfolio Nevada Operations Carlin Leeville/Turf Midas Phoenix Twin Creeks Hope Bay La Herradura Newmont North America
Slide 52: North America - Optionality
North America "Optionality" 45-year history of sustainable production and reserve growth Mature district with ongoing exploration potential in Nevada Track record of operational excellence Significant land position of approximate 2 million acres Successful remediation of Gold Quarry geotechnical eve
Slide 53: Nevada Operations
North America Nevada Operations 53 Newmont ~2M Acres H u m b o l d t Winnemucca Battle Mountain Carlin Elko P e r s h i n g L a n d e r E u r e k a E l k o TRJV Twin Creeks Buffalo Valley Phoenix Cu Leach Midas Deep Post Leeville Gold Quarry Emigrant Turf Sage Mill Phoenix Mill Mill 5 Mill 6 Midas M
Slide 54: Nevada - Then and Now
North America Nevada - Then and Now 54 1966 Gold reserves: 3.5 Mozs Production: 260 Kozs Employment: 100 1 - Open pit mine 1 - Oxide mill This 1966 magazine featured Newmont's Carlin mine and stated claims would be worked out by 1980. 2009 Gold reserves: 28.5 Mozs Production: 2.0 Mozs Employment: 3,
Slide 55: Nevada - Underground Success Story
North America Nevada - Underground Success Story 55 55
Slide 56: Nevada - Sustainability: Sales and Reserves
North America Nevada - Sustainability: Sales and Reserves 56 56 XXX XXXX
Slide 57: North America Production and CAS Trends
North America Production and CAS Trends 57 2011 to 2012 Outlook Production to remain at 2010 levels with the potential for slightly higher production in Nevada and La Herradura and, in 2012, mining deferred ounces from Gold Quarry Costs applicable to sales expected to remain near 2010 levels, with p
Slide 58: North America Opportunities and Challenges
Opportunities Cost containment through rationalization of suppliers Advance major projects in Nevada and Hope Bay Potential further diversification into copper Expansion opportunity at La Herradura Continued greenfield exploration in high-potential district Challenges Permitting timeframes Changes t
Slide 59: Gold Quarry remediation efforts
59 North America Gold Quarry remediation efforts Southwest Energy Relocated MRP Relocated James Creek Tails Fuel Island Relocated 5.1M tons of un-weighting (120' vertical) 4 Scarp Shots Reducing Scarp Angle to 45-60 degrees
Slide 60: Continuous Improvement - Twin Creeks Geho Project
60 Geho Pump Addition Increases tonnage by 30 tph at autoclave Increases gold production by ~ 29,000 ozs per year Payback ~2 years Capital Cost $9.5M Online Q1 2010 New Geho Pump Installation North America Continuous Improvement - Twin Creeks Geho Project
Slide 61: Innovation - Phoenix Crusher Test
61 Test Unit 200 tph Annual Incremental Production 16k oz Au 147k oz Ag 2.2M lbs Cu Commissioning June 2010 Commercial Unit 400 tph Annual Incremental Production 26k oz Au 280k oz Ag 4.4M lbs Cu Commissioning 2012 North America Innovation - Phoenix Crusher Test
Slide 62: North America Project Pipeline
North America Project Pipeline 62
Slide 63: Gold Quarry West Wall
North America Gold Quarry West Wall - Stage 4 (Bankable Feasibility) Expanding a world class asset 25 Moz produced at Gold Quarry since 1982 63 1 No ounces in NRM as of 12/31/2009 2 All figures are unescalated and based upon current business plan assumptions 3 Excluding escalation, capitalized inter
Slide 64: Phoenix Copper Leach
North America Phoenix Copper Leach - Stage 3 (Feasibility) Decrease Phoenix gold CAS by $50- 100/oz Increase reserves by processing material otherwise mined as waste Additional copper opportunities in Nevada: Copper Basin and Greater Phoenix Challenges - permit timeline; acid price outlook Layout of
Slide 65: Greater Leeville/Turf
Significant Intercept Potential resource Expansion Reserve & NRM EOY 2009 (CGX2) (CGX8) Turf Leeville Up to 6 Moz potential1 in addition to the current 4.4 Moz2 in reserves and NRM New exploration drill intercepts have expanded known Leeville/Turf mineralization Results part of expansion campaign: 2
Slide 66: Greater Leeville/Turf mineralization open
North America Greater Leeville/Turf New mineralization open to North, East, West and at depth Expanded exploration program: $25M additional investment Additional 22 holes, ~20,000 m Exploration distance from shaft: ~ 3,500 m North ~ 950 m East ~ 1,150 m West Studies ongoing to evaluate production ca
Slide 67: Hope Bay
Exploration results through Q1 2010 confirm asset potential1 up to 9 Moz 80 km greenstone belt Positive drill results in 2009: High grade expansions at Doris and Patch 14 (south of Madrid) Identified 45+ district targets, positive drill results on first six Favourable comparatives to other belts Cha
Slide 68: Hope Bay - Advancing Doris North underground development
Phase 1: Initial Doris North Underground Prove mineral continuity and operating costs Initial underground mining production Phase 2: Potential to develop known and expanded resource Establish infrastructure to develop district Phase 3: Develop district potential North America Hope Bay - Advancing Do
Slide 69: Hope Bay - 2010 Program
North America Hope Bay - 2010 Program 2010 Program: $180-200M Sealift supports 2010 & 2011 programs ~ 10,000 tons of cargo ~ 14 million liters diesel fuel ~ 14 vessels, 9 ports Initiate construction of Doris North project infrastructure Camp expansion Underground drifting Civil works Advance develop
Slide 70: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 71: Newmont South America
71 Major Project Operation Conga Yanacocha Newmont South America
Slide 72: South America - Execution
South America "Execution" Yanacocha remains a world class gold mine in a highly prospective district Entering next phase of Yanacocha's mine life Extensive land position with significant gold and copper mineralization Extend mine life with development of Conga project Ongoing community relations eff
Slide 73: Yanacocha Operations
South America Yanacocha Operations 73 0 7.5 15 3.75 Kilometers Galeno Michiquillay Hilo Rico Legend Au/Cu Porphyry Deposits Gold Deposits Exploration Areas La Zanja Claims Minera Yanacocha JV Claims Cerro Negro Quilish La Quinua Chaquicocha Yanacocha Maqui Maqui CAJAMARCA Yanacocha Gold District Por
Slide 74: South America Production and CAS Trends
74 South America Production and CAS Trends 2011 to 2012 Outlook Production to remain near 2010 levels Costs applicable to sales expected to remain near 2010 levels
Slide 75: South America Opportunities and Challenges
South America Opportunities and Challenges - 2011 & Beyond 75 Opportunities Deliver Conga on time and on budget as the 2nd foundational asset in the region Cash flow diversification from gold & copper based production Develop Suriname Introduce underground mining at Yanacocha as a "phase 1" step int
Slide 76: South America Project Pipeline
South America Project Pipeline 76
Slide 77: Conga
South America Conga1 Stage 4 (Bankable Feasibility) Successful public hearing in March 2010 Basic engineering underway Building development team and execution approach 1 All figures are based on a 100% equity interest; Newmont's current interest is 51.35% 2 Assumes permits received by end of 2010 3
Slide 78: Conga - 2010 Program
South America Conga - 2010 Program 78 Presented EIA in February - expect approval in Q4 2010 EPC contractor (Fluor) selected Geotechnical and infill drill campaign Initial site works for access road and camp Procure process equipment and long lead mine equipment Gate 4 (full funds) decision expected
Slide 79: Chaquicocha Underground and Yanacocha Sulfides
South America Chaquicocha Underground1 Stage 2 (Pre-feasibility) Chaquicocha Underground Up to 2.2 Moz potential2 underground oz Au and 52 Mlb Cu opportunity 2010 drilling: 11 km (5,404 m drilled to date) Advance process flow sheet testing Leverage Gold Mill infrastructure Yanacocha Sulfides1 Advanc
Slide 80: Suriname and French Guyana
178,000 hectares of exploration rights Multiple Discoveries: Merian1 (Stage 2) Up to 6 Moz potential4 Negotiating Mineral Agreement with Government of Suriname Oxide free milling Saprolite feeds Saramacca2 (Stage 1): Up to 1.3 Moz potential4 2010 drilling: 3,500 m Cassador3 (Generative Exploration):
Slide 81: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 82: Newmont Asia Pacific
82 Major Project Operation Boddington Batu Hijau Waihi Kalgoorlie Tanami Jundee Newmont Asia Pacific
Slide 83: Asia Pacific - Cash Flow
Asia Pacific "Cash Flow" Commercial production achieved at Boddington- largest gold mine in Australia Gold and Copper leverage from Phase 5 at Batu Hijau; development of Phase 6 underway Ramp-up Boddington to full-capacity Advance APAC project portfolio Continue to advance opportunities in Indonesia
Slide 84: Asia Pacific Production and CAS Trends
Asia Pacific Production and CAS Trends 84 2011 to 2012 Outlook Production to remain near 2010 levels with production from Boddington and extended mine life at Jundee and Waihi offsetting declining production at Tanami and Batu Hijau (Phase 6) Costs applicable to sales expected to increase as higher
Slide 85: Asia Pacific Opportunities and Challenges
Asia Pacific Opportunities and Challenges - 2011 & Beyond Opportunities Life extensions progressing at all operations Advance Elang copper/gold porphyry and other Contract Of Work (COW) opportunities Sale of excess power to grid at Boddington Paste fill plant at Tanami Further energy efficiency proj
Slide 86: Boddington Ramp-Up Progress
Asia Pacific Boddington Ramp-Up Progress Q4 '09 Q1 '10 Production Au (Koz) 118 158 Production Cu (Mlbs) 10 14 CAS ($/oz) Co-product $468 $532 CAS ($/oz) By-product $352 $436 86 86
Slide 87: Boddington Update
Asia Pacific Boddington Update Achievement of full capacity expected in late 2010 Shifting more attention to testing full potential of this world class asset: Full Mineralization 'wingspan' being determined Plant expansion opportunities to be reviewed Molybdenum recovery potential Regional targets b
Slide 88: Boddington Mining Process Video
Asia Pacific Boddington Mining Process 88 Boddington Video
Slide 89: Batu Hijau Divestiture Update
Asia Pacific Batu Hijau Divestiture Update December 31, 2009 Direct Batu Hijau Ownership through NTP 35.44% PTPI advance & voting arrangements 17.00% Economic ownership for Q1 results 52.44% 7% Divested March 15, 2010 (3.94%) $247 million proceeds ($139 million NEM share) Economic Ownership & Proven
Slide 90: Batu Hijau Update
Asia Pacific Batu Hijau Update Phase 6 stripping recommenced in May 2010 to extend mining to 2017 and processing to 2028 Phase 7 economic at current prices - preparations well advanced for designs Throughput expansion options advancing through in Stage-Gate Process Pinjam Pakai permit received Regio
Slide 91: Asia Pacific Project Pipeline
Asia Pacific Project Pipeline 91
Slide 92: KCGM - Golden Pike
Asia Pacific KCGM1 - Golden Pike Stage 4 (Bankable Feasibility) Waste stripping commenced in January 2010 Potential to increase production through further underground development Challenge - heated market 1 All figures based on 100% equity interest; Newmont's current interest is 50%. No ounces in NR
Slide 93: Tanami Shaft
Asia Pacific Tanami Shaft Stage 3 (Feasibility) Develop production shaft Offers expansion to existing operations Increases mine life to 2020 Challenge - heated market Potential: Up to 2 Moz potential in addition to the current 1.6 Moz in reserves1 and 1.4M oz in NRM Average Annual Prod (1st 5 years)
Slide 94: Jundee Near Mine Extensions
Asia Pacific Jundee Near Mine Extensions Current Jundee Operations +300 koz/year with production life extending to 2015 Jundee Expansion Projects Began mining Gateway New production center opens up additional exploration Opportunity to add reserves with expansions on: Jundee veins, Cardasian Vein an
Slide 95: Boddington Expansion
Asia Pacific Boddington Expansion (Multiple Stages) 95 Current reserve of ~21 Moz Au1 Up to 4 Moz Au and 0.5 Blb Cu expansion potential2 Determine full extent of Boddington Pit extension potential Enables facility optimization Potential lateral and depth extensions Belt exploration Challenge - land
Slide 96: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 97: Newmont Africa
97 Major Project Operation Ahafo Akyem Newmont Africa
Slide 98: Africa - Growth
Africa "Growth" Youngest region in Newmont portfolio Consistent operational performance Significant district and regional potential Expand Ghana to +1 million ounces of production Advance development of Ahafo near-mine opportunities Develop Akyem 98 98
Slide 99: Africa - Newmont Ghana
Africa Newmont Ghana NEWMONT. Investor Day May 27, 2010
Slide 100: Africa Production and CAS Trends
Africa Production and CAS Trends 100 2011 to 2012 Outlook Production to remain near 2010 levels Costs applicable to sales expected to remain near 2010 levels
Slide 101: Africa Opportunities and Challenges
Africa Opportunities and Challenges - 2011 and beyond Opportunities Akyem underground potential Resource additions at Ahafo South including Apensu oxides Advance Subika underground opportunities Advance development of Ahafo North open pit and underground deposits Ahafo mill expansion Exploration pot
Slide 102: Africa Project Pipeline
Africa Project Pipeline Analg Projet A 102 ae NewionrT. Investor Day May 27, 2010
Slide 103: Akyem
Mining Lease received in January 2010 Land negotiations are progressing Potential underground exploration upside 1 Reserves as of 12/31/09 2 All figures are unescalated and based upon current business plan assumptions 3 Excluding capitalized interest and sunk costs Africa Akyem Stage 4 (Bankable Fea
Slide 104: Akyem - Stage Bankable Feasibility
Africa Akyem Stage 4 (Bankable Feasibility) Basic engineering complete, scheduled to complete detailed engineering in 4Q 2010 Testing for ore flow characteristics complete Updating model to develop improved mine and processing plan Gate 4 (full funds) decision expected in second half of 2010 Challen
Slide 105: Subika Expansion
Progress to Date Up to 3 Moz potential1 in addition to the 5.8 Moz currently in reserves2 and NRM Opportunity for major pit layback and underground operation below the existing Subika pit Exploration decline at ~650 meters 2010 drilling from underground and surface 28 km of underground exploration a
Slide 106: Ahafo North
Up to 4 Moz potential with 3.2 Moz in reserves1 and .6Moz in NRM1 Northern extension of Ahafo Greenstone belt (+30 km long) Opportunities for multiple open pits Exploration drilling continues with early signs of future underground extensions 2010 budgeted meters: 4,500 m Leveraging existing processi
Slide 107: Nimba
Africa Nimba1 Stage 2 (Pre-Feasibility) Liberia 1 All figures are based on a 100% equity interest; Newmont's current interest is 43.5% 107 Iron ore deposit in Guinea Newmont/BHP Billiton equal joint venture - 43.5%/43.5%; 13% Areva Up to 1B tonnes iron ore potential Diversification opportunity with
Slide 108: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 109: Execution - Operational excellence
Stable, diverse production base Newmont's scope and scale provides transferable knowledge and skills globally Business efficiency and cost containment opportunities still exist Taking safety to the "next level" - Eliminate fatalities and serious injuries 109 109 Execution - Operational excellence
Slide 110: Cash Flow - Superior generation in a bullish price environment
Continued gross margin growth Exposure to escalating gold and copper prices - TODAY Growing operating and free cash flow Strong return on invested capital 110 110 Cash Flow - Superior generation in a bullish price environment
Slide 111: Flexibility - Strong balance sheet to fund opportunities
111 111 Flexibility - Strong balance sheet to fund opportunities Exceptional liquidity-TODAY "Pre-funded" robust project pipeline in each region Opportunistic portfolio enhancing acquisitions Targeted return of capital to shareholders
Slide 112: Optionality - Extending reserve life; enhancing project pipeline
Investing in internal gold and copper growth opportunities Improving the quality of our asset base Continued success in near mine exploration Major focus on generative exploration 112 112 Optionality - Extending reserve life; enhancing project pipeline
Slide 113: Why Newmont?
Why Newmont? Execution Operational excellence and strong track record Cash Flow Superior operating and free cash flow generation TODAY Flexibility Strong balance sheet to fund internal development and strategic opportunities Optionality Robust pipeline of development opportunities Leadership Leading
Slide 114: Forward-looking statements
This news release 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, that are intended to be covered by the safe harbor created by such sections and other applicable la
Slide 115: Non-Reserve Mineralization Supplemental Information
Non-Reserve Mineralization Supplemental Information 115
Slide 116: Non-Reserve Mineralization Supplemental Information (continued)
Non-Reserve Mineralization Supplemental Information (continued) 116
Slide 117: Definitions
DEFINITIONS (1) The term "reserve" means that part of a mineral deposit that can be economically and legally extracted or produced at the time of the reserve determination. The term "economically," as used in this definition, means that profitable extraction or production has been established or ana
Slide 118: 2010 Annual Outlook
2010 Annual Outlook Description Q1 Update 2010 Original Equity gold production (Kozs) 5,300 - 5,500 5,300 - 5,500 Costs applicable to sales - Gold ($/oz) $450 - $480 $450 - $480 Equity copper production (Mlbs) 330 - 360 350 - 380 Costs applicable to sales - Copper ($/lb) $0.85 - $0.95 $0.85 - $0.95
Slide 119: Officer Biographies - Richard O'Brien
Richard O'Brien President and Chief Executive Officer Richard O'Brien was elected President and Chief Executive Officer in 2007, having previously served as President and Chief Financial Officer and Executive Vice President and Chief Financial Officer during 2006 and 2007 and as Senior Vice Presiden
Slide 120: Officer Biographies (continued) - Brian Hill
Officer Biographies (continued) Brian Hill Executive Vice President, Operations Brian Hill was elected Executive Vice President, Operations in October 2008, after having served as Vice President, Asia Pacific Operations since January 2008. Previously, he served as the Managing Director of LionOre Au
Slide 121: Officer Biographies (continued) - Bill MacGowan
Officer Biographies (continued) Bill MacGowan Executive Vice President, Human Resources & Communications Bill MacGowan was elected executive vice president, human resources in 2010. Prior to joining Newmont, Mr. MacGowan served as chief human resources officer and executive vice president, people an