Newmont Corporation · NYSE:NEM
Newmont — Investor Presentation (December 2022)
55 slides from Newmont's investor presentation, December 2022
Slide 1: Investor Presentation
Investor Presentation CREATING VALUE & IMPROVING LIVES DECEMBER 2022 THROUGH SUSTAINABLE, RESPONSIBLE MINING DECEMBER 2022 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: Newmont is the World's Leading Gold Company
Newmont is the World’s Leading Gold Company COMMITMENT TO INDUSTRY PROVEN DISCIPLINED CAPITAL LEADING ESG PRACTICES LEADING PORTFOLIO OPERATING MODEL ALLOCATION STRATEGY Creating value and improving lives World-class assets in top-tier Experienced leaders with strong Balanced approach to deliver for
Slide 4: World-Class Assets in Top-Tier Jurisdictions
World-Class Assets in Top-Tier Jurisdictions #1 GOLD WORLD-CLASS TOP-TIER PRODUCER ASSETS JURISDICTIONS MUSSELWHITE ~8M 9 ~90% Stable annual GEO production World-class assets in top-tier Attributable gold production ÉLÉONORE through 2031+ jurisdictions* from top-tier jurisdictions ROBUST GOLD UPSIDE
Slide 5: Project Pipeline to Sustain Production into 2040s
Project Pipeline to Sustain Production into 2040s 7+ YEARS 4 TO 7 YEARS 0 TO 4 YEARS EXECUTION FEASIBILITY DEFINITIVE YANACOCHA SULFIDES TANAMI EXPANSION 2 Peru – Gold (~45%), Copper (~45%), Australia – Gold Silver (~10%) PUEBLO VIEJO AHAFO NORTH EXPANSION JV Ghana – Gold Dominican Republic – Gold G
Slide 6: Steady Production Through Industry-Best Portfolio
Steady Production Through Industry-Best Portfolio INDICATIVE 10-YEAR PRODUCTION PROFILE* (Attributable Moz per Year) 10 9 Total GEO Production** 8 Gold Production** 7 6 SOUTH AMERICA*** 5 AFRICA 4 3 AUSTRALIA 2 NORTH AMERICA*** 1 - 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 ~8 Million Gold Eq
Slide 7: Disciplined Capital Allocation Priorities
Disciplined Capital Allocation Priorities MAINTAINING FINANCIAL FLEXIBILITY Sustain an Investment-Grade Balance Sheet with Strength & Flexibility INVESTING IN SUSTAINABLE PRODUCTION BALANCED Reinvest in the Business to Improve Cash Margins Over the Long Term CAPITAL ALLOCATION STRATEGY RETURNING CAS
Slide 8: The Industry's Strongest Balance Sheet
The Industry’s Strongest Balance Sheet CASH AND SHORT-TERM NET DEBT TO TOTAL LIQUIDITY* BANK DEPOSITS* ADJUSTED EBITDA** $6.7B Cash Balance and Undrawn Revolving $3.7B Maintaining Strength During Time of 0.5x Substantially Below Target of Credit Facility Meaningful Reinvestment Less than 1.0x WEIGHT
Slide 9: Steady Investment in Sustainable Production
Steady Investment in Sustainable Production Maintaining portfolio of world -class assets in proven mining jurisdictions; Average sustaining capital of ~$1B to 1.2B per year * In a period of meaningful reinvestment; Average attributable development capital of ~$800M to $1B per year * Robust foundatio
Slide 10: Industry-Leading Dividend Framework
Industry-Leading Dividend Framework ▪ Remain committed to structured, industry-leading dividend framework ANNUALIZED DIVIDEND PAYOUT * introduced in October 2020 – Dividend payouts calibrated on gold price, evaluated in increments of $300/oz – Base dividend set at reserve price assumption, variable
Slide 11: Dividend Payments Relative to Free Cash Flow
Dividend Payments Relative to Free Cash Flow ($M) Free Cash Flow Generated Dividend Payout $4,000 $3,500 $3,000 $2,500 $2,000 $3,588 $1,500 $2,613 $1,000 $1,757 $1,413 $1,310 $500 $889 $834 $703 $- FY 2019 FY 2020 FY 2021 YTD 2022* *As of September 30, 2022. Cumulative Dividends are ~58% of Free Cas
Slide 12: A Challenging Market Environment for the Industry
A Challenging Market Environment for the Industry AVERAGE ALL-IN SUSTAINING COSTS (AISC) PER OUNCE ($/OZ) Industry Average AISC/oz* $2,000 Quarterly Average Gold Price $1,800 2023 Gold Price $1,600 Consensus** ~$1,700/oz $1,400 $1,216 $1,175 $1,163 $1,176 $1,183 $1,200 $1,064 $1,022 $1,007 $1,033 $9
Slide 13: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement LEVERAGING PROVEN WORLD-CLASS PROGRAM AND TECHNICAL EXPERTISE Diagnose Design Deliver Refresh EXTERNAL SPEND & MINING OTHER – 15% IMPROVEMENT – 55% ✓ Proven integrated operating model with deep bench Optimizing Fleet and Improving Supply Chain, Asset of
Slide 14: Proven Operating Model with a Strong Track Record
Proven Operating Model with a Strong Track Record APPLYING LESSONS LEARNED DURING THE PANDEMIC TO CHANGE THE WAY WE WORK Sharing Knowledge, Expertise and Talent Across the Global Business Global Supply Chain team minimizing cost pressures and secure competitive supplier contracts Implementing new te
Slide 15: The Gold Sector's Recognized Sustainability Leader
The Gold Sector’s Recognized Sustainability Leader SAM S&P (DJSI) SUSTAINALYTICS TRANSPARENCY CLIMATE 100% Percentile ranking 20 ESG Risk Rating measures exposure and #1 Most transparent company in B CDP Climate Scores reflective of global metals and mining sector management of material ESG risks* S
Slide 16: Commitment to Leading ESG Practices
Commitment to Leading ESG Practices DEMONSTRATING NEWMONT’S DEDICATION TO ACCOUNTABILITY AND TRANSPARENCY Launched 18th Annual Sustainability Report in April 2022, a transparent review of ESG performance and the issues and metrics that matter most to stakeholders Published 2nd Annual Climate Report
Slide 17: Leading Change. Focused on Value.
– 100 YEARS – #1 gold producer with ~8M Proven operating model and GEOs* per year with significant deep bench of experienced exposure to copper and leaders with strong track record other metals Strong free cash flow Industry’s leading portfolio of generation and margins with world-class assets in to
Slide 18: Appendix
Appendix CREATING VALUE & IMPROVING LIVES THROUGH SUSTAINABLE, RESPONSIBLE MINING DECEMBER 2022 INVESTOR PRESENTATION NEWMONT CORPORATION 18
Slide 19: Third Quarter 2022 Highlights
Third Quarter 2022 Highlights Remain on track to achieve updated Liquidity of $6.7B and net debt full-year guidance to adjusted EBITDA ratio of 0.5x** Produced 1.5M attributable ounces of Declared dividend of $0.55 per share for gold* and 299k GEOs from co-products Q3; calibrated at an $1,800/oz gol
Slide 20: Third Quarter Financial Performance
Third Quarter Financial Performance ADJUSTED REVENUE NET INCOME* $2.6B $0.27/share ADJUSTED CASH FROM EBITDA* CONTINUING OPS $850M $466M FREE CASH DIVIDEND FLOW* DECLARED $(63)M $0.55/share *See endnotes re non-GAAP metrics. **Reinvestment includes capital expenditures, exploration expense, and Adva
Slide 21: Operating Costs by Category
Operating Costs by Category* 5% 2% Liners, Wear Natural Gas, & 30% 8% 7% Parts, & Other Other Newmont Consumables Diesel Employees 50% 3% Explosives 30% 15% Materials & Labor Costs Fuel & Energy Consumables 20% Costs 6% 8% 6% Contracted Chemical & Maintenance Electric Power Services Reagents Parts *
Slide 22: Well-Positioned for a Strong Finish to 2022
Well-Positioned for a Strong Finish to 2022 NEWMONT 2022 OUTLOOK (+/-5% - AS OF JULY 25, 2022) GOLD PRODUCTION* GOLD CAS** GOLD AISC** 6.0Moz $900/oz $1,150/oz Higher production expected in Q4 at Lower unit costs in Q4 anticipated due to Lower costs expected in Q4 from Nevada Gold Mines, Boddington,
Slide 23: Focused on Productivity and Cost Improvements
Focused on Productivity and Cost Improvements PEÑASQUITO YANACOCHA BODDINGTON AHAFO SOUTH ~90koz ~50koz ~20koz ~$15M Increase in total gold equivalent Increase in total gold production, Increase in total gold production, Average annual cost savings, ounce* Production in 2023 beginning in 2023 beginn
Slide 24: Established Operations Support Networks (OSNs)
Established Operations ESTABLISHING OPERATIONS Support SUPPORT Networks (OSNs) NETWORKS Monitor Coach Intervene Sustain Supporting operations through centralized network of world-class subject matter experts Providing expert data and analytics through ASSET a consistent platform to produce improved
Slide 25: OSNs: Driving Improvements Across Operations
OSNs: Driving Improvements Across Operations Monitor Coach Intervene Sustain >3,400 >1.2M >12k >9,000 ~92% >$64M >$127M Assets Data Streams Opportunities Recommendations Site Acceptance Value created in Value created since Monitored Monitored Identified in 2022* Actioned by Site* Rate 2022* 2020 OSN
Slide 26: Processing OSN: Boddington Spotlight
Processing OSN: Boddington Spotlight MONITOR ▪ OSN identified ball mill tonnage rate is trending below other ball mills ▪ OSN Analyst reviewed additional ball mill performance indicators and discovered issues with the feed pump’s electrical targets COACH & INTERVENE ▪ The OSN and Newmont’s Technical
Slide 27: Mining OSN: Cripple Creek & Victor Spotlight
Mining OSN: Cripple Creek & Victor Spotlight MONITOR ▪ OSN identified site operator with idling time 300% higher than crew average ▪ A truck is idle when the engine is on, the truck is not in gear, and the truck is not being loaded COACH & INTERVENE ▪ OSN sent a notification to site and provided gui
Slide 28: Asset Management OSN: Tanami Spotlight
Asset Management OSN: Tanami Spotlight MONITOR ▪ OSN identified a sudden emergence and rapid deterioration of a ball mill gearbox component through vibration analysis COACH & INTERVENE ▪ OSN recommended an initial inspection of gearbox to site; inspection confirmed diagnosis and severity ▪ OSN and s
Slide 29: Industry-Leading Portfolio Delivers Long-Term Value
Industry-Leading Portfolio Delivers Long-Term Value AUSTRALIA NORTH AMERICA SOUTH AMERICA AFRICA NEVADA GOLD MINES Growing Profitable Extending Mine Life Preparing for Future Growth Maintaining Strong (38.5%) Production Performance ▪ Boddington adds ▪ Peñasquito continues ▪ Cerro Negro improves ▪ Ak
Slide 30: Tanami Growing Position as a World-Class Asset
Tanami Growing Position as a World-Class Asset OPERATIONAL EFFICIENCY IMPROVES MARGINS Delivers a 1.5 km deep production shaft, reducing operating costs by ~10% through efficiency improvements Enables future processing of ~3.3Mtonnes of ore per year with annual production increase of 150koz – 200koz
Slide 31: Ahafo North – Best Unmined Deposit in West Africa
Ahafo North – Best Unmined Deposit in West Africa EXPANDING CURRENT FOOTPRINT IN GHANA Open pit mine, stand-alone mill for processing 3.5Mozs of Reserve and 1.0Mozs of Resource 13-year mine life with ~300Koz of average annual production over the first five years Engaging with local communities and r
Slide 32: Yanacocha Sulfides: Assessing Optionality
Yanacocha Sulfides: Assessing Optionality POSSBILITIES WITHIN CURRENT FOOTPRINT REVIEWING THE SULFIDES PROJECT IN TOTAL ▪ First phase includes Yanacocha Verde and Chaquicocha deposits ▪ Appointed Dean Gehring to lead Yanacocha and the Sulfides to profitably extend Yanacocha operations beyond 2040 Pr
Slide 33: 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 34: Pathway to Achieving 2030 Reduction Goals
Pathway to Achieving 2030 Reduction Goals TARGETED STRATEGY TO REDUCE SCOPE 1 & 2 EMISSIONS SCIENCE-BASED CLIMATE (KtCO 2 e) TARGETS APPROVED BY SBTi 3,570 32% Driven by increase in renewable Reduction by 2030 energy through development, grid or partnership (900) (200) 2,040 (160) (130) (90) (50) St
Slide 35: 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 36: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS Tom Palmer Rob Atkinson Brian Tabolt EVP and COO Greg Boyce, Chair Bruce R. Brook Maura Clark President and CEO EVP and CFO (Interim) Peter Toth Nancy Lipson Aaron Puna René Médori Julio M. Quintana Susan Story Jane Nelson EVP,
Slide 37: Robust Gold Reserves in Top-Tier Jurisdictions
Robust Gold Reserves in Top-Tier Jurisdictions Africa 9% Other North America 11% 35% Australia Silver 13% 12% GOLD RESERVES* GEO RESERVES* 96 Moz 68 Moz + + GOLD RESOURCES** GEO RESOURCES** 114 Moz 113 Moz Copper 77% South America 43% ✓ 91% Reserves and Resources located in the Americas & Australia
Slide 38: Investing in Exploration to Extend Mine Life
Investing in Exploration to Extend Mine Life Exploration Investment** Coffee Galore Creek 20% Saddle North Musselwhite Éléonore $300M Japan Porcupine in 2022 Nevada Gold Mines* CC&V 80% 80% Peñasquito Mexico Pueblo Viejo* Merian Espérance Akyem Ahafo Yanacocha Tanami Andes Centralian LEGEND Lachlan
Slide 39: 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 40: Developing Mining Districts Through Exploration
Developing Mining Districts Through Exploration UNMATCHED LAND POSITION OF ~59,000 KM 2* IN TOP PROSPECTIVE EXPLORATION DOMAINS Gold Terra JV SUPERIOR PROVINCE TINTINA PROVINCE TANAMI Porcupine Coffee Tanami Borden Triumph Gold Prodigy Gold JV Éléonore Independence Gold Musselwhite Éléonore South JV
Slide 41: 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 42: 2022 Outlook
2022 Outlooka Newmont 2022 Outlook (+/- 5%)a 2022E Consolidated Gold Production (Moz) 5.9 a 2022 outlook projections are considered forward-looking statements and represent management’s good faith estimates or expectations of future production results as of July 25, 2022. Outlook is based upon certa
Slide 43: Adjusted net income (loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: (1) Per share measures may not recalculate due to rounding. (2) Pension settlement, included in Other income (loss), net, represents pension settlement charges in
Slide 44: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: Three Months Ended Nine Months Ended (1) Pension settlement, included in Other income (loss), net, represents pension settlement September 30, September 30, charg
Slide 45: Free cash flow
Free cash flow The following table sets forth a reconciliation of Free Cash Flow to Net cash provided by (used in) operating activities, which the Company believes to be the GAAP financial measure most directly comparable to Free Cash Flow, as well as information regarding Net cash provided by (used
Slide 46: 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 47: All-in Sustaining Costs
All-in Sustaining Costs Advanced Sustaining Projects, Treatment Capital All-In Costs Research and Other and and Lease All-In Ounces Sustaining Three Months Ended Applicable to Reclamation Development and General and Expense, Refining Related Sustaining (000) Costs Per September 30, 2022 Sales (1)(2)
Slide 48: All-in Sustaining Costs
All-in Sustaining Costs Sustaining Advanced Treatment Capital and All-In Costs Projects, Research and Lease All-In Ounces Sustaining Nine Months Ended Applicable to Reclamation and Development General and Other Expense, Refining Related Sustaining (000) Costs Per oz. September 30, 2022 Sales (1)(2)(
Slide 49: Gold All-In Sustaining Costs - 2022 Outlook
Gold All-In Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Gold AISC outlook to the 2022 Gold CAS outlook is 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 Sec
Slide 50: Co-Product All-In Sustaining Costs - 2022 Outlook
Co-Product All-In Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Co-product AISC outlook to the 2022 Co-Product 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 Sect
Slide 51: Total GEO All-In Sustaining Costs - 2022 Outlook
Total GEO All-In Sustaining Costs - 2022 Outlook A reconciliation of the 2022 Total GEO AISC outlook to the 2022 Total GEO 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 Section
Slide 52: 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 53: 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, 2022 filed with the SEC on November 1, 2022, and with the Cautionary Statement on slide 2 and the following notes below. Outlook
Slide 54: Endnotes
Endnotes Reserves and Resources: Proven and Probable reserves are based on extensive drilling, sampling, mine modeling and metallurgical testing from which we determine economic feasibility. The price sensitivity of reserves depends upon several factors including grade, metallurgical recovery, opera
Slide 55: Endnotes
Endnotes Adjusted Net Income. Adjusted Net Income is a non-GAAP metric. Adjusted Net Income per share refers to Adjusted Net Income per diluted share. See appendix or more information and reconciliation to the nearest GAAP metric. Free Cash Flow. Attributable FCF is a non-GAAP metric and is generate