Newmont Corporation · NYSE:NEM
Newmont — Q1 2024 Earnings Presentation
29 slides from Newmont's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings
First Quarter 2024 Earnings April 25, 2024 FIRST QUARTER 2024 EARNINGS 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: Reinvigorating Our Approach to Safety
Reinvigorating Our Approach to Safety REMEMBERING RENEWED COMMITMENT TO Ike Cobbina Morrison Fatality Risk Management February 27, 2024, Ahafo North ▪ Investigations focused on understanding events and building the lessons Rosana Ledesma learnt into our established safety management program April 9,
Slide 4: Q1 2024 Highlights
Q1 2024 Highlights THE NEW WORLD-CLASS DRIVING DELIVERING Sustainability Standard Portfolio Capital Allocation Synergies ▪ Applying fatality investigation ▪ Produced ~1.7M attributable ▪ Declared a common dividend of ▪ Delivered $105M in total synergies findings at all managed ounces of gold* and 48
Slide 5: Delivering $500M of Synergies by End of 2025
Delivering $500M of Synergies by End of 2025* PROGRESS TOWARD SYNERGY ▪ >$150M identified at Lihir with COMMITMENT ($M) FULL potential upside G&A Supply Chain Full Potential $500M POTENTIAL * ▪ Initial phases in progress at Cadia, Red Chris, and Brucejack $230M $335M ▪ Improved terms and pricing SUP
Slide 6: Operational Update
Newmont OPERATIONAL UPDATE FIRST QUARTER 2024 EARNINGS NEWMONT CORPORATION 6
Slide 7: Solid Q1 Performance from Managed Tier 1 Assets
Solid Q1 Performance from Managed Tier 1 Assets* TANAMI BODDINGTON PEÑASQUITO ▪ Delivered solid production as ▪ Ramped up stripping in North and ▪ Delivered strong silver and lead planned, despite heavy rainfall South pits as planned production in Q1 ▪ Plant maintenance in Q1 to drive ▪ Improved mat
Slide 8: Advancing Key Projects in Execution in Q1
Advancing Key Projects in Execution in Q1 TANAMI EXPANSION 2 1.5km deep production shaft, reducing operating costs by ~30% through efficiency improvements Progressing shaft lining in the lower section of the shaft and construction of underground infrastructure AHAFO NORTH CADIA BLOCK CAVES New mine
Slide 9: Financial Performance
Newmont FINANCIAL PERFORMANCE FIRST QUARTER 2024 EARNINGS NEWMONT CORPORATION 9
Slide 10: Q1 2024 Financial Performance
Q1 2024 Financial Performance $4.0B z Revenue Q1 2024 OPERATING CASH FLOWS ($M) $1,442 $1.7B z Adjusted EBITDA * $0.15 /sh. z Income GAAP Net $(291) One-Off $0.55 /sh. z Net Income * Adjusted $(193) $(84) $776 $(59) $(39) $776M z Cash from Operations $850M Capitalz Expenditures $(74)M z Free Cash Fl
Slide 11: On Track to Deliver 2024 Guidance
On Track to Deliver 2024 Guidance* 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 *** $1,250 $1,440
Slide 12: 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 $1.0B ANNUALIZED BASE DIVIDEND* SHARE-REPURCHASE PROGRAM** Subj
Slide 13: Closing Remarks
Newmont CLOSING REMARKS FIRST QUARTER 2024 EARNINGS NEWMONT CORPORATION 13
Slide 14: Delivering on Our Key Commitments
Delivering on Our Key Commitments THE NEW WORLD-CLASS DELIVERING DRIVING Sustainability Standard Portfolio Synergies Capital Allocation The Industry’s Leading Gold and Copper Business* *Referring to the gold industry, based on gold and copper reserves and resources. FIRST QUARTER 2024 EARNINGS NEWMO
Slide 15: Appendix
Newmont APPENDIX FIRST QUARTER 2024 EARNINGS NEWMONT CORPORATION 15
Slide 16: Basis For Disciplined 2024 Outlook
Basis For Disciplined 2024 Outlook PRICING ASSUMPTIONS AND SENSITIVITIES (as of February 22, 2024) ASSUMPTION CHANGE (-/+) REVENUE AND COST IMPACTS ($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 $100 Oil
Slide 17: 2024 Outlook by Site as of February 22, 2024
2024 Outlooka by Site as of February 22, 2024 Attributable Consolidated Attributable Development Consolidated Attributable Consolidated CAS All-In Sustaining Sustaining Capital Capital 2024 Outlook Production (Koz) Production (Koz) ($/oz) Costsb ($/oz) Expenditures ($M) Expenditures ($M) Managed Tie
Slide 18: 2024 Consolidated Expense and Capital Outlook
2024 Consolidated Expense and Capital Outlook GUIDANCE METRIC 2024E Sustaining Capital ($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 19: Adjusted net income (loss)
Adjusted net income (loss) Net income (loss) attributable to Newmont stockholders is reconciled to Adjusted net income (loss) as follows: Three Months Ended March 31, 2024 per share data (1) (1) Per share measures may not recalculate due to rounding. (2) Loss on assets held for sale, included in Los
Slide 20: 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 March 31, 2024 2023 (1) Loss on assets held for sale, included in Loss on assets held for sale, represents the Net income (loss) attributable t
Slide 21: 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 22: 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 23: Costs Applicable to Sales
Costs Applicable to Sales Costs applicable to sales per ounce/gold equivalent ounce are calculated by dividing the costs applicable to sales of gold and other metals by gold ounces or gold equivalent ounces sold, respectively. These measures are calculated for the periods presented on a consolidated
Slide 24: All-in Sustaining Costs
All-in Sustaining Costs All-in sustaining costs represent the sum of certain costs, recognized as GAAP financial measures, that management considers to be associated with production. All-in sustaining costs per ounce amounts are calculated by dividing all-in sustaining costs by gold ounces or gold e
Slide 25: 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 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 26: 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 27: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with Newmont’s Form 10-Q for the quarter ended March 31, 2024, expected to be filed on, or about, April 29, 2024. Investors are reminded that expectations regarding outlook and guidance, including
Slide 28: Endnotes
Endnotes Portfolio Optimization. The announced portfolio optimization includes expected asset divestitures and expected portfolio re-sequencing and thus are expectations and thus “forward-looking statements” subject to risks, uncertainties and other factors which may cause such divestitures to occur
Slide 29: Endnotes
Endnotes Past Performance. Past performance metrics and figures included in this presentation are given for illustrative purposes only and should not be relied upon as (and are not) an indication of Newmont’s views on its or Newcrest’s future financial performance or condition or prospects (includin