Slide 1: Tom Palmer, President & CEO
Tom Palmer, President & CEO FEBRUARY 2020 BMO METALS & MINING CONFERENCE 02.24.2020 NEWMONT CORPORATION 1
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 are intended to be covered by the safe harbor created by such sections a
Slide 3: The World's Leading Gold Company
The World’s Leading Gold Company INDUSTRY’S BEST PORTFOLIO #1 GOLD PRODUCER LEADING SUSTAINABILITY PERFORMANCE 8 world-class assets +6Mozs/year #1 gold mining company in DJSI 2 emerging world-class assets 1.2-1.4M GEO/year #1 gold company in the Corporate +90% in Top-Tier Jurisdictions
Slide 4: Creating a Fatality, Injury & Illness Free Environment
Creating a Fatality, Injury & Illness Free Environment REMOVING PERSONAL INJURY FREQUENCY RATES FROM OUR INCENTIVE PROGRAMS 15 2.50 From 2012 to 2018: 12 2.00 ICMM member companies have averaged 65 9 1.50 fatalities per annum with no change in the trend 6 7 1.00 5 Over that same time 4 4 period
Slide 5: Intensive Focus on Responsible Business Practices
Intensive Focus on Responsible Business Practices TARGETS RECOGNITION Water Climate Transparency Climate 5% 16.5% #3 B reduction in GHG CDP Climate assessment Reduction in freshwater Most transparent score reflective of * emissions intensity by consumption by YE 2019 ** company in the S&P 500 coordi
Slide 6: What We Promised and What We Delivered
What We Promised and What We Delivered OPERATIONAL COMMITMENTS FINANCIAL COMMITMENTS CAPITAL ALLOCATION COMMITMENTS Sustainable dividend >6Mozs of production through 2029 Paid off Refinanced at lowest $1.00 per share $1.25B coupon in mining history Announced industry-leading annual dividend pl
Slide 7: Superior Free Cash Flow Generation
Superior Free Cash Flow Generation FREE CASH FLOW PER YEAR ACCELERATES WITH GOLD PRICE (INCREMENTAL FROM $1,200 BASE) Capital Allocation Priorities +$1.5B non-gold revenue from GEO’s >$13B $600-$700M/yr** for project development >$11B +$1,600M >$9B +$1,200M ~$400M/yr for exploration and adv pr
Slide 8: Consistency and Longevity of Production Profile
Consistency and Longevity of Production Profile INDICATIVE GOLD PRODUCTION PROFILE * (ATTRIBUTABLE MOZ) Total GEOs 8 #1 in gold industry 7 Leading project pipeline 6 5 Leading exploration program 4 ~$1.5B/yr revenue from GEOs 3 Indicative 10-year production profile 2 1 >6Moz of stable produc
Slide 9: Portfolio Includes Eight World-Class Assets
Portfolio Includes Eight World-Class Assets Musselwhite Newmont world-class assets • +500koz/year consolidated Éléonore Nevada Gold Mines • <$900/koz AISC Turquoise Ridge/Twin Creeks • Mine life >10 years Goldstrike/Carlin Porcupine Cortez • Top-Tier Jurisdictions* Pueblo Viejo CC&V Merian Akyem Peñ
Slide 10: Eight World-Class Assets in Top-Tier Jurisdictions
Eight World-Class Assets in Top-Tier Jurisdictions Carlin Turquoise Ridge Cortez Boddington Tanami Ahafo Peñasquito Nevada (38.5%) >1 Million GEOs* 500–600,000 ozs* ~700,000 ozs** >1.5 Million GEOs* ~1.5Moz gold in 2019 AISC of ~$800/oz* AISC of ~$650/oz* AISC of ~$800/oz** AISC of
Slide 11: 100Moz in Gold Reserves with Substantial Resources
100Moz in Gold Reserves with Substantial Resources Largest gold reserves in the industry Percent of Gold Reserves by Jurisdiction 2019 Reserve Highlights North America* South America Australia Africa 100 MOZ 63 MOZ Industry’s largest gold Gold equivalents from copper, 12% Reserves silver, zinc, and
Slide 12: The World's Leading Gold Company
The World’s Leading Gold Company INDUSTRY’S BEST PORTFOLIO #1 GOLD PRODUCER LEADING SUSTAINABILITY PERFORMANCE 8 world-class assets +6Mozs/year #1 gold mining company in DJSI 2 emerging world-class assets 1.2-1.4M GEO/year #1 gold company in the Corporate +90% in Top-Tier Jurisdictions
Slide 13: Appendix
Appendix BMO METALS & MINING CONFERENCE 02.24.2020 NEWMONT CORPORATION 13
Slide 14: Sustainability Program Aligned to Best Practice
Sustainability Program Aligned to Best Practice Accountability and transparency in setting public sustainability targets E Water – reduce freshwater consumption by 5% by YE 2019 Climate change – reduce GHG emissions intensity by 16.5% by YE 2020 Environmental Closure – achieve 90% of planned rec
Slide 15: Delivered strong Q4 and Full Year Results
Delivered strong Q4 and Full Year Results Generated $3.7B of Adjusted EBITDA and $1.4B of Free cash flow in 2019 FINANCIAL METRIC Q4 2018 Q4 2019 2018 2019 Revenue ($M) $2,048 $2,967 45% $7,253 $9,740 34% Adjusted Net Income ($M) $214 $410 92% $718 $970 35% Adjusted Net Income ($/diluted share) $0.4
Slide 16: Sustainable, Stable Production Profile
Sustainable, Stable Production Profile * ATTRIBUTABLE PRODUCTION (MOZ ) Stable production 8.0 Total GEOs outlook of 6.2 – 6.7M ounces per year (#1 in 7.0 industry) 6.9 Additional 1.2 to 1.4M 6.0 6.3 gold equivalent ounces produced per year 5.0 ~$1.5B in additional revenue per year generated fr
Slide 17: Culture of Cost Discipline and Productivity
Culture of Cost Discipline and Productivity * CAS & AISC ($/OZ ) Delivered $430M of $1,000 $966 sustainable value from Full Potential program in $900 2019 $800 2020 AISC costs of $975/oz, declining to $721 $800-$900/oz by 2023 $700 Capital discipline $600 maintained with 2019 Actual 2020E 2021
Slide 18: Five Year Cost and Production Outlook
Five Year Cost and Production Outlook Guidance metric 2020E (+/-5%) 2021E 2022E 2023E 2024E Gold production* 6.4 6.2 – 6.7 6.2 – 6.7 6.2 – 6.7 6.2 – 6.7 Other metal production** 1.1 1.0 – 1.2 1.1 – 1.3 1.3 – 1.5 1.3 – 1.5 Total GEO production (Mozs) 7.8 7.3 – 7.8 7.3 – 7.8 7.6 – 8.1 7.6 – 8.1 CAS***
Slide 19: Reducing Support Costs and Investing in Our Future
Reducing Support Costs and Investing in Our Future Corporate expense outlook (+/-5%) 2020E G&A ($M) 265 Interest expense ($M) 300 DD&A ($M) 2,125 Exploration & advanced projects ($M) 450 * Adjusted tax rate 38% – 42% *Assuming average gold price of $1,400 per ounce. Includes Federal tax rate of 29-3
Slide 20: Recent Capital and Financing Activities
Recent Capital and Financing Activities * DEBT REPAYMENT SCHEDULE ($M) Announced plan to increase annual dividend to $1.00/share (increase of 79%) Initiated $1 billion share $992 $1,000 $1,000 repurchase plan ($506M $874 repurchased to date) $700 $600 $550 Refinanced 2019 debt $450 with 10-yea
Slide 21: Leading Project Pipeline and Track Record
Leading Project Pipeline and Track Record Scoping Prefeasibility Feasibility Definitive Feasibility Execution CC&V Underground Century Nueva Unión JV Yanacocha Sulfides Musselwhite Materials Handling Merian extension Coffee Ahafo North (Sabajo) Tanami Expansion 2 Galore Creek JV
Slide 22: Tanami Expansion 2 Increases Profitable Production
Tanami Expansion 2 Increases Profitable Production INDICATIVE TANAMI PRODUCTION PROFILE (KOZ) Supports 550 – 600kozs at $600 – $700/oz AISC 800 Provides platform for future 600 growth at world-class asset Production* 150 – 200koz 400 Unit cost >10% improvement** 200 Capital $700 – $800M Internal
Slide 23: Ahafo Projects Extend Life, Improve Costs
Ahafo Projects Extend Life, Improve Costs Subika Underground Updated Mining Method Extends life with Safely captures Mining cost per ton Lower near-term higher underground higher efficiencies improvements production tons (2020 – 2021) 2020 – 2024 metrics Ahafo with investment Production (kozs) 550 –
Slide 24: Ahafo North - Best Unmined Deposit in West Africa
Ahafo North - Best Unmined Deposit in West Africa INDICATIVE AHAFO NORTH PRODUCTION PROFILE (KOZS) Open pit mine, stand-alone mill for processing 3.5Mozs of 1,200 Reserve and 1.0Mozs of * 1,000 Resource 800 Investment of $700 to $800 million with a three year 600 development timeline 400 Incre
Slide 25: Yanacocha Sulfides Optimizing Approach
Yanacocha Sulfides Optimizing Approach INDICATIVE YANACOCHA PRODUCTION PROFILE * (GEO * * KOZS, 100%) First phase focuses on developing most profitable deposits to 800 optimize risk and returns Potential to extend operational 600 life to 2041; favorable drilling at Advancing further Chaqui Centr
Slide 26: Exploration Strength Through Investments
Exploration Strength Through Investments Astro | Evrim Resources Triumph Gold Independence Gold Lucky Strike Resources Aurion Resources Colorado Resources Mawson Resources TMAC Auryn Resources Independence Gold GT Gold Azimut Exploration Quebec Precious Sirios Resources Irving Resources Contact Gold
Slide 27: 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 28: Broad Management Experience
Broad Management Experience Executive Leadership Tom Palmer Rob Atkinson Nancy Buese Jen Cmil President and CEO EVP and CFO EVP HR Team EVP and COO Randy Engel Dean Gehring Steve Gottesfeld Nancy Lipson EVP Strategic Dev EVP and CTO EVP S&ER EVP General Counsel Australia South America North America
Slide 29: Diverse Board Led by Independent Chair
Diverse Board Led by Independent Chair Board Committees Audit Leadership Corporate Safety & 6 women Development & Governance & Sustainability Compensation Nominating 1 African Bruce R. Brook (C) Veronica Hagen (C) Noreen Doyle (C) Jane Nelson (C) 1 Hispanic J. Kofi Bucknor Greg Boyce Bruce R. Brook
Slide 30: Executive Compensation Structure
Executive Compensation Structure Incentive vehicles balance key performance elements Pay mix (CEO % shown) Objectives/Alignment Stock Price Value varies with NEM performance Base salary Performance Retention component 13% Restricted Personal Relative Long-term incentive to outperform gold Stock
Slide 31: 2020 Short-Term Incentive Plan
2020 Short-Term Incentive Plan* Focus on metrics of high priority to improve focus and ability to execute Aligns with the strategy map and the mining business cycle Functional/personal goals cover additional annual strategic priorities Metrics Weighting Rationale Health & Safety • Focus on cor
Slide 32: 2020 Strategy Map
2020 Strategy Map Environment, Social Health & Safety Operational Excellence Growth People and Governance OUR PURPOSE • A fatality, injury and illness free • Culture of continuous • Value accretive growth • Competitive advantage through • Access to land, resources and To create value and OBJECTIVES
Slide 33: 2020 Outlook by Region
a 2020 Outlook by Region Consolidated Consolidated Attributable Attributable Consolidated Sustaining Development Sustaining Development Consolidated Attributable Consolidated All-in Sustaining Capital Capital Capital Capital b 2020 Outlook +/- 5% Production Production CAS Costs Expenditures Expendit
Slide 34: 2020 Outlook by Site as of January 2nd, 2020
a 2020 Outlook by Site as of January 2nd, 2020 Consolidated Consolidated a2020 outlook projections used in this presentation are considered forward-looking statements and Consolidated Sustaining Development Consolidated Attributable Consolidated All-in Sustaining Capital Capital represent management
Slide 35: Longer-term Outlook
Longer-term Outlook Outlook 2020E (+/- 5%) 2021E 2022E 2023E 2024E Attributable Production (koz) 6,400 6,200 - 6,700 6,200 - 6,700 6,200 - 6,700 6,200 - 6,700 Attributable Co-products (GEOs Koz) 1,105 1,000 - 1,200 1,100 - 1,300 1,300 - 1,500 1,300 - 1,500 Consolidated Gold CAS ($/oz) 750 650 - 750
Slide 36: Adjusted net income (loss)
Adjusted net income (loss) Management uses Adjusted net income (loss) to evaluate the Company’s operating performance and for planning and forecasting future business operations. The Company believes the use of Adjusted net income (loss) allows investors and analysts to understand the results of the
Slide 37: Free cash flow
Free cash flow Management uses Free Cash Flow as a non-GAAP measure to analyze cash flows generated from operations. Free Cash Flow is Net cash provided by (used in) operating activities less Net cash provided by (used in) operating activities of discontinued operations less Additions to property, p
Slide 38: EBITDA and Adjusted EBITDA
EBITDA and Adjusted EBITDA Management uses Earnings before interest, taxes and depreciation and amortization (“EBITDA”) and EBITDA adjusted for non-core or certain items that have a disproportionate impact on our results for a particular period (“Adjusted EBITDA”) as non-GAAP measures to evaluate th
Slide 39: All-in Sustaining Costs
All-in Sustaining Costs Newmont has developed a metric that expands on GAAP measures, such as cost of goods sold, and non-GAAP measures, such as costs applicable to sales per ounce, to provide visibility into the economics of our mining operations related to expenditures, operating performance and t
Slide 40: All-in Sustaining Costs
All-in Sustaining Costs (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes by-product credits of $32 and excludes co- product revenues of $294. (3) Includes stockpile and leach pad inventory adjustments of $2 at CC&V, $6 at Yanacocha, and $9 at NGM. (4) Reclamat
Slide 41: All-in Sustaining Costs
All-in Sustaining Costs (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes by-product credits of $32 and excludes co-product revenues of $294. (3) Includes stockpile and leach pad inventory adjustments of $2 at CC&V, $6 at Yanacocha, and $9 at NGM. (4) Reclamati
Slide 42: All-in Sustaining Costs
All-in Sustaining Costs (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes by-product credits of $94 and excludes co- product revenues of $691. (3) Includes stockpile and leach pad inventory adjustments of $12 at CC&V, $16 at Yanacocha, $19 at Boddington, $20 at
Slide 43: All-in Sustaining Costs
All-in Sustaining Costs (1) Excludes Depreciation and amortization and Reclamation and remediation. (2) Includes by-product credits of $53 and excludes co- product revenues of $303. (3) Includes stockpile and leach pad inventory adjustments of $5 at CC&V, $39 at Yanacocha, $33 at Ahafo, $34 at Akyem
Slide 44: All-in Sustaining Costs
All-in Sustaining Costs 2020 OUTLOOK GOLD A reconciliation of the 2020 Gold AISC outlook to the 2020 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 Sect
Slide 45: All-in Sustaining Costs
All-in Sustaining Costs 2020 OUTLOOK CO-PRODUCTS A reconciliation of the 2020 Co-products AISC outlook to the 2020 Co-Products 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 Sec
Slide 46: Net Debt to Pro Forma Adjusted EBITDA Ratio
Net Debt to Pro Forma Adjusted EBITDA Ratio Management uses net debt to Pro forma 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 Pro forma Adjusted EBITDA represents the rati
Slide 47: Endnotes
Endnotes Investors are encouraged to read the information contained in this presentation in conjunction with the most recent Form 10-K for the year ended December 31, 2019 filed with the SEC on February 20, 2020, and with the Cautionary Statement on slide 2 and following notes below. Outlook Assumpt
Slide 48: Endnotes
Endnotes Reserves and Resources Cautionary to US Investors. 2019 Newmont Reserve estimates should be considered as of December 31, 2019. For more information regarding Newmont’s 2019 reserves, see the Company’s Annual Report filed with the SEC on February 20, 2020 for the Proven and Probable reserve