Slide 1: First Quarter Earnings 2010
First Quarter Earnings 2010 Tuesday April 27, 2010 Newmont Mining Corporation First Quarter Earnings April 27, 2010 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 an
Slide 3: Q1 2010 Highlights
Q1 2010 Highlights Full exposure to increasing metal prices drives improving revenues, cash flow and earnings – Averaged realized gold price of $1,106 (up 22% from Q1’09) and copper price of $3.33 (up 97% from Q1’09) – Revenue of $2.2 billion, up 46% from Q1’09 – Cash flow from continuing operatio
Slide 4: Q1 2010 Highlights (continued)
Q1 2010 Highlights (continued) Successfully meeting operating targets – Equity gold production of 1.3 Moz; Equity copper production of 90 Mlbs – Gold CAS of $480 per ounce; Copper CAS of $0.78 per pound – Maintaining 2010 outlook for gold production, CAS and capital Continue to advance our portf
Slide 5: Bullish Metal Prices
Bullish Metal Prices Gold Supply and Demand Gold mine supply remains 2007 - 2009 challenged: 4,000 – Global grades are declining 3,000 Supply – Industry costs are rising 2,000 1,000 Investment demand is driving Tonnes the gold price up as economic - uncertainty persists (1,000) Demand (2,000)
Slide 6: Q1 2010 Financial Highlights
Q1 2010 Financial Highlights Net Cash Flow from Adjusted Net Income per Revenue ($ billion) Continuing Operations Share (1) ($ million) $728 $0.83 $2.24 Up 91% Up 98% Up 46% $1.54 $381 $0.42 Q1’09 Q1’10 Q1’09 Q1’10 Q1’09 Q1’10 1 Refer to slide 18 for reconciliation to GAAP net income attributable to
Slide 7: Q1 2010 Operating Highlights – Gold
Q1 2010 Operating Highlights – Gold Operating Margin Expanding Faster than Gold Price Equity Gold Production (million ounces) Average Realized Gold Price ($/ounce) Up 4% Up 22% $1,106 1.33 1.28 $906 Q1’09 Q1’10 Q1’09 Q1’10 Costs Applicable to Sales ($/ounce) Gold Operating Margin ($/ounce) Up 11% Up
Slide 8: Q1 2010 Operating Highlights – Copper
Q1 2010 Operating Highlights – Copper Margin Expansion Led by Higher Copper Production and Prices Equity Copper Production (million pounds) Average Realized Copper Price ($/pound) Up 97% $3.33 90 Up 143% 37 $1.69 Q1’09 Q1’10 Q1’09 Q1’10 Costs Applicable to Sales ($/pound) Copper Operating Margin ($/
Slide 9: Demonstrating Significant Leverage to the Gold Price
Demonstrating Significant Leverage to the Gold Price Cash Operating Margin (per ounce) $239 Copper Credit ($) Margin expansion from unhedged production $50 Averaged realized gold price up 22% from Q1’09 $626 $475 Gold operating margin up 32% from Q1’09 Including copper credits, operating mar
Slide 10: Q1 2010 Operating Results by Region
Q1 2010 Operating Results by Region - Continuing to Deliver on our Plans Equity Gold Production Gold Costs Applicable to Sales (Koz) ($/oz) $587 $575 $559 $542 522 519 $470 $459 473 453 $372 $340 219 217 121 120 North AmericaSouth America Africa APAC North America South America Africa APAC Expectati
Slide 11: Boddington Ramp-Up Continues
Boddington Ramp-Up Continues Q4 ’09 Q1 ‘10 Au (Koz) 118 158 Production Cu (Mlbs) 10 14 Co-product $468 $532 CAS By-product $352 $436 Newmont Mining Corporation First Quarter Earnings April 27, 2010 11
Slide 12: Development of Project Portfolio
Development of Project Portfolio – Advancing our Development Opportunities in Every Region Hope Bay, Canada Nevada Operations Portfolio Subika Expansion, Major Projects Ghana APAC Portfolio Nevada La Herradura Ahafo Yanacocha Batu Hijau Conga, Peru Akyem, Ghana Tanami Jundee Boddington Waihi Operati
Slide 13: Nevada Portfolio: Greater Leeville/Turf (Stage 2)
Nevada Portfolio: Greater Leeville/Turf (Stage 2) Potential to More than Double Current Reserves of ~3 Moz New exploration drill intercepts have expanded (CGX8) known Leeville/Turf mineralization 74 m @ 3 gpt Au, including 10 m @ 13 gpt Au – Over 1,000m to the North of Turf; and 25 m @ 12 gpt Au –
Slide 14: Batu Hijau Divestiture Update
Batu Hijau Divestiture Update December 31, 2009 – Direct Batu Hijau Ownership through NTP 35.44% – PTPI advance & voting arrangements 17.00% • Economic ownership for Q1 results 52.44% 7% Divested March 15, 2010 (3.94%) – $247 million proceeds ($139 million NEM share) Economic Ownership & Proven & Pr
Slide 15: Leadership in Sustainability and Community Relations
Leadership in Sustainability and Community Relations Third consecutive year selected to the Dow Jones Sustainability World Index International Cyanide Code Certification – 100% certified (except Boddington – still in ramp-up) – First major gold producer to reach 100% certification Unprecedente
Slide 16: Newmont Continuing to Deliver Operational Execution
Newmont Continuing to Deliver Operational Execution, Gold Price Leverage and Project Development Demonstrated ability to consistently deliver on plans Strong cash flow generation from gold and copper production Aggressively advancing robust project pipeline Exploration program focused on lon
Slide 17: Newmont Mining Corporation First Quarter Earnings April 27, 2010
Newmont Mining Corporation First Quarter Earnings April 27, 2010 17
Slide 18: Reconciliation - Adjusted Net Income to GAAP Net Income
Reconciliation - Adjusted Net Income to GAAP Net Income Management of the Company uses the non-GAAP financial measure Adjusted net income to evaluate the Company’s operating performance, and for planning and forecasting future business operations. The Company believes the use of Adjusted net income
Slide 19: Q1 2010 Performance Highlights
Q1 2010 Performance Highlights (In millions except when stated otherwise) Q1’10 Q1’09 % Change Revenue $2,242 $1,536 46% Net Cash from Continuing Operations $728 $381 91% Adjusted Net Income 1 $408 $199 105% Adjusted Net Income per share 1 $0.83 $0.42 98% Equity Gold Ounces Produced (thousands) 1,33
Slide 20: 2010 Outlook Update
2010 Outlook Update Description Q1 Update 2010 Original Equity gold production (Kozs) 5,300 – 5,500 5,300 – 5,500 Costs applicable to sales - Gold ($/oz) $450 – $480 $450 – $480 Equity copper production (Mlbs) 330 – 360 350 – 380 Costs applicable to sales - Copper ($/lb) $0.85 – $0.95 $0.85 – $0.95