Newmont Corporation · NYSE:NEM
Newmont — UBS Australasia Conference 2024
45 slides from Newmont's conference presentation, Nov 11, 2024
Slide 1: ASX announcement: UBS Australasia Conference Presentation
6900 E. Layton Ave. P 303.863.7414 Suite 700 F 303.837.5837 Denver, CO 80237 newmont.com For announcement to the ASX 11 November 2024 Newmont Corporation (NYSE: NEM, ASX: NEM, TSX: NGT, PNGX: NEM) published its UBS Australasia Conference Presentation on Sunday, 10 November 2024 U.S. Eastern Daylight
Slide 2: About Newmont
6900 E. Layton Ave. P 303.863.7414 Suite 700 F 303.837.5837 Denver, CO 80237 newmont.com About Newmont Newmont is the world’s leading gold company and a producer of copper, zinc, lead, and silver. The Company’s world-class portfolio of assets, prospects, and talent is anchored in favorable mining ju
Slide 3: Fourth Quarter 2024 Investor Presentation
Fourth Quarter 2024 For personal use only Investor Presentation November 2024 Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 1
Slide 4: Cautionary Statement Regarding Forward Looking Statements
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 5: 2024 & 2025 Performance & Outlook
Newmont 2024 & 2025 PERFORMANCE & OUTLOOK For personal use only Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 3
Slide 6: 2024: A Transformational Year
2024: A Transformational Year Focused on Integration, Rationalization, & Transition For personal use only Completing Stabilizing Progressing Improving Returning Cash to INTEGRATION PRODUCTION DIVESTITURES MARGINS SHAREHOLDERS Strengthening safety culture Expect to deliver ~5.6Moz Announced $1.5B fro
Slide 7: Announced >$2B from Asset Sales in 2024
Announced >$2B from Asset Sales in 2024 Up to $1.5B from Non-Core Divestitures, $527M from Sale of Other Investments For personal use only FEBRUARY 2024 JULY 2024 OCTOBER 2024 Announced Non-Core Divestiture Program with Monetization of Batu Hijau contingent payments Agreement to divest Akyem operati
Slide 8: On Track to Deliver a Solid Finish to the Year
On Track to Deliver a Solid Finish to the Year Q4 2024 Guidance* For personal use only 1.8 Moz Attributable Gold Production** $320 M Development Capital $1,050 /oz Gold Costs Applicable to Sales $550 M Sustaining Capital $1,475 /oz Gold All-In Sustaining Costs*** $110 M General & Administrative *Rep
Slide 9: 2025: Core Portfolio to Deliver Steady Results
2025: Core Portfolio to Deliver Steady Results* Focused on Safety, Costs, & Productivity For personal use only ▪ Expect attributable gold production in 2025 to remain consistent with 2024 ▪ Anticipate unit costs in 2025 to align with the trends observed in 2024 ▪ Expect annual sustaining capital spe
Slide 10: Performance Catalysts Beyond 2024
Performance Catalysts Beyond 2024 LIHIR BRUCEJACK CADIA NON-MANAGED OPERATIONS use only For personalHEADWINDS Processing higher proportion of lower-grade Focused on development and drilling activities to Elevated sustaining capital for a period to align life- Monitoring run-rate from Nevada Gold Min
Slide 11: Core Portfolio
Newmont CORE PORTFOLIO For personal use only Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 9
Slide 12: Newmont's Go-Forward Core Portfolio
Newmont’s Go-Forward Core Portfolio For personal use only ASIA PACIFIC Lihir AFRICA Boddington Ahafo Cadia Ahafo North Cadia Panel Cave 2-3 Tanami Tanami Expansion 2 NORTH AMERICA Brucejack Red Chris Nevada Gold Mines JV* LATIN AMERICA Peñasquito Merian Cerro Negro Yanacocha Pueblo Viejo JV* Managed
Slide 13: Industry-Leading Portfolio
Industry-Leading Portfolio LAST 12 MONTHS (LTM) GEO PRODUCTION FROM TIER 1 ASSETS (koz) Assets Managed by Precious Metals Producers For personal use only Managed Operation 1,500 Non-Managed Joint Venture 1,200 900 600 Pueblo Viejo* Boddington Peñasquito Turquoise 300 Cortez* Tanami Carlin* Ridge* Ah
Slide 14: Underpinned By Industry-Leading Reserves & Resources
Underpinned By Industry-Leading Reserves & Resources Africa 6% For personal use only Asia Pacific North North America 40% America 20% 15% Asia Pacific 47% Gold Copper 128 Moz RESERVES * 14 Mt RESERVES * + + 155 Moz RESOURCES ** 26 Mt RESOURCES ** Latin America 38% Latin America 34% *For Tier 1 portf
Slide 15: Shareholder-Focused Capital Allocation Strategy
Shareholder-Focused Capital Allocation Strategy For personal use only 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 $3.0B ANNUALIZED BASE DIVIDEND* SHARE-REP
Slide 16: Appendix
Newmont APPENDIX For personal use only Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 14
Slide 17: Third Quarter Results
For personal use only Third Quarter Results Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 15
Slide 18: Q3 2024 Summary
Q3 2024 Summary For personal use only THE NEW WORLD-CLASS DRIVING DELIVERING Sustainability Standard Portfolio Capital Allocation Synergies ▪ Newmont to take on leadership ▪ Produced ~1.7M attributable ▪ Returned $786M to shareholders ▪ Achieved $500M synergy run- position as ICMM chair ounces of go
Slide 19: Q3 2024 Financial Performance
Q3 2024 Financial Performance Adjusted Net For personal use only Revenue Adjusted EBITDA * GAAP Net Income Income * $4.6B $2.0B $0.80/sh $0.81/sh Cash from Capital Cash & Cash Operations Expenditures Free Cash Flow * Equivalents ** $1.6B $877M $760M $3.1B Well-Positioned to Deliver Stronger Financia
Slide 20: Direct Operating Costs by Category
Direct Operating Costs by Category* Newmont’s Core Portfolio 2% 1% Other 8% Other Chemicals, For personal use only 25% 4% Reagents, & 9% Newmont Liners & Explosives Diesel Employees Wear Parts 50% 30% 5% Electric Power 15% Materials & Fuel & Energy Labor Costs Consumables Costs 25% 8% 8% Contracted
Slide 21: Advancing Key Projects in Execution in Q3
Advancing Key Projects in Execution in Q3 For personal use only TANAMI EXPANSION 2 1.5km deep production shaft, reducing operating costs by ~30% through efficiency improvements ▪ Progressing concrete lining in lower section of the shaft ▪ Winder building largely complete Major SAG Mill Component Lif
Slide 22: Delivering on Our Key Commitments
Delivering on Our Key Commitments Transaction Commitments Progressed in Q3 2024 For personal use only The New ▪ Implementing lessons learned from recent fatalities SUSTAINABILITY STANDARD ▪ Firmly on track to meet production guidance of 6.75Moz of gold World-Class ▪ Generated $760M of Free Cash Flow
Slide 23: Continuous Improvement
For personal use only Continuous Improvement Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 21
Slide 24: Operating Model Drives Continuous Improvement
Operating Model Drives Continuous Improvement DIAGNOSE DESIGN DELIVER REFRESH For personal use only Proven integrated operating model with deep bench of experienced leaders and technical experts Robust governance structure drives stable, predictable, and sustainable performance Full Potential progra
Slide 25: Established Operations Support Networks (OSNS)
Established Operations Support Networks (OSNS) Monitor Coach Intervene Sustain For personal use only Supporting operations through centralized network of world- class subject matter experts Providing expert data and analytics through a consistent ASSET platform to produce improved performance at ope
Slide 26: Sustainability
For personal use only Sustainability Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 24
Slide 27: The Gold Sector's Recognized Sustainability Leader
The Gold Sector’s Recognized Sustainability Leader S&P GLOBAL CSA SUSTAINALYTICS TRANSPARENCY CLIMATE For personal use only 100% 21 #1 A- Percentile ranking global ESG Risk Rating measures exposure and Most transparent company in S&P 500; CDP Climate Scores reflective metals and mining sector manage
Slide 28: Significant Milestones in Our Sustainability Journey
Significant Milestones in Our Sustainability Journey 2001 2004 2007 2013 2016 2020 For personal use only Founding member Established Safety Appointed Adopted Conflict-Free Sustainability and Implementing Global of ICMM & Sustainability Company’s first Gold Standard safety targets Industry Standard o
Slide 29: Committed to Leading ESG Practices
Committed to Leading ESG Practices For personal use only DEMONSTRATING NEWMONT’S DEDICATION TO ACCOUNTABILITY AND TRANSPARENCY Launched 20th Annual Sustainability Report in April 2024, a transparent review of ESG performance and the issues and metrics that matter most to stakeholders Published Clima
Slide 30: Governance Underpins Sustainability Strategy
Governance Underpins Sustainability Strategy SUSTAINABILITY GOVERNANCE AT NEWMONT 2024 ANNUAL INCENTIVE PLAN For personal use only Board of Directors ▪ Oversight, advice and counsel on key sustainability matters 20% Health & Safety ▪ Dedicated Safety & Sustainability Committee ▪ Fatality Risk Manage
Slide 31: Broad Management Experience
Broad Management Experience EXECUTIVE LEADERSHIP TEAM BOARD OF DIRECTORS For personal use only Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 29
Slide 32: Endnotes and Reconciliations
For personal use only Endnotes and Reconciliations Q4 2024 INVESTOR PRESENTATION – NOVEMBER 2024 NEWMONT CORPORATION 30
Slide 33: 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 For personal use only least 15% ▪ Feas
Slide 34: Basis For 2024 Outlook
Basis For 2024 Outlook PRICING ASSUMPTIONS AND SENSITIVITIES (as of February 22, 2024) For personal use only 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 $4
Slide 35: 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) Loss on assets held for sale, included in Loss on assets held for sale, represents the loss record
Slide 36: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Net income (loss) attributable to Newmont stockholders is reconciled to EBITDA and Adjusted EBITDA as follows: For personal use only Three Months Ended Nine Months Ended (1) Loss on assets held for sale, included in Loss on assets held for sale, represents the loss Septemb
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 September 30, 2024, expected to be filed on, or about, October 24, 2024. Investors are reminded that expectations regarding outlook and guidance, inc
Slide 44: Endnotes
Endnotes Dividend. Our future dividends, beyond the dividend declared for the second quarter 2024, have not yet been approved or declared by the Board of Directors. An annualized dividend payout level has not been declared by the Board and is non-binding. The Company’s dividend framework and expecte
Slide 45: Endnotes
Endnotes Projections. Projections used in this presentation are considered “forward looking statements”. See cautionary statement above regarding forward-looking statements. Estimates such as expected accretion, net asset value (NAV) per share, cash flow enhancement, synergies and future production