Slide 1: Second Quarter Earnings
Second Quarter Earnings Friday, July 27, 2012
Slide 2: Cautionary Statement
Cautionary Statement Cautionary Statement Regarding Forward Looking Statements, Including 2012 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 amen
Slide 3: Enhancing Value Through Profitable Growth, Disciplined Returns and Exploration Potential
Enhancing Value Through Profitable Growth, Disciplined Returns and Exploration Potential Attributable Basis Profitable Profitable gold production potential of 6-7Moz by 20171 Growth Disciplined Disciplined risk-adjusted returns in excess of the Company’s average cost Returns of capital Explorati
Slide 4: Current Growth Potential Between 6 and 7 Million Ounces by 2017
Our Current Growth Potential, Adjusted for Delays of our Peruvian Projects, is Between 6 and 7 Million Ounces by 2017 Profitable Growth with Disciplined Returns 2017 8.0 Attributable Production Potential 7.0 6-7 Moz4 2012 Attributable 6.0 Production Rescheduled Batu, ~0.4 Akyem Outlook N America Pro
Slide 5: Further development of Conga is contingent upon capital cost reductions
Further development of Conga is contingent upon capital cost reductions required to generate acceptable project returns AND local community and government support Community unrest and protests delaying further progress on Conga Work Completion Status: − Engineering 95% complete − Procurement 66%
Slide 6: Q2 and YTD Financial Highlights
Q2 and YTD Financial Highlights YTD YTD Q2 2011 Q2 2012 2011 2012 Attributable Gold Sales (Moz) 1.19 1.14 2.49 2.40 Attributable Copper Sales (Mlbs) 46 30 103 66 Revenue ($M) $2,384 $2,229 $4,849 $4,912 Net Income ($M) $523 $279 $1,037 $840 Net Income per Share $1.06 $0.56 $2.10 $1.69 Adjusted Net I
Slide 7: Q2 and YTD Operating Highlights
Q2 and YTD Operating Highlights YTD YTD Q2 2011 Q2 2012 2011 2012 Attributable Gold Production (Moz) 1.22 1.18 2.56 2.49 Attributable Copper Production (Mlbs) 42 38 96 73 Average Realized Gold Price7($/oz) $1,501 $1,598 $1,440 $1,643 Average Realized Copper Price ($/lb) $3.78 $2.85 $3.91 $3.49 Gold
Slide 8: Gold Price-Linked Dividend Eliminating Noise and Uncertainty/Basis Risk
Gold Price-Linked Dividend Eliminating “Noise” and Uncertainty/Basis Risk Source: NEM 10Q Filed on 7/26/2012 Source: NEM 10Q Filed on 7/26/2012 Newmont Mining Corporation | Second Quarter 2012 Earnings | www.newmont.com 8 July 27, 2012 Newmont Mining Corporation – Strictly Confidential
Slide 9: Annualized Dividend per Share: Gold Price-Linked Dividend
Gold Price-Linked Dividend10 Now Tied to Trailing Average Quarterly London PM Gold Fix $5.00 Dividend increases / Dividend Dividend increases / decreases decreases by $0.20/share increases / by $0.40/share for every $100/oz $4.70 $4.50 for every $100/oz change decreases by change in the Avg. London
Slide 10: Q2 2012 Operational Performance
Q2 2012 Operational Performance 1.18Moz at CAS of $681/oz Q2 2011 Attributable Gold Production Q2 2012 Attributable Gold Production Africa Africa 146 Koz 132 Koz N America 410 Koz N America 1.22Moz 437 Koz 1.18Moz APAC APAC 474 Koz 400 Koz S America 193 Koz S America 213 Koz Consolidated N America S
Slide 11: North America Operating Highlights
North America Operating Highlights Attributable Production (Koz) Twin Creeks Q2 2011 410 Q2 2012 437 Consolidated CAS ($/oz) Q2 2011 $620 Q2 2012 $697 Q2 Attributable Gold Production (Koz) Nevada La Herradura 500 Gold production increased due to higher 400 throughput at Mill 6 in Nevada and higher
Slide 12: South America Operating Highlights
South America Operating Highlights Attributable Production (Koz) Yanacocha, Peru Q2 2011 193 Q2 2012 213 Consolidated CAS ($/oz) Q2 2011 $545 Q2 2012 $466 Q2 Attributable Gold Production (Koz) Yanachocha La Zanja 250 Gold production increased due to higher mill 200 grade and recovery 150 Gold CA
Slide 13: Asia Pacific Operating Highlights
Asia Pacific Operating Highlights Attributable Gold Consolidated Production (Koz) Gold CAS ($/oz) Gold production decreased due to lower Q2 2011 474 $620 mining rates at Tanami and Waihi Q2 2012 400 $911 Gold CAS increased due to higher Attributable Copper Consolidated milling and waste strippin
Slide 14: Africa Operating Highlights
Africa Operating Highlights Attributable Production (Koz) Ahafo Q2 2011 146 Q2 2012 132 Consolidated CAS ($/oz) Q2 2011 $446 Q2 2012 $583 Q2 Attributable Gold Production (Koz) Ahafo 150 Gold production decreased due to lower 140 throughput and grade, partly offset by higher recovery 130 120 Gold
Slide 15: Newmont: Summary/Conclusion
Newmont: Summary/Conclusion Potential increase in attributable gold production to 6-7 Moz by 2017 Focused on returns on invested capital Exploration upside as large as current reserve base Strong balance sheet with significant financial flexibility Industry-leading dividend Newmont Mining
Slide 16: Questions?
NEWMONT. Questions? COUNCIL MEMBER
Slide 17: Appendix
NEWMONT. Appendix COUNCIL MEMBER
Slide 18: 2012 Outlook
2012 Outlook11 2012 Production, CAS and Capital Outlook Attributable Production Consolidated CAS Consolidated Capital Attributable Capital Region (Kozs, Mlbs) ($/oz, $/lb) Expenditures ($M) Expenditures ($M) Nevada 1,730 - 1,775 $575 - $625 $750 - $800 $750 - $800 2012 Outlook and Assumptions La Her
Slide 19: Reconciliation – Adjusted Net Income to GAAP Net Income
Reconciliation – Adjusted Net Income to GAAP Net Income Non-GAAP Financial Measures Non-GAAP financial measures are intended to provide additional information only and do not have any standard meaning prescribed by Generally Accepted Accounting Principles (“GAAP”). These measures should not be consi
Slide 20: Attributable and Net Attributable CAS
Attributable and Net Attributable CAS Costs Applicable to Sales per Ounce/Pound Costs applicable to sales per ounce/pound are non-GAAP financial measures. These measures are calculated by dividing the costs applicable to sales of gold and copper by gold ounces or copper pounds sold, respectively. Th
Slide 21: Gold Price-Linked Dividend Indicative Payout Table
Gold Price-Linked Dividend10 Indicative Payout Table Q2’2012 Avg. Trailing London PM Fix $1,609/oz Gold Price $1,100- $1,200- $1,300- $1,400- $1,500- $1,600- $1,700- $1,800- $1,900- $2,000- ($/oz) $1,199 $1,299 $1,399 $1,499 $1,599 $1,699 $1,799 $1,899 $1,999 $2,199 Dividend per Share ($/qtr) $0.10
Slide 22: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the following notes footnotes, the Cautionary Statement on slide 2 and the factors described under the “Risk Factors” section of the Company’s most recent Form 10-K, filed with the SEC on Feb